U.S. Commercial Service Saves Small VA Business from $470,000 Overseas Scam

McQ is a company based in Fredericksburg, Virginia, which specializes in producing ground sensor and satellite communications systems for military and commercial purposes. McQ received an email from an individual purporting to represent an Ethiopian government agency, seeking bids for a $47 million tender for security system sensors. 

The tender was of interest to McQ and while awaiting further guidelines from this individual, the company contacted the Virginia Economic Development Partnership (VEDP) for assistance in navigating Ethiopia’s business practices. VEDP put McQ in contact with the U.S. Commercial Service in Northern Virginia (CS NOVA). After learning of McQ’s tender opportunity, CS NOVA reviewed the initial documents and shared all background information with CS Ethiopia, which then determined that the offer was most likely a scam. After continuing research, CS Ethiopia was able to determine that the opportunity was 100% fraudulent. Once CS informed McQ of their findings, the company immediately halted the proposal process. The quick checking by the CS offices on the validity of the tender, saved the company an estimated $470,000, which was being requested by the individual as a 10% bond to bid on the tender.

 “I want to express my appreciation for the invaluable assistance of the U.S. Commercial Service teams in Northern Virginia and Ethiopia as well as the Virginia Economic Development Partnership (VEDP) as it relates to what was presented to me as a legitimate tender opportunity from the Ethiopian Public Procurement and Property Administration Agency. McQ Inc is a leading provider of security systems to the U.S. military, to many U.S. Government Agencies and to many U.S. Partner countries. I am amazed to see how well federal and state partners in Virginia work together to help small business such as McQ Inc. It has been an excellent experience for McQ to have the opportunity to make use of such phenomenal federal and state resources to help us with navigating exporting opportunities, It is very reassuring there is someone I can rely on and reach out to for advice when needed. McQ very sincerely thanks the U.S. Commercial Service as this would have been a huge disaster for McQ if we had proceeded into the scam.” - John McQuiddy, Owner of McQ Inc