Yen called back on March 23, and again was recorded. Yen asked Jou for a payment of $5,000, supposedly for IRS agents in San Francisco. Yen also promised to bring Jou his "file" from the government. In a third phone conversation, Yen reluctantly agreed to come to Jou's office park to pick up the money. The trap was set.
On the drizzly afternoon of March 25, Jou prepared to meet with the criminal he knew as "Alan" in the parking lot of the industrial office park where Jou's business is located. FBI agents outfitted Jou with a hidden microphone, and took their places to watch the event. Yen arrived early, and sat in his red Honda, eating lunch.
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After a last review, Jou was on. He was about to put his life in the hands of government officials he had never before trusted and once thought corrupt.
Jou walked over to Yen's car and asked him for the promised "file" or "certificate" that would supposedly end Jou's payments. Yen said he'd been unable to get it, but that if Jou turned over the $5,000 they'd discussed, he'd return in two hours with this paperwork. Yen also scolded Jou for being slow to pay. All the other companies involved, he said, paid immediately. Jou argued that he had no more money and handed over only $1,000. Yen counted the money and asked when Jou would have the rest.
A car drove up behind the men, and one occupant called over to Jou, pretending to ask for directions. Methodically, Jou walked toward the new car on the scene. In a few quick moves, FBI undercover agents hid Jou behind their car, and swooped in to arrest Degar Yen.
It was over.
In U.S. District Court in Oakland in August, Degar Yen pleaded guilty to extorting money from Lawrence Jou. He is scheduled for sentencing next month, and could face as much as 20 years in prison.
Meanwhile, most people involved in the case speculate that Jou was probably not Yen's only victim, but rather the only one who came forward. Following Yen's arrest, the FBI even placed advertisements in publications including the Chinese World Journal,notifying other possible victims.
But no others have come forward.
"There is no shortage of fraud out there, and there was no particular reason to target [only] Lawrence," says Leuthold, explaining why he thinks there are other victims. Seeking help from law enforcement agencies is counter to the culture of many immigrant business owners, he adds.
"It's a learning curve for foreign business people," he says. "I constantly tell my clients in business about the [justice] system -- badge and search warrant, if someone says they're the police, get their badge number, call your attorney, that kind of thing."
Meanwhile, Jou has found peace, Leuthold says, rebuilding his business, and having gained a swift education in federal law and the justice system.
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