Our Zero-Tolerance Policy: Business Fraud & Intentional Non-Payment

1. Policy Statement

FLEX operates on a foundation of mutual trust and professional integrity. We maintain a Zero-Tolerance Policy regarding business fraud. This specifically includes "Long-Firm Fraud," "Phoenixing," and any deliberate attempt to secure our services with the intent to evade payment. We do not view intentional non-payment as a standard business dispute; we view it as a criminal act.

2. Definition of Fraudulent Activity

For the purposes of this policy, "Business Fraud" includes, but is not limited to:

• Intentional Default: Securing services while knowing the business lacks the funds or intent to pay.

• Identity Misrepresentation: Using false credentials, forged financial documents, or "ghost" entities to secure credit terms.

• Asset Stripping: Intentionally emptying a company of its value to avoid paying outstanding service invoices.

• The "Stall & Vanish": Creating manufactured disputes regarding service quality solely to delay payment while the entity prepares to dissolve or disappear.

3. Protective Protocols (Prevention)

To mitigate risk, FLEX enforces the following strict "Know Your Customer" (KYC) protocols:

• Credit Thresholds: New clients are subject to strict credit limits. Large-scale service orders require a percentage of payment upfront.

• Verification: We verify the physical address, tax ID, and trade references of all new corporate accounts.

• Retention of Title: Our contracts specify that the intellectual property or stock in storage remains the sole property of FLEX until the invoice is settled in full.

4. Enforcement & Recovery Actions

Once an invoice is deemed "Deliberately Unpaid" (rather than a simple late payment), the following actions will be taken immediately:

• Immediate Service Suspension: All active services and access to myFLEX will be terminated without further notice.

• Direct Director Liability: Where legal frameworks allow, we will pursue the individual directors of the fraudulent entity to pierce the "corporate veil."

• Reporting to Authorities: We will file formal fraud reports with the Trade Commission, and law enforcement.

• Credit Bureau Reporting: Delinquent accounts will be reported to major business credit bureaus (e.g., Dun & Bradstreet, Experian Business) to prevent the fraudster from victimizing other companies.

• Third-Party Litigation: Accounts will be handed over to specialized fraud-recovery legal teams for aggressive litigation.

5. No-Settlement Clause

In cases of proven deliberate fraud (where a company "disappears"), FLEX reserves the right to refuse partial settlements. Our goal is not just recovery, but the total exclusion of fraudsters from the business ecosystem.

Effective Date: April 05, 2026