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Email Scams Continue To Target Law Firms

Lawyers continue to receive e-mails purporting to come from prospective clients (or their representatives), often overseas, seeking to engage the firm for a collection matter. This is regrettable, but unsurprising. Reports that lawyers still are taking the bait, however, trouble us greatly, and prompt this hotline. Those lawyers would have become victims of this prevalent scam but for their firms' good business intake procedures, not to mention policies that prevented the deposit of questionable checks into a firm trust account, or the issuance of a firm check to the supposed client. Please warn the lawyers in your firm so that they (and your firm) do not fall prey.
 
The perpetrators are becoming more sophisticated, but the basics are unchanged.  After the "client" engages the lawyer, a check comes to the firm, supposedly from the debtor.  The client directs the firm to deposit the check in the firm trust account, deduct its fee, and remit the balance to the client. The check is accepted by the firm's bank, at least initially.  Unfortunately, the crook has subtly altered the bank routing numbers, in the hopes that the law firm will issue its own check to the client before the bank uncovers the fraud.
 
In one variation on the scheme, the e-mail purports to come from a U.S.
lawyer in a distant state who has represented the client in the past, but cannot handle the new matter. A misspelling in the referring lawyer's e-mail address and Web site can be used to obfuscate the sham.  In other cases, an initial check for perhaps a few thousand dollars that is perfectly good accompanies the initial inquiry. The good check proves to be bait for the much larger bad check to come.
 
We also note that, in addition to the risk of theft, depositing checks from unknown parties can raise the specter of money laundering.
 
WHY GOOD LAWYERS FALL FOR THIS SCHEME
 
The supposed client identified in the original e-mail often checks out as a legitimate overseas business. As noted, the bad check's alterations are clever enough to pass initial muster at the bank.  Particularly in a down economy, this scheme has the potential to seduce even smart lawyers. Indeed, very recent reports from firms demonstrate that it has done so.
 
We encourage you to alert your lawyers to this ongoing problem.  If you or your firm has received one of these problem checks, we urge you to contact the Akron Police Department which is currently investigating this scheme.

Click here for more information from the Supreme Court of Ohio.