Reports are being received about a potential e-mail scam targeting lawyers, particularly solo and small law firms engaged in general, commercial, or collection practices.
An overseas company e-mails a law firm, indicating that they have a debt that they need collected or a judgment to be enforced. The attorney checks the company, using its e-mail address, and learns that it appears to come from a recognized, established, publicly-traded foreign company. The attorney continues to communicate with the client by e-mail, enters into an engagement letter, obtains the documents supporting the debt or judgment, and begins to work on the matter. The attorney makes contact with the debtor, who eventually agrees to pay or settle the sum due. As part of the satisfaction, the debtor provides the attorney with a bank check. Once the attorney deposits the bank check, the attorney deducts his/her fee, and arranges for a wire to the overseas client. The bank wires the funds before the bank check clears, and soon after the check proves forged. The bank then reverses the charges back to the attorney, and freezes the attorney's account (including the escrow accounts).
Lawyers should exercise diligence in accepting matters initiated by parties not known by the attorney. Although the allure of new business can be enticing in these economic times, the need to remain vigilant to possible fraudulent practices does not diminish.
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