Scams Targeting Lawyers: LSBA Members Report Scam Tactics Are Changing The Louisiana State Bar Association (LSBA) is continuing its mission to alert members about scams targeting lawyers and law firms — particularly when the scammers appear to be changing tactics and using new levels of sophistication. The LSBA was recently notified by LSBA members about new scams that are using the names of real companies and/or real people — of course, the companies and people are unaware that they have been used in this way. A Baton Rouge attorney reported she was targeted in an alleged scheme using the name of a former New Orleans Saints player. She was contacted by email by someone claiming to be an architect from the United Kingdom who was owed a debt of $97,000 by this sports figure. The signed contracts, accurate bank accounts, etc., all seemed believable, she said, but, after some further checking, she learned the documents were fraudulent. A Metairie attorney related this story. “I was contacted (by email) a couple of weeks ago by a potential client, supposedly in Michigan, who was a large supplier of equipment and who needed a lawyer for a collection case in Metairie. After some email exchanges, this guy executed an engagement letter, but did not send the requested retainer or any paperwork pertaining to the alleged debt owed. He told me that he reached an agreement with the debtor and the funds would be sent to my office, from which I could deduct my fees and wire transfer the balance. Out of the blue, I get a certified check in the mail from this local company, for nearly $100,000, which I am to deposit to my firm escrow account and remit, less my fees. The certified check was a pretty good knock off of a Citibank official check. Had we deposited the check, it is possible that my bank would have shown cleared funds in about a week, I would have wired over $90,000 to some offshore account, and then a week later the physical check would reach Citibank and they would discover the fraud. I’m assuming that my bank would reverse the deposit, and my escrow account would have been overdrawn by $100,000. The supposed client is a real company in Michigan, and the supposed debtor is a real company in Metairie, although neither had any actual involvement in this. The FBI advised that this is ‘the latest in the Nigerian scam’ and that all of the participants are out of the country, so there is nothing they can do.” Another New Orleans area attorney reported a similar scam as the above. After doing some research on the “debtor” company, the attorney learned that the company was listed in the Secretary of State’s roster as in good standing. Still not trusting the $90,000 certified check he received from the “debtor” company, he called the “debtor” company who said it owed no debt and had not issued the $90,000 check. It is apparent that these schemes involving counterfeit checks or phishing emails to gain account information will continue to occur — most likely, in newer and more sophisticated packaging. Luckily, most efforts are unsuccessful but some members have been harmed. Do not accept facts as face value without more research and due diligence as to the people and matters involved. The risk for the lawyer is that if a suspect check is deposited into trust, the local bank may provide the lawyer “provisional credit.” If a lawyer disburses funds to the “client,” the lawyer, most likely, would have been later advised that the original check was invalid or determined to be counterfeit, and the lawyer would have had a large sum of money stolen. Be very careful. If suspicious, ask the bank how long it needs to determine whether a check is counterfeit. Check with your insurer to see if these fraudulent or criminal transactions are covered by your insurance. Beware of clients you have never personally met or clients who need immediate transfer of funds. Don’t be tempted by receipt of an overpayment of an advance deposit or a fee that appears “too good to be true.” The LSBA, the Office of Disciplinary Counsel and law enforcement agencies encourage LSBA members to exercise caution and perform due diligence before accepting new cases and performing financial transactions involving the lawyer’s trust account.