State Bar of Texas Blog
Fraud Alert: Con artists targeting lawyers with sophisticated scams
On March 2, the State Bar received a call from Houston lawyer Richard Merrill, who was targeted by an elaborate variation on an email scam that has targeted lawyers for some time. The email scams usually involve overseas criminals pushing bogus debt collection matters - if the scam succeeds, the targeted attorney deposits a fake cashier's check in trust and then disburses funds before the check clears (and is on the hook for the money).
Instead of email, Merrill was contacted directly by a Houston realtor who thought she was helping a London-based doctor buy a house in Houston. In fact she was dealing with a scam artist who had stolen the doctor's identity. Merrill offered his services and ultimately received a bogus cashier's check as a down payment for the house. Luckily for Merrill, his bank identified the check as fraudulent before it was deposited. Read Merrill's full account here.
The State Bar also heard from a Dallas firm which was listed in the return address field on about 300 bogus checks for $3,000 to $4,000 mailed from Fort Worth by scammers who asked their victims to send $500 in order for their checks to clear. The Bar also heard from a Dallas firm whose identity was stolen as part of a payday loan scam in which the scammer purported to be from the firm and attempting to collect a debt.
Attorneys should be extra-vigilant for scams of this type, and never issue a check from a trust account until deposited funds have been collected. Matters involving bank fraud are investigated by the Secret Service. If you are targeted, contact an office in your area.
For detailed information on the problem, see this article by State Bar ethics attorney Ellen Pitluk, which previously ran in shorter form in the Texas Bar Journal.