Update 12.18.25: We received a report of two more scams similar to one we reported on in October 2023. The two scams share many of the same facts with each other. An attorney was contacted, and an engagement letter was signed. Then soon afterward, the “client” informed the attorney, “I worked it out myself, and I just need the settlement check to go through you” (or something similar). This seemed strange to the attorneys, but in both cases, the attorneys soon received funds, either by check or ACH, for distribution via an IOLTA account. Also in both cases, although the attorneys live in very different parts of the country, the “settlement” check came directly to them from Canada. And in each case, the settlement check turned out to be fraudulent and were either drawn on a non-existent bank account or counterfeited from a real account without permission. In one case, the attorney caught on, did not suffer any loss, and never heard back from the “client.” The reporting attorney did however later learn from police that the “client” had used a fake ID to sign up. But in the other case, the attorney forwarded proceeds too quickly. Days later, when a bank reversed the deposit and withdrew money from the bad “settlement” check, the attorney was out almost $80,000. The bank was able to recover some but not all of the funds. It seems the scammers figure that due to the prompt payment requirements involved in IOLTA, they can use this to their advantage to get attorneys to wire funds before a check fully clears. 

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