Update 1/30/2018: We received a report of another scam. A Texas attorney recently received an email that is part of an ongoing scam directed to attorneys in which the scammer is attempting to get the attorney to wire real funds after receiving fraudulent payments (bad checks or fake credit cards). The text of the email is as follows:
I am in need of your legal assistance regarding a breach of loan agreement I provided a friend of mine in the amount of $750,000. He needed this loan to complete an ongoing project he was handling last year. He now resides in your jurisdiction and the loan was for 24 months with interest accrued at the rate of 7.5%. The capital and interest were supposed to be paid May last year but he has only paid $50,000 which was in October.
Please let me know if this falls within the scope of your practice, so that I can provide you with the loan documents and any further information you need to know.
Update 1/25/2018: We received a report of another scam. A Texas law firm received an inquiry through their website asking if they could draw up a contract for the sale of used construction heavy equipment. The firm responded asking for more details, and the “seller” in Florida sent a detailed appraisal and photograph of the equipment, complete with serial number and a signed letter of intent from a buyer in Texas. The “seller”, “buyer,” and “broker” information all checked out online in Florida, and the “buyer” information also checked out on the Texas Secretary of State website. All were legitimate businesses involved in that type of transaction.
The “seller” signed the engagement letter and sent a paper check from New York that looked legitimate and appeared to be issued by the “buyer.” The firm deposited the check into their trust account. Later that week, the “seller” asked them to wire part of the funds for an inspection of the equipment. Because the check hadn’t cleared the firm’s bank and the wire was to a location in Asia, the firm didn’t send the money, and they inspected further.
The firm called the “seller” who answered using the name of the legitimate Florida businessman. He provided a number during that call that went to a recorded voicemail matching the “broker” details. They called a phone number from the broker’s website, and the real broker answered and said they were the second firm that week to call him (the other was from Delaware), that a scammer had ripped off his letterhead and information, and that he was not involved in any transaction like they described. The firm also contacted the “buyer” using an independent number they found, and the local person who answered said that he ran a legitimate business but was not buying any equipment and knew nothing of the transaction.
The firm contacted their bank, and the bank president contacted the issuing check bank. The issuing check bank was a real bank, but the check and account number with that bank were phony.
Update 11/15/2017: We have received a report of another scam. A person in Australia was contacted by a scammer using a Texas attorney’s information. The person who was contacted was scammed previously and lost money, and he believes it is the same scammers who are contacting him again. In the emails, the scammers say they can recover the person’s money for him from a company, Norton Pearce Associates, that has filed for Chapter 7 bankruptcy.
Update 9/13/17: We have received a report of another scam. A person in New York received a phone call from someone claiming to be her grandson, who lives in Texas. She was told that he was in jail and needed bail money. They told her to call (877) 386-6064 for the Bradford Law Firm and ask for attorney Allen Roberts. The phone number has been disconnected, and the Texas attorney Allen Roberts is deceased.
Update 7/13/17: We received a report from an attorney who was contacted through their firm Facebook page and by e-mail by someone who claims that the attorney represents them in a lawsuit in Kenya. The person is not a client of the firm, and they have no record of any previous communication with the person.
Update 6/26/17: We received a report of another scam targeting Texas attorneys. An attorney received a scam email seeking representation to draft a purchase and sales agreement for a boat sale. The scammer sent the email using another attorney’s name in the email address. View the scam email attachment.
Update 5/26/17: We received a report of another scam targeting Texas attorneys.
A lawyer received a call from someone purporting to be from the State Bar of Texas. The caller, who identified the date the lawyer was admitted to practice law in Texas, offered the attorney a half-year free membership and listed associated benefits. After the attorney refused and ended the conversation, the caller attempted to contact another lawyer in his office but was stopped by the receptionist.
The State Bar of Texas Membership Department does not call attorneys with special offers for membership dues.
Update 5/4/17: We received reports of two more scams targeting Texas attorneys.
A law firm received emails from a person asking to hire the firm to collect payment for goods provided to a third party. The firm also received an email from the third party. Both emails were fake. The firm also received a check as a retainer, and upon verification with the Canadian bank listed on the check, confirmed it was fake. View the scam emails and fraudulent check.
Another law firm received several scam emails within a few days of each other from different senders from locations in Europe, the Netherlands, Africa, and the United States. The emails were requests for various legal services including help with a real estate loan default, seeking assistance with an investment, and drafting a purchase and sales agreement for a drilling rig. The firm also received a fake out of office reply email from a sender they did not contact.
Update 4/17/17: We received a report of another scam in which a law firm’s accounting department received an email purporting to be from the president of the firm, instructing them to pay a statement for $19,500 for professional service. When accounting requested more information, the president responded that the email was not from him. The address it appeared to come from was email@example.com.
Update 4/11/2017: We received reports of two more scams targeting Texas attorneys.
An attorney received a phishing email. He tried to open an email which appeared to be from a referring attorney sending documents via DocuSign. Over 20 people on his contact list also received the email. The hackers sent out thousands of fake emails to his contacts which appeared to be coming from him. The hackers also responded to inquiries from his contacts questioning if the phishing email was legitimate.
Another attorney received a fraudulent check. He received a $400,000 check that cleared his bank and was told it was part of a $1,000,000 deal. He also received a second payment. He received instructions to deduct his fee and wire the remaining funds to Kenya. He called his bank to verify the check. The check had a name and address on it that appeared to belong to an oil company but was that of a U.S. insurance company.
Update 3/9/2017: We have received a report of a phishing scam targeting Texas attorneys. The scammer stated they were seeking legal counsel. View a copy of the scam email.
Update: 2/23/17: We have received reports of another scam email targeting Texas attorneys. Some attorneys have received emails that appear to be coming from another attorney. It appears that the scammer was able to access attorneys’ email address books for the purpose of forwarding the e-mail from one attorney to another giving the appearance that it is a referral. It is apparently a scam enlisting attorneys to prepare legal documents upon receiving a cashier’s check deposited in trust accounts with an overpayment of legal fees being returned to the scammer from the attorney’s trust account. The initial payment is fraudulent.
Law firms in Canada and the UK have received similar e-mails.
The scam emails are coming from the following accounts with the name Tijmen Smit: firstname.lastname@example.org and email@example.com.
Update 2/26/16: We received a report about another fraudulent check scam targeting attorneys.
Update 2/3/16: We received a report of a new scam targeting clients of attorneys. Scammers are “spoofing” phone numbers of attorneys and calling clients to get money. Read the full story.
Update 10/23/15: The State Bar of Texas has been alerted to a potential email scam involving a debt collection. On October 20, a Fort Sam Houston attorney received an email from a sender who claimed that she had lent a sum of money to a borrower, and that the borrower had not yet repaid the loan in full and had since moved to Texas. The sender claimed she was seeking legal assistance in the matter and requested information about the attorney’s fees. The message also included a copy of two checks (here and here) and an alleged loan agreement promissory note.
Update 10/8/15: We received a recent report of a scam targeting attorneys. An attorney was contacted by a company and received a bogus check. Read the details on this fraudulent check scam.
Update 2/26/15. We have received a report of a scam from an attorney who received a request for assistance. She spoke on the phone to the proposed client, who asked that a buyer send the firm a 15 percent deposit from a purchase price to use as a retainer, that the firm bill their fees against it, and return the remainder to the client. Upon further searching, the attorney uncovered a scam.
Update 6/4/14. We received a report this week about a sophisticated scam involving collection with a fraudulent certified check that has affected at least three Texas attorneys. Read the details here.
10/18/13. We received a report today that the name of a San Antonio law firm is being used in a debt collection scam, where scammers apparently obtained files from a payday loan company. The scammers are calling people all over the country, saying they are with the law firm, and threatening the people with arrest if they do not immediately pay their debts. Law enforcement and the Secret Service in San Antonio are investigating the matter.
Texas attorneys should be extra-vigilant regarding potential scams involving fraudulent checks or wire transfers. These scams are increasing in sophistication, sometimes involving innocent third parties who seek legal services at the request of a scam artist.
The bottom line is this: Never issue a check from a trust account until deposited funds have been collected.
Scam scenarios include:
- a request for help in collecting a divorce settlement from an ex-spouse
- unsolicited email requests for legal help collecting money or judgments, sometimes apparently coming from actual professionals whose identities have been stolen
- a real estate transaction for an overseas client (whose identity was stolen by a scam artist) involving an innocent third-party realtor
- impersonation of law firms by scam artists who issue bogus checks and attempt to charge a fee for the checks to clear
- a bogus check received by a law firm, purportedly for payment regarding representation of an inmate
- impersonation of a lawyer and law firm by a scammer “collecting debts” under the attorney’s name
Again, be vigilant and do not disburse funds from your accounts until underlying funds have cleared your bank (and not simply been made “available”).
Cases involving bank fraud are investigated by the Secret Service. If you are targeted, contact an office in your area. Internet fraud should be reported to the Internet Crime Complaint Center.
If a scam has targeted you or your firm, please leave a comment below describing the scenario or tactics the scammer used.