Trick or Treat: Be Aware of Internet Scams Aimed at Lawyers
It may be a long time since you were worried about monsters hiding under the bed, but there is a monster you should be worried about—and it is hiding right in your emails. Emailed invitations to scams, targeting lawyers in particular, have been on the rise for the past several years. State bars throughout the nation have warned attorneys of the need to be vigilant in responding to email solicitations. In fact, in its August 2015 Attorney E-Newsletter, the Pennsylvania Office of Disciplinary Counsel provided a link to an American Bar Association ethics tip that outlined a new and sophisticated scam that has been used to victimize lawyers (see goo.gl/1zkRy2). For lawyers, the danger is manifold, as our clients are also threatened by attacks on our trust accounts.
October 29, 2015 at 08:00 PM
7 minute read
It may be a long time since you were worried about monsters hiding under the bed, but there is a monster you should be worried about—and it is hiding right in your emails. Emailed invitations to scams, targeting lawyers in particular, have been on the rise for the past several years. State bars throughout the nation have warned attorneys of the need to be vigilant in responding to email solicitations. In fact, in its August 2015 Attorney E-Newsletter, the Pennsylvania Office of Disciplinary Counsel provided a link to an American Bar Association ethics tip that outlined a new and sophisticated scam that has been used to victimize lawyers (see goo.gl/1zkRy2). For lawyers, the danger is manifold, as our clients are also threatened by attacks on our trust accounts.
The scam begins with a facially legitimate email requesting services in a variety of cases, though primarily in matrimonial, contracts, or collection cases where large sums of money are owed. Whatever the substantive context, the services themselves require the collection of a substantial sum. Be aware that the scammers have moved past the Nigerian royalty ploy and now create businesses, complete with websites and contact information, or use the identities of businesses that have recently closed and still have websites and identity trails available. Engagement letters and retainer agreements are signed and exchanged. The lawyer's services are either a percentage of the amount collected or a flat fee, the majority of which will be paid after the debt is collected.
Before much time passes and the lawyer starts to do actual work, the lawyer is either told that the case is settled or the counterparty settles quickly and a check is delivered. That check is intended to be deposited in the lawyer's trust account. The check will not be drawn on a local bank, but the bank will be verified by a telephone number on the check or provided by the client. The lawyer is instructed to negotiate the check through the trust account, remove his fee, and then wire the balance according to the client's directions. The lawyer will learn that the check has “cleared” within a few days. However, it may take weeks, or even longer for a good forgery to reveal itself. The most important precaution to take is not to distribute funds until you learn from your bank that the check has been honored and the funds collected, which is different than “clearing.”
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Who Got The Work
Greenberg Traurig shareholders Christina M. Carroll and A. Michael Pratt have entered appearances for the Secretary of the Pennsylvania Department of Banking and Securities, Wendy Spicher in a pending civil rights lawsuit. The case, filed Aug. 13 in Texas Northern District Court by Troutman Pepper Hamilton Sanders; Ashcroft Sutton Reyes; and Locke Lord on behalf of TMX Finance Corporate Services, seeks to challenge the secretary’s ongoing attempt to regulate commercial lending activity outside the Commonwealth of Pennsylvania. The suit furthers contends that the secretary issued an investigative subpoena to TMX for potential violations of the Pennsylvania Loan Interest and Protection Law and the Consumer Discount Company Act despite TMX's business activities not being governed by such. The case, assigned to U.S. District Judge David C. Godbey, is 3:24-cv-02054, TMX Finance Corporate Services Inc v. Spicher.
Who Got The Work
Joseph J. Mueller and Rachel Bier of Wilmer Cutler Pickering Hale and Dorr have entered appearances for Omachron Alpha, Omachron Intellectual Property and SharkNinja Operating in a pending patent infringement lawsuit. The action, filed Sept. 16 in Massachusetts District Court by Kirkland & Ellis, asserts three patents in connection with SharkNinja's sale of the 'Vertex' and 'Stratos' cordless vacuum cleaners. The case, assigned to U.S. District Judge Allison D. Burroughs, is 1:24-cv-12373, Dyson, Inc. et al v. SharkNinja, Inc. et al.
Who Got The Work
Shloime Fellig of Latham & Watkins has entered an appearance for Ardelyx the company's CEO and CFO in a pending securities class action related to Xphozah, a drug which treats kidney disease and end-stage renal disease. The complaint, filed Aug. 16 in Massachusetts District Court by Pomerantz LLP, contends that the defendants failed to disclose that the company would not be seeking the drug’s acceptance into the Transitional Drug Add-on Payment Adjustment, a bundled payment system regulated by the Medicare Improvements for Patients and Providers Act. The case, assigned to U.S. District Judge Leo T. Sorokin, is 1:24-cv-12119, Yarborough v. Ardelyx, Inc. et al.
Who Got The Work
Alexander P. Ott, Megan Corrigan and Karen Gover of McDermott Will & Emery have entered appearances for Analog Devices, a Massachusetts-based manufacturer of semiconductor processing equipment, in a pending patent infringement lawsuit. The suit, which asserts two patents, was filed July 9 in Massachusetts District Court by Arrowood LLP and the Devlin Law Firm on behalf of Ocean Semiconductors. The case, assigned to U.S. District Judge Patti B. Saris, is 1:24-cv-11759, Ocean Semiconductors LLC v. Analog Devices Inc.
Who Got The Work
Forrest M. 'Teo' Seger of Clark Hill has entered an appearance for Equifax Information Services in a pending lawsuit for claims under the Fair Debt Collection Practices Act. The case was filed Aug. 13 in Texas Western District Court by Halvorsen Klote on behalf of Quinton Humphrey. The case, assigned to U.S. District Judge Fred Biery, is 5:24-cv-00892, Humphrey v. LVNV Funding, LLC et al.
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