14 DAY TRIAL // New Hampshire Attorney General Michael Delaney and Deputy Banking Commissioner Robert Fluery alerted lawyers of an ongoing scam that involves fake checks. The warnings came after at least two attorneys were targeted in recent weeks and one of them ended up loosing $240,000.
The scammers pose as companies based overseas who are looking for attorney services, usually in money collection matters. Such was the case of two local lawyers who agreed to take two of these fake companies as clients in exchange for a commission of the collected money.
Shortly after signing the company up, one of the attorneys received an email informing him that one company agreed to pay without any intervention. He then received a check for a large sum of money and a letter from the opposing counsel.
His client instructed him to wire the money to him and keep the commission. Fortunately, out of an abundance of caution the lawyer decided to contact the opposing counsel, using the contact info listed in the letterhead. This allowed him to learn that both the letter and check were fraudulent and contact the authorities.
However, a second lawyer was not so lucky. His client was allegedly a company based in China, which informed him that he will receive a check from one of its customers. When the check arrived, the attorney deposited it in an Interest on Lawyer Trust Account (IOLTA).
He was then instructed to wire half of the check's amount, over $240,000, to another customer, which he did. After a few days he learned that the check was counterfeit and all of his business, personal and joint accounts were frozen.
Even though New Hampshire Assistant Attorney General Karen Gorham told The Boston Globe that this is the first scam she's seen that specifically targeting lawyers, this type of attack is not new. Over a year ago we reported an almost identical incident, which left a Houston lawyer out of $185,000. "It's very, very difficult to find people in scams like this," Gorham commented.
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