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e-Mail Scams Targeting Attorneys
Even if you have not seen the warnings broadcast by various national, state, and local bar associations, you probably have seen the e-mails themselves. The ungrammatical messages read something like this:
Dear Counsel,
The management of Sunway Electric Manufacturing Company, Ltd. requires your legal representation for our North American delinquent customers. We are of the opinion that a reputable attorney is required to represent us in North America for us to recover monies due to our organization by overseas customers, and as well follow up with these accounts. In order to achieve these objectives a good and reputable law firm like yours will be required to handle this service. We understand that a proper attorney client agreement must be entered into by both parties. This will be done immediately we receive your letter of acceptance regarding this proposal.
When the attorney responds, an engagement letter is sent and received, and the attorney is advised shortly thereafter that the matter has resolved itself, the delinquent account debtor has agreed to pay, and the attorney will be receiving a settlement check. The attorney is asked to deposit the settlement check in the firm's client trust account and then to wire transfer the settlement funds overseas once the bank has advised that the funds are available. The check, which may be for hundreds of thousands of dollars, is fraudulent.
Losses result from lawyers' frequent misunderstanding of banking regulations, which permit a bank to advise that “funds are available” before a check actually has cleared. So, what happens is that the funds are wired overseas by the law firm when the “funds are available,” and thereafter the check is returned as either “NSF” or as a fraudulent check. The bank reverses the deposit, but the wire-transferred monies cannot be recovered. In all instances, the law firm has now lost its clients' money that it was holding in trust ' some of which may have been retainers to be applied to future fees and some of which may have been funds held pending disbursement to the firm's clients or to others on their behalf. In some instances, where the amount of the wire transfer exceeds the original balance in the account, the bank will claim an overdraft and demand payment to cover the overdraft. To make matters worse, the attorney and the firm may be subject to mandatory reporting requirements and disciplinary proceedings.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.