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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.
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?
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.