Charleston, WV – A WV State Bar member recently reported being hit with a wire fraud issue twice in the last year, and another law firm recently wired fund to the wrong account based on a fraudulent e-mail. In both cases a realtor’s e-mail account was hacked. In the first case, the buyer received alleged wire instructions from our office to send the funds for closing. Fortunately, we had asked for a cashier’s check and buyer brought to our attention. In the second case, our seller allegedly sent wire instructions for their proceeds, to which it was sent, but immediately recovered by the bank. Lawyers need to verbally call the recipient of the wire and verify the instructions, as well as obtaining copies of driver’s licenses. Also, lawyers should be sending wire instructions via secure e-mail. Generally, the hacker will get into a Yahoo account (either realtor or lawyer) and then spoof the party who is sending the wire instructions. Here is is a link to a recent Florida Bar New article.
The State Bar has become aware of fraudulent schemes that have targeted lawyers’ client trust accounts throughout the country. From email that the ADO has received from its counterparts in other states, there appear to be two variations that have been used during the last few months. The first scheme is an advance fee “confidence scam” which involves what purports to be a business proposal from officials of a foreign government or foreign business. Typically the lawyer receives an unsolicited email from a company in China (or other location in Asia). The email states that the sender has found the lawyer’s name in an online legal directory The sender then advises the lawyer that he (or she) would like to retain the services of the lawyer to collect a judgment from a local business. The lawyer then performs some preliminary research and determines that the local business is a legitimate business. A contingency agreement is entered into. Within days, and prior to a demand letter being sent, the lawyer receives a cashier’s check from the local business for a large sum of money (normally several hundred thousand dollars) towards the judgment, with a note explaining the purpose of the check. The check appears to be from a local bank The lawyer then deposits the check into his/her client trust account. The Chinese business then contacts the lawyer and advises that the business needs all (or a portion) of the settlement proceeds immediately to cover on-going business expenses. The lawyer is advised that he/she can retain his/her contingency fees from the amount that is requested to be transmitted to the Chinese business. The lawyer then calls the bank in which he/she is holding client trust funds to inquire if funds are available, and is advised that they are. The funds (less the lawyer’s fees) are then wired to the scammer’s account in China (or elsewhere in the Far East). Within days, the lawyer is informed by the bank holding his/her client trust account that the local check was a forgery, and the lawyer is then out of trust by several hundred thousand dollars. The scams normally work because the victim lawyers do not appreciate the difference between funds that have “cleared” (or are collected), and funds that are available for use. Banks are required to make funds available for use within a few days of the deposit of checks, even though the funds often are not actually collected until nearly two weeks after the checks are deposited. The second type of scam that has been reported by other states involves the collection of a divorce settlement that has been allegedly reached with the scammer’s ex-husband. The scammer informs the lawyer that she is currently on assignment in a far eastern country and has an agreement for the husband to pay her several hundred thousand dollars, plus legal fees. The rest of the scam proceeds in a manner essentially similar to the judgment collection scam outlined above, and involves the deposit of a forged cashier’s check into the lawyer’s client trust account and the wiring of the client’s share to a foreign bank. Attorneys are warned that if the proposition appears too good to be true, it probably is. One should always be extremely wary of email communications from anyone you don’t know. Finally, it is extremely important that lawyers know the difference between available funds and collected funds
The West Virginia State Bar is seeking candidates for the position of Judge of the Court of Claims. The State Bar Board of Governors will nominate three (3) lawyers and will submit these names to the Speaker of the House and the President of the Senate for appointment to the Court. The term is for six (6) years. A minimum of ten (1 0) years’ experience as a licensed attorney is required. A full description of qualifications can be found in W.Va. Code Section 14-2-4 and 14-2-10, and compensation is provided for in W.Va. Code Section 14-2-8. This position involves hearing and deciding claims filed against state agencies and the Crime Victims Fund. The main offices of the Court are at the State Capitol and the position requires travel throughout the state to attend hearings. Some administrative law, mediation, or other judicial experience would be beneficial.
If you qualify for appointment, and would like to be considered for nomination, please send your resume, with any supporting information and/or letters of reference, to Anita R. Casey, Executive Director, The West Virginia State Bar, 2000 Deitrick Blvd., Charleston, WV 25311 or firstname.lastname@example.org. Nominations must be received by midnight, December 31, 2016.