Attention Ohio Lawyers
From the web page of the Ohio Supreme Court:
The Supreme Court of Ohio Office of Attorney Services issued awarning today about an Internet scam affecting Ohio lawyers. Multipleindividual attorneys and law firms have contacted the Supreme Courtabout the scam.
Here’s how the scam works: AnOhio lawyer receives an e-mail purportedly from another lawyer forcollection of a debt. A follow-up e-mail arrives from the supposeddebtor (who is also the client), seemingly legitimate, who sends abogus check for payment. The Ohio lawyer is instructed to pay the debtby wiring some of the funds to the creditor and to keep a portion ofthe funds as payment for his/her attorney fees. The Ohio lawyer thendeposits the check in his/her Interest on Lawyers Trust Account(IOLTA), wires funds to the creditor, and retains the agreed uponamount as attorney fees.
Meanwhile, the check goes throughinternational banking channels until it’s eventually discovered thatinsufficient funds are available in the account to cover the amount.The bank debits the IOLTA for the amount of the returned check, whilethe lawyer has wired “good,” client funds to the purported creditor.
Theproposed client is typically an actual Asian company—although thescammers have no connection with the company. Also, sometimes thescammers use real lawyers’ names in the initial e-mail.
Attorneysare advised to exercise caution when approached by unknown attorneysseeking to enter into financial transactions involving foreignentities. To report a suspected online crime, contact the FBI at www.ic3.gov.
SusanChristoff, Attorney Services director, said bad checks deposited inIOLTAs, however small, can have a negative impact on the delivery oflegal services for those who need them most.
Each Ohioattorney – or the attorney’s employer – that escrows funds of othersthat are nominal in amount or held for a short period of time must havean IOLTA. Interest from IOLTAs funds the Ohio Legal AssistanceFoundation, which distributes these funds to the state’s legal aidsocieties to provide free legal aid to the poor.
(Mike Frisch)