Don’t Trust Just Verify

Similar lapses drew a public reprimand of North Carolina attorneys described in the Summer 2023 Journal

Jeremy Clayton King of Greenville was reprimanded by the Grievance Committee. King initiated a wire transfer of entrusted funds without verifying the instructions with the lending institution. The wiring instructions he followed were fraudulent. King did not supervise his nonlawyer staff in connection with the wire transfer. As a result of the wire transfer, $124,160.43 was wired to a fraudster. King had to replenish all those funds.

Richard M. Morgan of Wilmington was reprimanded by the Grievance Committee for initiating multiple wire transfers of seller proceeds in real estate transactions without verifying with the sellers the authenticity of the wiring instructions. In each instance, the instructions Morgan followed were fraudulent. As a result of the wire transfers, $573,451.48 was wired to fraudsters. Morgan had to replenish all funds.

William H. Morgan Jr. of Elizabethtown was reprimanded by the Grievance Committee for initiating a wire transfer of seller proceeds in a real estate transaction without verifying the instructions with the seller. The wiring instructions Morgan followed were fraudulent. Morgan did not supervise his nonlawyer staff in connection with the wire transfer and did not immediately self-report the misappropriation to the State Bar. As a result of the wire transfer, $100,150.30 was wired to a fraudster. The entire amount was eventually recovered.

(Mike Frisch)