Lawyer Scams and How to Avoid Them:Dan Pinnington’s Show notes

Ride the Lightning podcast

Feb 4, 2014

3

2,858

3

423 798

57

96

6

2

2

5 (DE)

33 (CT)

58604

872

8

36

144

19

Hawaii: 26

8

110

314

31 20

53

51 (MD)

102 (MA)118

62

31

10

2037

114 (NJ)

229

50

16

101

30

44

105

16 (RI)8862

297

11 (VT)

8

35

101

467

34

45 (DC)

17 (NH)

10 (ME)

16

6240

Where emails to fraudinfo@lawpro.ca originate*

*based on approximately6,800 reports emailed to us fromJanuary 2011 to December 2013

2

3

EuropeUK: 43 Germany: 43France: 14 Spain: 10Holland:16 Italy: 17Croatia:2 Bulgaria:3Ukraine:7 Turkey:4Slovakia:5 Finland: 7Norway:3 Sweden:3Poland: 6 Portugal: 9Czech:3 Cyprus: 5Hungary: 3 Romania: 6Iceland:2 Belgium: 8Denmark:2 Russia:1Macedonia:1 Lithuania:2Austria: 3 Switzerland: 9Greece:1 Serbia: 2Bosnia:1 Ireland: 7Luxembourg: 4 Estonia: 1Monaco: 1 Latvia: 1

The AmericasMexico: 15 Argentina: 9Panama: 2 Barbados: 3Bahamas: 5 Virg. Isles: 5Puerto Rico: 21 Chile:3Costa Rica:4 Uruguay: 6West Indies: 6 Venezuela: 4Dominican: 6 Trinidad:2Jamaica:1 Ecuador: 4Bolivia: 2 Colombia: 2St. Maarten:2 Caymans:1Brazil: 4 Nicaragua: 2Guatemala: 2 Honduras: 1Belize: 1

Middle East & AsiaFr. Polynesia:2 Bali:1Malaysia: 4 Hong Kong:1India: 4 Fiji: 2 Nepal:1 Philippines: 5Japan: 2 Indonesia:1Pakistan: 2 UAE:1Micronesia:1 Lebanon:1Saudi Arabia:1 Thailand:1Israel: 3 Nepal: 1Guam: 1 Cambodia: 1Egypt: 1

AfricaNigeria:1 Congo: 2Egypt:1 Zimbabwe:1South Africa: 3 Malawi: 1Ethiopia: 1

AntipodesAustralia: 30 New Zealand: 4

(41% Ontario, 5% rest-of-Canada,48% USA, 6% overseas)

Sample fake ID documents

Sample fake passports

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Sample fake documents

Sample documents

• A huge collection of fake IDs, documents and cheques given to lawyers by fraudsters: http://avoidaclaim.com/?page_id=2395

• Collaborative Law Participation Agreement fraud documents– Collaborative law participation agreement: http://avoidaclaim.com/wp-

content/uploads/2011/08/Masaru-Collaborative-Agreement.pdf– Divorce decree: http://avoidaclaim.com/wp-content/uploads/2011/08/Masaru-

Divorce-Decree.pdf– Settlement agreement: http://avoidaclaim.com/wp-

content/uploads/2011/08/Masaru-Settlement-Agreement.pdf– “I’m sorry, I’m paying” letter http://avoidaclaim.com/wp-

content/uploads/2012/02/Brewer-cheque-cover.jpg

Sample documents (cont.)• Payment receipts http://avoidaclaim.com/wp-content/uploads/2011/10/Chao-

PHILIP-RECEIPT1.jpg• Verifications of identity http://avoidaclaim.com/wp-content/uploads/2011/10/DLC-

Solicitors.jpg• Company registrations http://avoidaclaim.com/wp-content/uploads/2011/10/DVT-

TRADING-LTD.-REGISTRATION.jpg• Invoices http://avoidaclaim.com/wp-content/uploads/2011/10/Liu-Lankom-

invoice.jpg• Bank statements http://avoidaclaim.com/wp-content/uploads/2011/10/Kazuhiro-

proof-of-funds.jpg• Powers of attorney http://avoidaclaim.com/wp-content/uploads/2011/10/Liu-

Lankom-POA.jpg• Commercial letter of agreement: http://avoidaclaim.com/wp-

content/uploads/2012/06/Burger-agreement.jpg• Signed retainer agreement: http://avoidaclaim.com/wp-

content/uploads/2012/04/Zimmerman-retainer.jpg

Sample fake checks

Examples of multiple contacts

• Sample of a long, detailed back and forth email conversation with a fraudster http://avoidaclaim.com/?p=3052

• Another ongoing fraud conversation, this one with a voice recording http://avoidaclaim.com/?p=1780

The common red flags

• Initial contact email is generically addressed (e.g., “Dear attorney”) and BCC’d to many people.

• The name in the sender email address and name in the body of the email are different.

• Sender email address is different from email address mentioned in body of the email.

• Client uses one or more email addresses from a free email service (e.g., Gmail,MSN, Yahoo!), even when the matter is on behalf of a business entity.

The common red flags (cont.)

• Client raises issues of conflicts or payment of a retainer.

• Domain name used in personalized email address or website was recently registered (check at WhoIs.net).

• IP address in metadata of email indicates sender is in a geographic location that is different from where he/she claims to be.

• Client is new to your firm.• Client is in a distant jurisdiction.

The common red flags (cont.)

• Client shows up and wants the matter completed around banking holidays.

• Client says they prefer email communication due to time zone differences.

• Client provides only a cell number.• Client is in a rush – and pressures you to “do the

deal” quickly.• Client and others involved don’t seem concerned

if shortcuts are taken.

The common red flags (cont.)• Client is willing to pay higher-than-usual fees on a

contingent basis from (bogus) funds you are to receive.

• Despite the client stating a lawyer is needed to help push for payment, the debtor pays without any hassle.

• Cheque or bank draft arrives at your office in plain envelope and/or without covering letter.

• Cheque is drawn from the account of an entity that appears to be unrelated (i.e., a spousal arrears payment from a business entity).

The common red flags (cont.)

• Payment amounts are different than expected or change without explanation.

• Client instructs you to quickly wire the funds to an offshore bank account based on changed or urgent circumstances– E.g., health issues, sick child

• Some or all of the payment is going to third party that appears unrelated to the matters.

Due diligence on a fraudster

• Google– Crosscheck/verify names, telephone numbers, email

addresses, message text, URLs etc. – Search text with double quotes

– Check addresses on Google Maps– Google image search

• Verify ID is legitimate– Local lawyer, online search or pixelization

• Visit property• Check domain registrations (whois.net)

More information on fraud

• Check confirmed names of fraudsters and see samples of real messages and documents from fraudsters on the AvoidAClaim.com blog

• Use LAWPRO’s Fraud Fact sheet to educate your firm staff and lawyers about these frauds and the red flags to watch for

• Report suspicious matters to fraudinfo@lawpro.ca• See more info on fraud at www.practicepro.ca/fraud

Contact info

Dan PinningtonVice President, Claims Prevention & Stakeholder RelationsLAWPRO, Toronto, Ontario(416) 598-5863 or 1-800-410-1013

dan.pinnington@lawpro.caLinkedIn: Dan PinningtonTwitter: danpinningtonGoogle+: Dan Pinnington

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