Advance fee fraudsters scammed a Texas law firm out of $182,500 by posing as a Japanese firm that needed help collecting overdue funds.
The firm alleges the Japanese company signed a contingent-fee agreement and advised the firm that one of its customers had agreed to make a partial payment of the amount outstanding.On Oct. 7, 2008, the firm alleges, it received a "Citibank Official Check" for $367,000, and the firm deposited it into its Interest on Lawyers Trust Account at Sterling Bank in Houston.
A Buckley, White, Castaneda & Howell "employee telephoned Citibank and verified that check number 310096829 in the amount of $367,500 was paid. The firm relied upon this unconditional representation in allowing a wire transfer of $182,500 to a supplier of [the Japanese company] in Hong Kong," the firm alleges in the petition.
On Oct. 10, despite Citibank's "unconditional representation," Sterling Bank informed the firm that the check had been returned as "counterfeit," the firm alleges in the petition. The firm alleges Sterling Bank drained the firm's IOLTA account — taking more than $100,000 — and took $77,000 from the firm's operating account to cover the wire transfer.
Howell says Sterling Bank tried to cancel the wire transfer, but it was too late.
Just goes to show, even lawyers can fall victim to greed and stupidity.
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