Lawyers across Ohio—and increasingly here in the Cincinnati area—are being targeted by a sophisticated email scam that can jeopardize both client trust accounts and professional licenses. The scheme is convincing, fast-moving, and designed to exploit an attorney’s ethical obligations and sense of urgency.
How the Scam Begins
The initial contact often looks routine and harmless. A lawyer receives an unsolicited email requesting contingent representation, such as:
“I have a contract, and the other party won’t pay.”
The “client” may claim to be located out of state or overseas but insists the matter is straightforward. Documents are provided. The story appears credible. There is pressure to act quickly—but nothing that immediately raises red flags.
The Trap: A “Certified” Settlement Check
Soon after engagement, the lawyer receives what appears to be a certified or cashier’s check, purportedly representing a settlement or payment from the opposing party. The instructions follow quickly:
“Please deposit the check into your trust account, keep your contingent fee, and wire me the balance immediately.”
If the lawyer hesitates, the tone often escalates. Some scammers threaten to file a grievance or report the lawyer to the bar:
“You have guaranteed funds. You must pay me now. If you don’t, I will contact your bar association.”
Why This Is So Dangerous
The danger lies in the timing mismatch between check clearing and wire transfers:
- “Certified” checks can be counterfeit, even when they initially appear to clear.
- A bank may not dishonor a fraudulent check for several days—or longer.
- Wire transfers are immediate and irreversible.
Once the wire is sent, the funds are gone. When the check is later discovered to be fraudulent, the lawyer’s IOLTA account may be overdrawn.
Ohio Lawyers Face Additional Consequences
In Ohio, an overdraft to an IOLTA account is not just a banking issue—it is an ethics issue. Lawyers are required to notify the Supreme Court of Ohio of any IOLTA overdraft, triggering potential disciplinary scrutiny.
What began as an email scam can quickly turn into a professional liability nightmare.
Best Practices to Protect Your Firm
Every Ohio law firm should have clear, non-negotiable safeguards in place:
- Adopt a strict “wire in – wire out” policy.
Never wire funds unless the source funds were themselves received by wire. - Do not rely on the appearance of a cleared check.
Availability of funds does not mean final settlement. - Control disbursement terms in your engagement agreement.
The agreement should clearly state that the lawyer determines when and how funds are disbursed. - Trust your instincts.
High-pressure tactics, threats of grievances, and demands for immediate wiring are major red flags.
A Final Word of Caution
These scammers are highly sophisticated. Their stories are convincing, detailed, and constantly evolving. There is no single profile to watch for—only patterns of pressure, urgency, and demands for immediate disbursement.
Often, the best engagements are the ones not accepted.
If you have questions about this scam, IOLTA compliance, or protecting your firm, feel free to call 513-300-4012 at any time.
Draft Email
Subject: Engagement and Fee Structure
Thank you for contacting me regarding potential representation.
Any engagement of this firm must be pursuant to a written Engagement Agreement, which I would be pleased to prepare and forward for your review. Our current hourly rates are $___ for partner-level attorney work, $___ for associate attorney work, and $___ for paralegal work. We issue detailed monthly invoices, which are due upon receipt.
The firm requires an advanced retainer for all engagements. Retainers are deposited into our trust account and applied to fees and costs in accordance with the Engagement Agreement. The amount of the retainer is determined by the scope and nature of the representation, which we would discuss before proceeding.
Please note that the firm accepts only commercial bank–originated wire transfers of U.S. funds for all payments, including retainers, monthly invoices, and any settlement proceeds. The firm does not accept checks, cashier’s checks, certified checks, ACH transfers, or any other form of payment. If an adverse party proposes payment by any method other than a qualifying wire transfer, the firm will not accept such payment under any circumstances.
If you wish to proceed and these terms are acceptable, please let me know and I will prepare and forward a formal Engagement Agreement outlining these terms and any additional conditions of representation.
We appreciate your interest in our firm and welcome the opportunity to work with you.
We welcome the opportunity to represent you. Thank you.