FRAUD ATTEMPTS TARGETING FAMILY LAW ATTORNEYS IN OKLAHOMA

The individual asks for your help in collecting a judgment the individual allegedly was awarded in a divorce action against the ex-spouse.  The individual offers you a very large percentage for doing very little work.  The individual asks you to accept payment on the judgment and deposit the money in your trust account.  Then the individual pressures you into disbursing the individual’s agreed share of the funds before the funds have cleared the bank. 

Be wary of any email from an unknown person seeking your assistance, offering to pay too much money for a simple transaction, and rushing the process to be paid their share.  a new client and send a corporate or cashier’s check for deposit.  Then, they will claim they have sent too much and ask for you to wire back the overage.  They will be in a hurry to get the overage back and request that you rush the process.  The fraud will be complete before the bank can notify you that the check was counterfeit.

RED FLAGS:

1.      Large cashier’s or corporate check from a new client  or alleged ex-spouse on whom you have little information

2.      Amount of fee not consistent with legal work required

3.     Request that you return funds by wire

4.      Request that wire be directed outside the U.S.

5.      Use of TDD hard of hearing relay or lack of any phone contact

6.      Urgency for any and all transactions

WARNING:  FRAUD ATTEMPTS TARGETING LAW FIRMS IN OKLAHOMA

The Oklahoma Bankers Association has posted the following warning involving individuals targeting law firms.
A typical case would involve assisting someone with a trust account or the purchase of property or a business.  The individual(s) will pose as a new client and send a corporate or cashier’s check for deposit.  Then, they will claim they have sent too much and ask for you to wire back the overage.  They will be in a hurry to get the overage back and request that you rush the process.  The fraud will be complete before the bank can notify you that the check was counterfeit.

RED FLAGS:
1.     Large cashier’s or corporate check from a new client on whom you have little information
2.    Request that you return funds by wire
3.    Request that wire be directed outside the U.S.
4.    Use of TDD hard of hearing relay or lack of any phone contact
5.    Urgency for any and all transactions

Robert C. Margo was elected Chairman of the Board at Oklahoma Attorneys Mutual Insurance Company’s recent Annual Policyholders Meeting held June 5, 2009.  Mr. Margo replaces Jo Anne Deaton who completed a successful three year term as Chair.

The following Directors were elected to three year terms at the meeting by vote of the policyholders:
                Phillip J. Eller
                James A. Jennings
                Ronald Main
                Robert C. Margo
                John H. Wynne

   How many times we have heard an insured exclaim, "I would have been much better off having never represented that client"! Certainly, they are better off in terms of avoiding not only the aggravation of dealing with the problem client, but also in avoiding the resulting malpractice claim.
 

   Our experience indicates malpractice claims can be avoided if pre-established criteria are used to screen out potential problem clients. Without a doubt, problem clients take on certain characteristics which are identifiable early on, possibly even prior to representation. Recognition of the following potential problems in advance and declining representation will help avoid malpractice claims:
* Clients with unreasonable attitudes and concerns over legal fees.
 

   Our experience indicates the number of malpractice claims arising from disputes over legal fees is on the increase. Every attorney should bring up the subject of legal fees early on in order to gauge the clients reaction. This reaction will let the attorney know what to expect from the client in this area.
 

   A strong reaction from the client regarding the proposed fees makes it imperative for the attorney to reach a mutual agreement. In the absence of a mutual agreement, the attorney is better off without that particular client.
 

   It is sometimes possible early on to discern the client who has no intention of paying the fee (or at least the entire fee). This is, definitely an individual to avoid, as your losses will double. Not only will you provide free legal service, but also quite probably receive a malpractice claim when you attempt to press the collection effort.
*Demanding client.
 

   These clients are insatiable and easily recognized by the fact that they are already disgruntled. His/her problem is usually complex, yet in spite of this, they', place unreasonable time constraints on you. Their unhappiness often stems from poor prior service they received and they demand legal retribution.
 

   This particular client is best exemplified by the fact that they have been to numerous attorneys, none of which have been able to provide satisfactory legal service. This client is most dangerous and should be avoided.
*Uncontrollable client.
 

   This particular client may appear behind several faces. It may be the individual who is unreasonably demanding because of a complete lack of understanding of the legal system. Another possibility is the person who has totally unrealistic expectations about his/her case. Also, there is the individual who just simply cannot be controlled and is his/her own worst enemy, creating more obstacles than can be hurdled.
*Client seeking revenge.
 

   To this client, the value of the case has little, if any, meaning. They are driven more by a moral vendetta, not a legal remedy, and if they do not receive vindication they may seek it from their attorney.
 

   Obviously, the early stages of the attorney/client relationship are critical and many legal malpractice lawsuits can be avoided by screening out potentially troublesome clients. Remember, if you elect not to take on the representation of an individual, advise them in writing that the attorney/client relationship did not commence.
  

   Avoiding trouble is easier and less costly then getting out of trouble.

In addition to professional liability insurance, it is important to make sure that the firm's assets are insured. Buildings, computers, law libraries, furniture, artwork, accounts receivables, valuable papers and records, and even intangibles like loss of earnings caused by catastrophic events (fire or tornado), are critical items to have properly covered. An insured's loss to any of these items would cause economic struggles for the firm.

OAMIC, in collaboration with The Hartford, now offers a package policy providing various property and general liability coverages, which are specifically designed for law firms. Some of these coverages are unique with regard to a law firm's exposure, e.g. personal property of others including items of evidence and the law library.

An endorsement within the policy provides several incidental coverages (without additional charge). These are important to a professional office and include items like employee dishonest, forgery and alteration, extra expense due to interruption of utility services, personal property off premise, personal effects of employees on premise and lap top computers.

One of the difficulties in properly covering the various property loss exposures is placing exact insured values on some of the items such as accounts receivables, valuable papers and records, computers and media, and personal property of others. The insured value of these items typically changes from time to time and certain losses may not affect each of these items. This problem has been solved by placing these items under a blanket limit of $150,000. Additional advantages for this blanket limit are:
 

1. Full blanket amount available if a loss occurs to only one of these items, e.g. theft of computer equipment.
    
2. The extension of the blanket limit to these items may mean less values to insure under "personal property" (contents like furniture and equipment), which would result in significant premium savings.

An infinite number of "office package policies" exists in the marketplace and most are competitively priced. However, don't be fooled into thinking that all policies are the same. Many provide specific coverage only for "buildings" and/or "personal property" and do not address the other myriad types of losses that can occur, let alone those unique law firm exposures.

   It only makes sense to buy a competitive policy with broad coverage forms that are specifically designed for the law firm. Give us a call for more details.

The 27% dividend equates to a $1.4 million distribution to policyholders, thereby greatly reducing the net cost of their professional liability insurance. This year's dividend is the largest to date, surpassing the largest previous dividend by nearly $100,000. Over the past seven years dividend distributions total more than $7.7 million.

Our goal is to assure a consistent track record of policy dividend payments. Dividends cannot be guaranteed because they are dependent upon the year's financial results. However, solid, predictable claim results coupled with investment income that more than doubles operating overhead, and a strong financial base, exemplified by our policyholder surplus (retained earnings), have allowed us to meet our goal. This helps make insuring with OAMIC a mutually rewarding experience.

Occasionally your clients will need a court bond of one type or another. This could include fiduciary (personal rep, guardian/conservator, administrator/executor), injunction/TRO, lost instrument, replevin, supersedeas/appeal, small estate, creditor's refusal, or ERISA bonds.

You may have found yourself in the situation of being in the courthouse, discovering the need for a bond and not knowing where to turn or who to call. Now you can call us!

We have established a relationship and underwriting authority with a surety company (Bar Plan Surety & Fidelity Company) who specializes in court bonds for law firms and their clients. This specialization is important, especially if you have ever called a surety company or their agent, only to find that they really only have experience in contractors performance and payment bonds and are interested in this type because of the larger premiums involved.

We realize that timing is critical with respect to your bond needs. Our underwriting process is streamlined and typically bonds are issued within 24 - 48 hours. Rates are extremely competitive, significantly lower than the Surety Association of America's published rates. Fully collateralized court bonds receive a 50% credit.

If you need it faster and less expensive, give us a call. Don't forget your office can obtain a notary bond for $35.00.