Employee Injury or Unfair Dismissal Settlement Fraud
In this type of fraud the lawyer is retained to help collect on an employee injury or unfair dismissal settlement. The fraudster will claim that they are overseas, but the employer is in their jurisdiction. In the case of workplace injury scmas, a copy of the settlement agreement and identification will be provided. In the unfair dismissal scams, the fraudster will provide a story about how they were mistreated in the workplace and asks the lawyer to help them demand a settlement. T
A retainer agreement will be completed (usually electronically signed).The fraudster will offer excuses as to why they can’t pay the retainer fee upfront. They will ask that the lawyer deduct it from the settlement payment.
The “employer” will then send a cheque to the lawyer’s office for the amount of the settlement immediately after a demand letter is sent, or in some cases before the lawyer has even done anything. The lawyer will be asked to deposit it in the trust account, deduct any fees, and wire the rest to an overseas account. Of course, the cheque is fraudulent and the lawyer would then be left with a shortfall in the trust account.
Here is a list of names we’ve seen associated with this fraud. The date in brackets is the most recent notification we’ve received that the fraud is still active.
Barrington, Eddie [Aug 2011]
Charles, Stuart [Jan 2013]
Clark, Karen [March 2011]
Graham Jackie Lynn [October 2011]
Park, Michael [November 2011]
Rivers, Justine [Dec 2012]
Saito, Tatsuo [April 2013]
Sullivan Terry [October 2011]
Triestman, Gary [March 2011]
Yamomoto, Jeremiah [Jan 2013]