Breach of IP agreement fraud using the name Xiang Lee
Date First Reported: June 2018
Primary Name Associated: Xiang Lee
Description of Potential Fraud:
Two Ontario firms notified us that they received an email from the purported Yoshiyuki Ishibashi looking to retain them with regards to a breach of a copyright agreement.
This appears to be a bad cheque scam (likely impersonating a real company) that presents as legal matter requiring the assistance of a lawyer. In this scam lawyers will be duped into wiring real funds from their trust accounts after depositing a fake cheque received as payment from the debtor (who is part of the fraud).
See our Confirmed Fraud Page for more of an explanation of how these frauds work and other names associated with it , and our Our Cybercrime and Bad Cheque Scams Fraud Fact Sheet lists the red flags of a bogus legal matter that is really a fraud.
Here is the initial email received by the lawyers:
From: Xiang Lee [mailto:[email protected]]
Sent: June 22, 2018 1:10 AM
Subject: Intellectual Property agreement
We have Intellectual Property agreement dispute.
Please advise if you are interested, we shall forward you the agreement for your review and the other party information for your conflict check.
Please reply with all urgency,
Replying to the email brought this response:
Thanks for your mail below is the other party information who has not settled the payment of $850,000.00 according to the termination term in the intellectual property agreement we both have signed, we wanted it out of court settlement, they keep promising and always fail to settle their debt, below is our affiliated company information to run your conflict check. We shall forward it to you for your review if you have no conflict.
The opposing party information:
400 March Rd, Ottawa,
ON K2K 3H4, Canada
We have explored all avenues to resolve this issue amicably,unfortunately, we have not progressed as expected, let us know your retainer fee and send us the retainer agreement so that we can proceed immediately.
We are looking forward to working with you on this matter, have a nice day.
How to Handle a Real or Suspected Fraud
If you have been targeted by any of these frauds, please forward any of the emails and supporting documents that you have received to [email protected]. We use this information for the warnings we post on AvoidAClaim. We do not disclose the names of firms that have provided us with information.
Ontario Lawyers - Call LAWPRO
If you are an Ontario lawyer acting on a matter that you suspect might be a fraud, call LAWPRO at 1-800-410-1013 (416-598-5899). One of our Fraud Team members will talk you through the common fraud scenarios we are seeing and help you spot red flags that may indicate you are being duped. This will help you ask appropriate questions of your client to determine if the matter is legitimate or not. If the matter you are acting on turns out to be a fraud, we will work with you to prevent the fraud and minimize potential claims costs.
What can you do to help put a stop to the fraud attempt?
You can simply stop replying to the fraudster’s emails or inform them that you suspect fraud and will not act on the matter. You can report the fraudsters’ email addresses to the email hosting company. If you have a fraudulent cheque you can destroy it or send it to the fraud department of the financial institution it is drawn upon. In Canada, you can report the fraud to the Canadian Anti-Fraud Centre.
We are often asked if it is worthwhile to report the fraud attempt to the police in the hopes of helping catch the fraudsters. You can certainly report the fraud to your local or federal law enforcement agencies, but unfortunately it is often difficult, expensive and time consuming for them to attempt to shut down these online fraud perpetrators (though there are some successes).
What if the fraud has been successful?
If you have been successfully duped, please immediately notify LAWPRO as there may be a claim against you. See the LAWPRO website for instructions on how to report a claim.
For more immediate updates on fraud and claims prevention, subscribe to the email or RSS feed updates from LAWPRO’s AvoidAClaim blog.
Fraud Fact Sheet
More fraud prevention information and resources are available on the practicePRO Fraud page, including the Fraud Fact Sheet, a handy reference for lawyers and law firm staff that describes the common frauds and the red flags that can help identify them. To proactively prevent trust account shortfalls and malpractice claims, LAWPRO encourages firms to teach their lawyers and staff about fraud and how to recognize fraud attempts.