Business loan fraud using the name William Brooks
Date First Reported: July 2018
Primary Name Associated: William Brooks
Description of Potential Fraud:
Three Ontario firms notified us that they received an email from the purported William Brooks looking to retain them with regards to a breach of a business loan agreement.
This is a classic bad cheque scam 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. 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 contact email sent to the lawyer:
From: William Brooks [email protected]
Sent: July 8, 2018 5:01 PM
I will need your firm assistance in a debt collection.
Please advise if this is something you can handle.
Replying to the email brought this response:
Thanks for your email.
The name of the debtor is DENNIS ROBERT.
I loaned Mr. Dennis Robert a friend i have known for several years, $1,950,000.00 on an interest rate of 7.75% for two years fixed and he has refused to pay me back.
Mr. Robert was building an hydraulic drilling rig and ran out of funds, that’s the reason why i loaned him the funds.
I gave him the loan on 12th March, 2015 and he was suppose to pay me back on 12th March, 2017.
We signed a promissory note which i can provide upon demand.
Kindly advise a good time for me to call you or you can call me on (604) 449-9480.
Thanks for your time and effort.
I await your response.
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.