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Legal News: BigLaw firm Sued for Alleged Fraudulent $3M Transfer

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BigLaw firm, Holland & Knight, is facing a lawsuit alleging that it failed to prevent the transfer of more than $3 million to a fraudster’s account in Hong Kong. The lawsuit, filed in June in Utah state court, was removed to federal court this week, the American Lawyer reports.

The firm is accused of failing to investigate after the fraudster intercepted emails regarding a stock sale, posed as the seller, and instructed the law firm to wire $3.1 million from the stock buyer to another account. The new fraudulent account was identified as Wemakos Furniture Co. Limited.

The suit alleges the firm and the transfer agent, a second defendant, should have been on notice that the accounts weren’t legitimate, given inconsistencies in documents. Nor did the defendants contact the stock sellers by phone to verify the emails, the suit says.

The suit alleges breach of fiduciary duty and breach of contract.


Source: https://www.abajournal.com/news/article/biglaw-firm-sued-over-wire-transfer-to-fraudsters-account

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