Man accused of defrauding more than 100 lawyers is convicted of fraud
A federal judge in Pennsylvania has convicted a Toronto man accused of defrauding more than 100 lawyers out of $23 million.
U.S. District Judge John Jones III convicted Henry Okpalefe, 49, on charges of conspiracy to commit mail fraud, wire fraud and money laundering, the Legal Intelligencer (sub. req.) reports. A press release is here.
According to prosecutors, Okpalefe used fake email accounts to contact lawyers and law firms in the United States on the pretense of seeking representation. Okpalefe’s fake client would claim a person owed him money, and a person posing as the debtor would send a check to the law firm. Check amounts listed in the indictment ranged from $244,000 to nearly $740,000.
The law firm would then deposit the check into its IOLTA account and wire funds to an offshore account supposedly belonging to the client. The money would be withdrawn before the fake check came back as counterfeit.
According to the press release, the U.S. Postal Inspection Service in Harrisburg, Pennsylvania, “has reason to believe that this scheme is ongoing.” Postal inspectors encourage anyone receiving a check in the mail to work closely with banks to understand when a check has been verified as legitimate, even if funds are immediately made available on deposit.
