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Smoke & mirrors in the world of fraud litigation

03 May 2024 / Mary Young
Issue: 8069 / Categories: Features , Procedure & practice , Fraud
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A cautionary tale from Mary Young, showing that anyone can be duped—including lawyers
  • A discussion of Verdi Law Group PC v BNP Paribas [2023], in which the claimant law firm fell for a scam.
  • Firms need to be more cautious than ever in all their dealings—when agreeing to act, taking instructions and verifying client account details.

It is not uncommon for solicitors’ firms to be parties to litigation (as opposed to representing parties to litigation), even if breach of contract and/or negligence claims are disregarded. In recent years we have seen Dechert brought into the proceedings involving its former client, giving rise to wide-ranging decisions about issues such as the iniquity exception to privilege.

There was a spate of claims involving solicitors’ firms between 2012 and 2014 relating to property hijack cases, where solicitors had inadvertently been involved in fraud relating to the sale and purchase of real estate, where the purported vendor was an imposter who had stolen the identity of the genuine owner of the property. The combined appeals of P&P Property and Dreamvar

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