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03 May 2024 / Mary Young
Issue: 8069 / Categories: Features , Procedure & practice , Fraud
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Smoke & mirrors in the world of fraud litigation

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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

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NEWS
Mr Justice Nicklin’s decision to order costs on an indemnity basis may be a ‘significant win’ but it’s still ‘far from game, set and match’ for Associated Newspapers, a former costs judge has said
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners
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