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Category: Blog

Beyond the Nigerian Email Scam

August 21, 2008

If you are reading this, you most certainly have at one time received an email from the sister-in-law to the Finance Minister of Nigeria (or someone like her), telling you they have $xx million in a bank they need to get out and you can help and get 10% (or some incredible number).  The whole idea is to get you to accept a check from them, to show good faith.  Once you are CERTAIN enough time has passed for the check to clear, you send them back some amount.  Months later, you find their check was phony and your account has been debited, leaving you out the amount you sent them. This is the Nigerian Email Scam.

Being in the collection and bankruptcy biz, we have been receiving the new Asian Email Scam messages.  These entreat us to represent XYZ Shanghai Company (or someone) who is owed $xxx,xxx from a US company and they offer us a piece of the action to collect it.  The US company is, we are told, afraid to send a check overseas (or some similar excuse).  That is what we do, right?  Collect money.  So we are interested.  They will even pay a retainer and pay us hourly if we want.  We are already sensitized to possible scams, so we look closely.  We ask questions.  They have invoices.  The email address for the sender looks like the XYZ domain (although when we look closely, perhaps the email domain for the alleged Accountant from XYZ Shanghai Company Ltd is www.yyzcoshanghai.com, rather than the real www.xyzshanghaicoltd.com.  Pretty subtle, huh?

In any event, there is almost no way to be sure!  The idea is that the US “debtor’s” contact information could be a confederate of the scammer.  They could argue a bit or willingly agree to pay the huge sum, sending us a check.  We could deposit the check and wait several days, even checking with the US company’s bank to make sure it went through their account.  We would feel confident it has cleared and we could send a check (most likely a wire) to XYZ Company in Shanghai.  Weeks later, we would get that fateful notice that the US debtr’s check was fraudulent and our account has been charged back.  Gulp.

I wonder whether insisting the US company pays by wire would be enough protection.  Can someone send a fraudulent wire that can be reversed?

Every collection we make and every check I sign, I look to see if it is a regular client/forwarder or whether the collection was too easy for a large amount.  Or if there is anything unusual about it.  It adds a whole new dimension to this business.

Get out there and volunteer!

August 13, 2008

I’m sure that’s a pretty strange title for a post on a law blog.  But today I was reviewing where I spent my time in the last several days.  I found that a good bit of my time was spent on volunteer activities.  I’m not blowing my own horn, but sharing how I think those sorts of things help me to be a better lawyer, a better businessperson, a better person in general. 

I chair the board of Trustees of our Multiple Sclerosis Society Chapter.  Many of our friends and clients know my wife, Ellie, has MS and has had for more than 30 years.  So it makes me feel good to be able to help raise money to help people and families coping with MS.  I volunteer with my local Bar association, on the Finance Committee.  I get to use my financial and other skills to help an organization that spends tens of thousands of dollars a year helping people who can’t afford lawyers or who otherwise get impacted by the legal system and don’t know what to do.   I just spent three days with the leadership of the Commercial Law League of America, where I was the facilitator for their annual Strategic Planning process.  It was something I know how to do and they tell me it went well for them.  I felt good about working with them through the successful process.  This is an organization that has helped me grow our business over the years and, thereby, to put kids through college, so I feel indebted to the group.  Helping it to survive and thrive for another 113 years makes me feel good.

There are more, but I’m probably overdoing it.  The point is that I learn things by helping these organizations and I feel good about helping them.  It is different than practicing law and fighting with people.  I encounter people who are in need of help and I can make a difference.  That all gives me a better perspective on my life.  It works for me and it works for others.  That’s why I say “get out there and volunteer!

It is getting busy out there for credit and collection people!

August 4, 2008

I’m probably not telling you anything you don’t already know, but it is really heating up out there. I have noticed a definite up-tick in new creditor activity placed with our firm, even more so in the last 3 months. It is palpable. The other scary thing is that every finance or banking person I talk to says the same thing: They don’t see the end, or even an upturn. I’ve always felt that we in the Creditors’ Right business can see it coming about 6-12 months ahead of time. If that’s the case, there are some long-term problems out there. What are other people seeing?

50-State Judgment Renewal Timing

August 1, 2008

A couple of weeks ago, a client whose national recoveries we manage asked if I knew where there was a list of the judgment renewal deadlines in the fifty states.  I didn’t have one handy, but offered to search.  I posted a question on the NARCA listserv and offered to share the results.  I began to receive state-by-state information.  The client offered to create a spreadsheet from the information we gathered.  Thanks to all who responded and thanks to Ann Romanelli for doing the heavy lifting.  As promised.  Click below to access the current 50-State Judgment Renewal Timing list.  We haven’t researched any of the answers, but they came from what should be reliable sources.  If you have comments or corrections, please post them here.

50-State Judgment Renewal Timing

Consignment Question

July 30, 2008

Recently, we published our Client Advisory, including an article on Consignments.  One of our colleagues asked:

Fine article. Question, if you don’t mind: Does the authenticated notification required to be sent by a consignor pursuant to UCC Sec. 9-324(b)(2) need to be sent to other consignors of goods provided to a common consignee for the filing consignor to retain a first priority security interests in its own consigned goods? I would not see why that would be necessary but understand that is common (and burdensom) practice in the jewelry industry. Many thanks.

Without researching it, I think that, as 9103(d) makes a consignment a PMSI and as 9324(b)(2) sets out the steps to deal with a conflicting security interest in those types of collateral, one would have to follow 324 for the protections. To do otherwise, would allow “secret” PMSI’s against conflicting liens, something the Code gets away from. Haven’t seen a case and haven’t researched that point.

Anyone have different answer?

 

 

 

Pittsburgh Seminar on Judgment Enforcement

One of our top experts on Judgment Enforcement and collections, Nick Krawec, will be participating in a seminar on September 12 2008 in Pittsburgh.  If you have an interest in this topic, Nick is one of the best!

Bob Bernstein

To Register:

 

Seminar ID: 360408 Your priority code is: 306960. Please mention this code when registering. Register online at:

 

Lorman or By phone: Call our Customer Service Department at (866) 352-9539By e-mail:

 

customerservice@lorman.com

Welcome to our law blog

Our new law blog allows us to have more interaction with our clients and colleagues, as well as with those interested in our topics. Because of the fields of law in which we practice (Creditor’s Rights, Bankruptcy & Restructuring, and Business Law) most of our posts and discussion will be around those topics. However, because we are people with lives beyond the practice, well also allow ourselves to engage others on topics about life, family and the world. Naturally, our moderator (me at first) will have the right to limit, redirect or refuse postings and comments, but we will try to be as open-minded as possible along the way.

We are interested in your thoughts, ideas and comments. So, let the games begin!