A case currently before the Ontario courts highlights the importance of fraud and cybercrime awareness for both seasoned solicitors and newly-called lawyers.
In Dentons Canada LLP v Trisura Guarantee Insurance Company 2018 ONSC 7311, an associate from the applicant law firm attempted to transfer over $2.5 million to clear a mortgage on his client’s property. Instead, he was duped into transferring most of the funds to a fraudster.
In the written endorsement, Justice Carole J. Brown reviewed the agreed upon facts. The firm received instructions on December 28, 2016 from the mortgage holder, Timbercreek, and the transaction closed two days later on December 30. However, the firm did not initiate the wire transfer until after New Year’s Day, on January 3, 2017.
On January 3, 2017 the firm received emails purportedly from Timbercreek representatives requesting that the funds be wired to an international account, as Timbercreek’s Canadian account was being audited. The firm telephoned Timbercreek and left a voicemail to confirm the instructions but the representative did not respond.
The firm then received further emails, purportedly from Timbercreek, which included the international account information for a third-party account in the name of Yiguangnian Trade Co. Ltd. in Hong Kong. The firm requested letters of authorization from Timbercreek and Yiguangnian, which were provided. The firm then transferred the funds to the Yiguangnian account.
Please log in to read the full article.