Personal injury firm sues TD Bank for loss in fraud scheme
Law Firms
Personal injury firm sues TD Bank after loss in fraud scheme
August 29, 2024, 12:19 pm CDT
A personal injury law firm has filed a lawsuit blaming TD Bank for its loss of about $146,000 in a check fraud scam. (Image from Shutterstock)
A personal injury law firm has filed a lawsuit blaming TD Bank for its loss of about $146,000 in a check fraud scam.
The July 23 suit, removed to New Jersey federal court Monday, alleges that TD Bank should have warned New Jersey firm Nagel Rice about the cashier’s check that it deposited from a bank called BBVA because of a history of fraudulent checks claiming to be drawn from that institution.
Law.com has the story.
According to the suit, Nagel Rice received a cashier’s check for $148,950 from a purported client supposedly drawn from BBVA and deposited it in the firm’s account with TD Bank on Nov. 23, 2020. Nagel Rice wired $146,250 to the purported client’s bank account two days later. The letter informed Nagel Rice that a cashier’s cheque had bounced. Nagel Rice lost the entire amount wired to the client.
The suit alleges that the bank was negligent because of its failure to warn, and it violated a contractual banking relationship in which it agreed to safeguard Nagel Rice accounts.
Law.com described Nagel Rice as a high-profile personal injury firm that has many top verdicts and settlements in a list published by the New Jersey Law Journal.
Many other firms have lost money in similar scams, including several in New Jersey. The FBI warned lawyers in 2010 to be wary of clients who only contact them by email, particularly if they are located in foreign countries. The firm retains a fee, and wires the remainder to the supposed client. Later, the firm discovers that the check bounced.
