I have a client who is an attorney. He had $54,000 of clients money in a trust account. Then he got scammed. A supposed client gave him a fraudulent cashiers check for $380,500.
He went to deposit it and the bank deposited right away and made it available for him to spend. They did not do any inquiries. Literally nothing. The phony client told my client to
wire money to about 5 people the next day which my client did. Low an behold he now has gone from $54,000 balance to a negative $123,000 for a loss of $177,000 in the trust account.
I know you are saying to yourselves "How can this happen" He did not even run it by me as to any of this going on because I would have told him to STOP! DONT DO ANYTHING!
Anyway what will his true casualty loss be? Will it be the $54,000 that was in his bank account before all of this happened? He had to come up with that $54,000 with his personal money right away.
Or will his casualty loss be $177,000 which will be the $54,000 plus the negative account balance of $123,000. The bank is demanding this money from him which he has not given them to cover this.
He went to deposit it and the bank deposited right away and made it available for him to spend. They did not do any inquiries. Literally nothing. The phony client told my client to
wire money to about 5 people the next day which my client did. Low an behold he now has gone from $54,000 balance to a negative $123,000 for a loss of $177,000 in the trust account.
I know you are saying to yourselves "How can this happen" He did not even run it by me as to any of this going on because I would have told him to STOP! DONT DO ANYTHING!
Anyway what will his true casualty loss be? Will it be the $54,000 that was in his bank account before all of this happened? He had to come up with that $54,000 with his personal money right away.
Or will his casualty loss be $177,000 which will be the $54,000 plus the negative account balance of $123,000. The bank is demanding this money from him which he has not given them to cover this.