As R.E. Broker, I received and forwarded Fraudulent wire instructions

[John Wong]

Jurisdiction

California

[I am about to sue as R.E. purchasing Plaintiff but I am asking as the Broker/Defendant to anticipate the defense strategy and explore the strength of my suit]

As a real estate broker, I do 95% of my communications by google email, and my whole office never had problems, so we haven't had need for email security other than regular virus protection. By phone, I arranged a cash-purchase escrow cancellation for my purchasing client and told him I would email him the escrow's disbursement form in order to have his escrow money wired back to him (full purchase amount), and would deliver it to escrow after he filled it out. Received email with the filled out wire transfer form, which also said he had to leave for overseas unexpectedly, and can't be contacted by phone, but to wire the money to an account within the country to which he was going. It was an investment account he had there and would be awaiting the money.
The client never got the money.
I found soon after, my email was hacked and I had been messaging back and forth with an unknown party, and acted on fraudulent wire instructions. The money is irretrievably gone.

Is Intervening/Superseding Cause my defense? Am I not the victim as much as the client? is Hacker fraud the Cause for loss, not my negligence as the loss could not be foreseen?

Please tell it like it is - how should I direct my attorney to respond to the suit against me.

 

[ElleMD]

Assuming this is a serious and real situation, though I have my doubts anyone would wire money to an overseas account based on an email alone, you really need a lawyer involved.

 

[army judge]

I found soon after, my email was hacked and I had been messaging back and forth with an unknown party, and acted on fraudulent wire instructions. The money is irretrievably gone.

Is Intervening/Superseding Cause my defense?

Am I not the victim as much as the client?

is Hacker fraud the Cause for loss, not my negligence as the loss could not be foreseen?

Please tell it like it is - how should I direct my attorney to respond to the suit against me.

You should discuss what you know about this unusual bit of business.

You should then ask your attorney about your legal options.

There's much you don't know.

For instance, how did the alleged swindler know to "hack" your account?

Why didn't you, upon learning what the alleged swindler desired, endeavor to investigate and verify the swindler's demands?

You might be potentially liable because you properly failed in your due diligence.

Have a discussion with your attorney.
Ascertain your exposure.
Put in place safeguards, such as CEASE transacting business by email.
Even if you used a "so called secure" email server, the swindle would still have occurred absent better business practices.

 

[John Zong]

You should discuss what you know about this unusual bit of business.

You should then ask your attorney about your legal options.

There's much you don't know.

For instance, how did the alleged swindler know to "hack" your account?

Why didn't you, upon learning what the alleged swindler desired, endeavor to investigate and verify the swindler's demands?

You might be potentially liable because you properly failed in your due diligence.

Have a discussion with your attorney.
Ascertain your exposure.
Put in place safeguards, such as CEASE transacting business by email.
Even if you used a "so called secure" email server, the swindle would still have occurred absent better business practices.

Maybe I was targeted because I have almost the highest yelp ratings in the sub-region, which is primarily Chinese. My tech said I got a virus from a spam email which sounded like a real R.E. inquiry, but I didn't get a response when I replied. I think that's how they got my email password - I type it all day long.

The client is also Chinese, and I know that the country where the hacker has contact (Singapore) is mostly Chinese as well. So, when the client says he had to go to Asia, then asked me to send the money to Singapore, this is not unusual. I have done so several times myself to Hong Kong, Indonesia and Taiwan.

The hacker had set up filters on my google account so that all my clients mail went straight to trash and he was able to monitor the mail there, then copy and paste portions and resend to me with a mimicked address (yahoo69969 instead of yahoo69699) so that I could not tell the difference when I hit reply. I also found a filter that redirected my sent mail, so whenever I email my client, it actually went to the mimicked address instead, to the hacker. He would then resend from my account if it did not interfere with the ploy. This way, both parties think they are communicating with each other, because there is correct followup info from previous discussions, and we did not detect that it is all filtered through the hacker.

Of course, I no longer send and receive sensitive documents by email any more. I make clients go directly to the escrow office to pick up their check or to sign for a wire transfer. I've taken myself out of the financial and escrow loop, but how do I direct my attorney to defend myself? The insurance company chooses the law firm, not me, and they don't seem to know what to do, just motioning for delays. I'm afraid the more they do "discovery" the more it looks bad for me.

My original question is should I tell my young and un-confident attorney to use Intervening and Superseding Cause as my defense?

However, the hacker wasn't the intervening cause. He/she/they were the initial cause and I was the vehicle to complete the fraud and convince the escrow office to transact the wire. The escrow office doesn't deal with the principals, they do everything through me, so they didn't as for ID, check signatures, or care whether the wire went back to the originating account or to a new bank.

They just said, overseas?, fine, but we have to pay the bank extra so we charge extra. They just focused on their stupids fees and never asked to confirm anything else, and did not contact the purchaser. They are also Chinese and constantly wire money to other Chinese-majority countries and didn't think anything of it. Can I blame them for contributing to the problem. They said, they did exactly what I asked them to do, so they aren't liable for anything - its all on me. I say its the hacker's fault, but the hacker was neither intervening nor superseding. It started with the hacker.

What should I use as a defense?

 

[John Zong]

You should discuss what you know about this unusual bit of business.

You should then ask your attorney about your legal options.

There's much you don't know.

For instance, how did the alleged swindler know to "hack" your account?

Why didn't you, upon learning what the alleged swindler desired, endeavor to investigate and verify the swindler's demands?

You might be potentially liable because you properly failed in your due diligence.

Have a discussion with your attorney.
Ascertain your exposure.
Put in place safeguards, such as CEASE transacting business by email.
Even if you used a "so called secure" email server, the swindle would still have occurred absent better business practices.

Maybe I was targeted because I have almost the highest realtor ratings in the sub-region, which is primarily Chinese. My tech said I got a virus from a spam email which sounded like a real R.E. inquiry, but I didn't get a response when I replied. I think that's how they got my email password - I type it all day long.

The client is also Chinese, and I know that the country where the hacker has contact (Singapore) is mostly Chinese as well. So, when the client says he had to go to Asia, then asked me to send the money to Singapore, this is not unusual. I have done so several times myself to Hong Kong, Indonesia and Taiwan.

The hacker had set up filters on my google account so that all my clients mail went straight to trash and he was able to monitor the mail there, then copy and paste portions and resend to me with a mimicked address (yahoo69969 instead of yahoo69699) so that I could not tell the difference when I hit reply. I also found a filter that redirected my sent mail, so whenever I email my client, it actually went to the mimicked address instead, to the hacker. He would then resend from my account if it did not interfere with the ploy. This way, both parties think they are communicating with each other, because there is correct followup info from previous discussions, and we did not detect that it is all filtered through the hacker.

Of course, I no longer send and receive sensitive documents by email any more. I make clients go directly to the escrow office to pick up their check or to sign for a wire transfer. I've taken myself out of the financial and escrow loop, but how do I direct my attorney to defend myself? The insurance company chooses the law firm, not me, and they don't seem to know what to do, just motioning for delays. I'm afraid the more they do "discovery" the more it looks bad for me.

My original question is should I tell my young and un-confident attorney to use Intervening and Superseding Cause as my defense?

However, the hacker wasn't the intervening cause. He/she/they were the initial cause and I was the vehicle to complete the fraud and convince the escrow office to transact the wire. The escrow office doesn't deal with the principals, they do everything through me, so they didn't as for ID, check signatures, or care whether the wire went back to the originating account or to a new bank.

They just said, overseas?, fine, but we have to pay the bank extra so we charge extra. They just focused on their stupids fees and never asked to confirm anything else, and did not contact the purchaser. They are also Chinese and constantly wire money to other Chinese-majority countries and didn't think anything of it. Can I blame them for contributing to the problem. They said, they did exactly what I asked them to do, so they aren't liable for anything - its all on me. I say its the hacker's fault, but the hacker was neither intervening nor superseding. It started with the hacker.

What should I use as a defense?

 

[army judge]

I suggest you visit three or four criminal defense attorneys in your area.
You might wish to find out if they are familiar with federal wire fraud statues.

You need to understand your civil and criminal exposure.
Forget about the civil attorney until you've consulted these new attorneys.
Attorneys don't charge you for an initial consultation.
After you've met with these attorneys, return and let me know what you've learned.

You need to slow own, get yourself fully informed about where this could lead. Currently you're focusing on civil penalties.

You're making a major mistake by trying to create a defense, or an excuse for yourself. That only makes you appear guilty. I'm not saying you are. I'm saying how your actions are perceived within the confines of the legal process.

Have you, or has your firm, reported this hacking incident to the police, or the US Secret Service? If not, that needs to be done. Yes, I understand little else might be accomplished, in regards to the perpetrator being caught, but it needs to be done.

Has the insurance company provided you, or your firm any direction? You also need to stop referring to the inexperience of your attorney. He's not the one that got swindled, or defrauded.

Additionally, it's not within your purview to instruct your attorney on trial strategy, anymore than you would your oncologist in treating your cancer.

As far as a defense, all I see so far, is negligence. There might be more, so slw down. At some point, it might be alleged that you're involved in a conspiracy to defraud the firm, or your customers. Again, that's not to say you are. It's simply to offer up what the other side might allege.

Last, but not least, what allegations against your firm (and yourself) have been lodged? Have you been served with a civil suit? Have you been approached by the police?

 

[John Zong]

I suggest you visit three or four criminal defense attorneys in your area.
You might wish to find out if they are familiar with federal wire fraud statues.

You need to understand your civil and criminal exposure.
Forget about the civil attorney until you've consulted these new attorneys.
Attorneys don't charge you for an initial consultation.
After you've met with these attorneys, return and let me know what you've learned.

You need to slow own, get yourself fully informed about where this could lead. Currently you're focusing on civil penalties.

You're making a major mistake by trying to create a defense, or an excuse for yourself. That only makes you appear guilty. I'm not saying you are. I'm saying how your actions are perceived within the confines of the legal process.

Have you, or has your firm, reported this hacking incident to the police, or the US Secret Service? If not, that needs to be done. Yes, I understand little else might be accomplished, in regards to the perpetrator being caught, but it needs to be done.

Has the insurance company provided you, or your firm any direction? You also need to stop referring to the inexperience of your attorney. He's not the one that got swindled, or defrauded.

Additionally, it's not within your purview to instruct your attorney on trial strategy, anymore than you would your oncologist in treating your cancer.

As far as a defense, all I see so far, is negligence. There might be more, so slw down. At some point, it might be alleged that you're involved in a conspiracy to defraud the firm, or your customers. Again, that's not to say you are. It's simply to offer up what the other side might allege.

Last, but not least, what allegations against your firm (and yourself) have been lodged? Have you been served with a civil suit? Have you been approached by the police?

Thank you, Army Judge for your thoughts.

I began this thread by indicating that I was role-playing the defendant, but that I am actually the plaintiff who suffered loss.
"[I am about to sue as R.E. purchasing Plaintiff but I am asking as the Broker/Defendant to anticipate the defense strategy and explore the strength of my suit]."

Your response gives confidence to the win-ability of my case as plaintiff. I'm out the full price of a mid-range home if we don't get our money back.

The broker's defense is filing MSJ citing Intervening/Superseding Cause. I don't perceive an intervening cause. The hacker is the initial cause of loss and my broker is the vehicle to complete the theft due to his negligence. There was no subsequent, course-changing event between his negligently instructing escrow to complete the false wire and the resulting loss.

Opinions are welcomed.

 

[army judge]

It's not that no one cares, it's impossible to pursue most criminal prosecutions against perpetrators hiding in The People's Republic of China.

The US has no extradition treaty with the PRC.


1. Cuba.

Homeland of Fidel Castro and a socialist paradise for those who are willing to eschew U.S. laws, Cuba has no extradition treaty (or even much in the way of diplomatic relations) with the United States.

Although extradition does not require an extradition treaty, the fact that Cuba doesn't play nice with the U.S. diplomatically (remember Elian Gonzalez?) will ensure that your new Cuban government denies any request to send you back.

2. Mainland China.

Unlike the odd nexus of economic and political treaties known as Hong Kong, mainland China has no extradition treaty with the United States, which may have been some use to expats like Snowden if they wanted to escape U.S. prosecution.

However, China could still play a part in Snowden's fate, as the treaty between Hong Kong and the U.S. allows China to stop extradition if it interferes with their defense, foreign affairs or public policy, reports the South China Morning Post.

3. Morocco.

Ready to escape the United States and live out your Casablanca fantasy?

Morocco also has no extradition treaty, as confirmed by Ponzi-scheming lawyer Scott Rothstein, and you can spend your time there drinking mint tea and dodging Nazis CIA agents.

4. Iran.

Perhaps not the best place for anyone of Jewish ancestry, Iran is yet another country with both a lack of extradition treaty with the United States and a general disdain for diplomatic action.

Even if you murder someone, if you learn Farsi and manage to get an Iranian visa, you may live 'til 90 tending your garden in Tehran without a peep from the United States.

5. Nicaragua.

Probably not the most popular choice for a getaway, Nicaraguan nationals have protected status to flee their home country for the United States. But Nicaragua is very unfriendly with the U.S. government, so your chances of extradition there are low.

In addition to having no extradition treaty, if you're in good standing with the Sandinistas, the cocaine-dusted jungles of Nicaragua might be your Eden.

Honorable Mentions

If the above-mentioned countries fail to float your boat, consider this: Iceland, France, and Switzerland have been known to harbor U.S. fugitives, like sex-offender/film-maker Roman Polanski, despite having extradition treaties. Still, whether you'd want to follow in Polanski's (or Edward Snowden's) infamous footsteps is something you may want to discuss with your criminal defense lawyer first.

- See more at: 5 Countries With No U.S. Extradition Treaty