Royal Oak Man's Name, Former Business Used in Scam Targeting Attorneys

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The FBI is looking into a scam using a Royal Oak man’s name and his former business that targets attorneys.

Doug Steward, who formerly owned Jackson-based Chelsea Grinding Co., said the scam involves giving phony checks to lawyers to handle debt collections that don’t exist, WXYZ-TV reports. Steward has set up a website at chelseagrinding.com showing examples of correspondence lawyers receive and explaining the scam:

“A group of individuals has been posing as Douglas Steward, President of Chelsea Grinding Co. of Jackson, Michigan. Their goal appears to be defrauding various attorneys throughout the US by contacting them to assist in the collection of a debt from a customer. After an attorney agrees to assist with the debt collection, a cashier’s check representing partial payment of the debt arrives at their office with instruction to withhold a small retainer and remit the balance to the fraudulent Chelsea Grinding via wire transfer. In every case reported to date, that check has been has been fraudulent and worthless. The perpetrators have no legitimate relationship with Chelsea Grinding Company and their communications and claims are not authorized or endorsed by the real Chelsea Grinding Company.”

“It’s a way of doing business for them,” Steward told the TV station.

Steward had operated Chelsea Grinding since 1998 before shuttering it in July 2014 and selling the assets.

His hope is that the exposure will cause more people with knowledge with the case or who have been targeted to step forward.

The FBI is monitoring the case, the TV said, but it’s hands are tied until a victim comes forward.

When he first learned of the scam, Steward said he “felt violated.

“Now I’m really concerned,” he said. “I don’t want someone defrauded in my name.”

Anyone with information is asked to contact the FBI.