Don't Let This Happen To You! Hold Them Responsible!

Public Service Message for anyone involved in Buying or Selling Real-Estate:

More than 4 years ago, back in Sept 2017, my wife and I were scammed out of our $91,500 life savings, which was to be used as closing costs for the purchase of our retirement home. This happened because of emailed wire-transfer instructions sent by (someone we thought was) our attorney.

We were never provided any warning, guidance, advice, or instructions on what to do upon receiving such an email. Our Newton real estate attorney and our Sparta NJ realtor had been emailing back and forth with my wife and me for a month prior - they were requesting and sending all types of personal financial information, contracts, etc., all through emails.

My wife and I trusted them as professionals to know what they were doing. Instead, at the very beginning of our working with her, the realtor told us we had to use her personal email because she "was having problems with her COMPANY email account". However, she had continued to still use both her personal email and her “problem” company email throughout the whole time.

The realtor also sent us a contract via email that did not contain the company’s required Wire-Transfer Warning Form, which we were supposed to have signed and returned with the contract. We never saw it at the time; therefore, we returned a signed contract (she said it was OK to fax it to her) without it. The realtor has admitted she neglected to send it and to follow-up making sure we had signed it, yet she and her company says they have no fault in the loss of our $91,500.

Our Newton NJ attorney told us is that we would be receiving an email from him with the instructions for wire-transferring the $91,500 a few days before the closing date, and that we had to make sure we transferred it immediately.

Our attorney never provided us with any verbal or written guidance as to calling him first before sending any money. He blames my wife and me for falling for such an email scam, even though my wife and I had hired him as the expert to guide us through the intricate process of purchasing a foreclosed property.

My wife and I had not been involved in any such real estate transactions - foreclosed or otherwise - since 1990 - 27 years before that, at which time everything was done with checks at the actual sit-down closing meeting. We knew nothing about wire-transfers nor about the prevalence of real -estate wire-transfer email scams back in August 2017.

Three days before closing we did receive an email with the instructions from (whom we thought was) our attorney’s paralegal. The email had all the pertinent information, the firms name, numbers, logo, etc. and all the details of our purchase.

This sender's email was one letter off---one small letter was missing in an address that contained a long string of the same letter - as noted (not providing the whole name here but you get the idea)..glrly@mllylawllc.com / glrly@mlylawllc.com ----something very easy to overlook when emailing dozens of messages and attachments back and forth with that paralegal and the realtor and numerous others involved with the transaction over the previous 30 days.

We followed the instructions and sent the wire-transfer. When we sat down at the closing table with the seller's representative and our attorney, we learned that the money we had transferred two days before never got to the seller's account.

We told them that we had followed the directions emailed by the attorney. We showed them all the information for the wire-transfer that was in that email. The seller’s closing agent said that was not their information. Neither our attorney nor that agent had checked that morning to see if the money was in the proper account, something our attorney should have done to ensure that closing could occur.

Our attorney said his paralegal would not have sent out incorrect information and showed us the actual email she had sent. It looked the same as the one we had received except for the changed transfer information.

However, even in the real email his office sent out there were no warnings or guidance as to “Call me first upon receipt of this email before sending any money”. It simply said – make sure to send the money before we go to closing on September 1.

In short, the attorney did not follow best industry practices and was negligent in advising and guiding his clients through the intricate process of purchasing a foreclosed property

Afterwards, when we tried to work out getting back our money without having to go to court, our attorney said he knew we could sue him, but he offered us $5000 not to sue him and to go after the seller's representative and the realtor.

The realtor, the realtor’s company and our real estate attorney all state they had no obligation to have warned us and they have no culpability in our loss.

Our attorney first said he did not have professional insurance because his ex-wife had forgotten to pay the premium back in 2017.

About as year later states he did not have insurance because he believes having such insurance does not pertain to him.

4 ½ years later, this attorney is still working as a real estate attorney in two NJ law firms as well as his own.

The realtor and her company are still stating they have no responsibility at all.

So, anyone reading this -- be very wary of such scams. Never trust ANY EMAIL that requests you send money via wire-transfer, even if you think, or think you recognize, the sender. Make sure that the professionals you hire know their business, use best practices, advise and educate you on the process, and live up to any mistakes they may make.

Your attorney and realtor should be warning you very simply.... both verbally and in writing..... (with a required return signature) that:

“Once you receive an (this) email with instructions, call first to verify before sending the transfer”.

My wife and I trusted our professionals to protect our interests and to provide us with best practices and guidance. -- very simple, they were the experts, we were the trusting clients.

Do not let this happen to you!