The pending lawsuit, against a prominent law firm that advised convicted Ponzi schemer Nevin Shapiro, illustrates the possible consequences when lawyers fail to identify their client as a Ponzi early on, and exit the relationship. We have previously covered this litigation in a prior article*, but a new, and more professionally disturbing, development recently appeared.
Counsel for the plaintiff, a victim who sues the Ponzi's law firm on several causes of action, asked the Court for the performance reviews, personnel files, and sundry other extremely personal professional information about the attorneys who advised their client, who is now serving an extended term in Federal Prison for his crimes.
Though the judge denied these requests, the point remains: when lawyers unwittingly advise Ponzi schemers, and do not learn about their client's true purpose until it's too late, they risk being placed under a microscope in subsequent litigation against them by the victims. That is just one more reason to always periodically review your clients for suspicious activity, irrespective of your profession.
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*Law Firm for Convicted Ponzi Schemer sued by Trustee, http://rijock.blogspot.com/2013/02/law-firm-for-convicted-ponzi-schemer.html
Counsel for the plaintiff, a victim who sues the Ponzi's law firm on several causes of action, asked the Court for the performance reviews, personnel files, and sundry other extremely personal professional information about the attorneys who advised their client, who is now serving an extended term in Federal Prison for his crimes.
Though the judge denied these requests, the point remains: when lawyers unwittingly advise Ponzi schemers, and do not learn about their client's true purpose until it's too late, they risk being placed under a microscope in subsequent litigation against them by the victims. That is just one more reason to always periodically review your clients for suspicious activity, irrespective of your profession.
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*Law Firm for Convicted Ponzi Schemer sued by Trustee, http://rijock.blogspot.com/2013/02/law-firm-for-convicted-ponzi-schemer.html
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