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#1626689 - 11/09/11 07:54 PM IOLA Account- Suspicious
J2C Offline
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Big Brother knows and that's a...
Not something that we see much suspicious activity on but recently we have had an IOLA account where the attorney wrote a check off the IOLA for $50,000 to another attorney in his practice. That check was deposited to the attorney's personal account. The memo line said "flood". On the same day the attorney that deposited the $50,000 check, wrote a $10,000 check to the other attorney from the same IOLA account and that attorney cashed it at the Bank. The memo line said "flood".

I don't think this is appropriate and indeed suspicious. Anyone else? I checked our state's IOLA site and I can find guidance on NSF but nothing like this...
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#1626708 - 11/09/11 08:09 PM Re: IOLA Account- Suspicious J2C
ACBbank Offline
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Iím not an IOLA expert, but this sounds highly unusual to me. I doubt calling the attorney will get you any where, as they tend to hide behind privilege.

As I always preach, if you canít get information you need to justify the activity and it appears suspicious, file a SAR.
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#1626760 - 11/09/11 09:12 PM Re: IOLA Account- Suspicious ACBbank
BC78a Offline
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New York
Have the Branch call the attorney; if they can not explain the transactions to your satisfaction, file a SAR
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#1626790 - 11/09/11 09:31 PM Re: IOLA Account- Suspicious J2C
Ted Dreyer Offline
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Ted Dreyer
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jennyfromtheblock: Can you identify a deposit that was the source of this money? I'm wondering whether there was, for example, a $180,000 settlement of a lawsuit that was deposited and the attorneys were supposed to get a 1/3 contingent fee.
If so, there might be a $120,000 payment to the client (possibly with "flood" on the memo line) and the attorneys are splitting the $60,000 contingent fee.

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#1626819 - 11/09/11 10:14 PM Re: IOLA Account- Suspicious Ted Dreyer
J2C Offline
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Big Brother knows and that's a...
Ted, thanks for the info...I will take another look.
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