A newly filed lawsuit in Ocean County Superior Court is drawing attention to the increasing trend of wire fraud in real estate transactions, particularly where large sums are held in attorney trust accounts and transferred electronically, FAA News reports.
The complaint, filed on December 22, 2025, alleges that more than $1.2 million in real estate sale proceeds were misdirected to a fraudster after an alleged phishing scheme went undetected.
According to the lawsuit, the plaintiff retained the Lakewood law firm in connection with the sale of a Gefen Drive, Lakewood property. The transaction closed in March 2024, and the net proceeds - alleged to total $1,211,953.73 - were held in an attorney trust account pending transfer to the plaintiff overseas.
The complaint alleges that in February 2025, a fraudulent email, nearly identical to the plaintiff’s legitimate email address, was received by the law office requesting that the funds be wired to a bank account in Florida. The difference between the legitimate and fraudulent email addresses allegedly consisted of a single additional letter - an increasingly common tactic used in wire-fraud schemes.
The lawsuit further claims that the wire transfer was executed without direct confirmation from the client by telephone or verified electronic communication, and that the funds were sent to an account not belonging to the plaintiff.
By the time the alleged discrepancy was discovered, the money had already been withdrawn.
The lawsuit asserts claims of professional negligence and breach of fiduciary duty and seeks damages exceeding $1.2 million, along with legal fees and costs. A jury trial has been demanded.
While the defendants have not yet filed a response and all allegations remain unproven, the case underscores the growing sophistication of real estate phishing scams and the catastrophic losses that can result from a single compromised communication.
Cybersecurity experts and legal ethics commentators have repeatedly warned that wire-fraud scams now routinely target attorneys, title companies, and clients involved in real estate transactions, especially those involving foreign buyers or sellers. Best practices increasingly include mandatory voice verification, written wire-transfer protocols, and refusal to rely on last-minute changes transmitted solely by email.
Regardless of the ultimate outcome, the case serves as a stark reminder to consumers and professionals alike: email alone is never enough when seven-figure wires are involved.
To join the FAA News community click here. It's a private group. No one will see your number
1 comment:
Veri interesting. Can you share the docket # of the case? I would like to follow and see the details.
Post a Comment