Important Information Regarding Trust Account Fraud: 

The Colorado Supreme Court Office of Attorney Regulation received specific information regarding a trust account scam operating out of Canada. The fraud involves purported collection on a promissory note and involves both the lender and the debtor. The "client" is seeking the assistance of the lawyer in collecting on the promissory note. Shortly after making a demand for payment, the lawyer receives cashier's checks drawn on an Ohio bank. The checks total $80,000. The "client" expects the lawyer to run the checks through the lawyer's trust account and then forward the funds to the "client." The cashier's checks pass the typical fraud detection safeguards and appear legitimate. A slight spelling error is the only indication of fraud. All Colorado lawyers should be wary of any similar scheme. If you are the recipient of telephone calls or emails seeking legal assistance in matters similar to the above facts, you should take all necessary precautions to verify the negotiability of the checks. Please contact this office and law enforcement with any information related to this scheme.

Office of Attorney Regulation,
Colorado Supreme Court
(303) 866-6400

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The Colorado Lawyer Trust Account Foundation (COLTAF) administers Colorado's Interest on Lawyer Trust Accounts (IOLTA) program. This program is an innovative partnership between the legal community and the banking community, whereby the interest on lawyers' pooled trust accounts is used to make grants to improve access to civil justice statewide. IOLTA programs operate in all fifty states and in the District of Columbia, and are an increasingly critical piece of the funding picture for civil legal services for the poor.

COLTAF was established in 1982 by the Colorado Supreme Court, in response to severe cuts in federal funding for legal services. From 1982 through 2010, COLTAF has made grants in excess of 30.7 million dollars. Approximately 80% of these funds have gone to Colorado's federally-funded legal services programs. The other 20% have gone to bar-sponsored pro-bono programs, domestic violence programs, and other justice-related organizations.

COLTAF's only source of revenue is the interest earned on COLTAF accounts at banks across the state. Therefore COLTAF's ability to provide resources for a vital community purpose is entirely dependent on banks waiving fees on COLTAF accounts and paying strong COLTAF interest rates.  Lawyers can support COLTAF by maintaining their COLTAF accounts at one of COLTAF's Prime Partners.