That Time When A Potential Client Wanted My Advice On Doing Something Illegal
Good business plans do not require breaking laws, devising strategies for minimizing jail time, or getting sued for fraud.
People usually call lawyers to help them get out of trouble. Others contact them to help plan for such things as setting up a business, minimizing taxes, or estate planning. But every once in a while, someone reaches out to a lawyer hoping that he or she can help further their illegal schemes.
I recall a long time ago, I got a call from someone who wanted legal counsel regarding his business plan. After talking to him for a few minutes, I suspected that his business plan involved fraud. I also didn’t like the caller’s aggressive tone of voice. So I told him that his plan probably didn’t sound like a good idea. He wanted to meet for a more detailed conversation so I quoted him an abnormally high consultation fee (to be paid in advance) hoping that it will scare him away. Surprisingly, he paid it so we set up an appointment.
At the appointment, the caller came with his partner. They both looked young. If I were to guess, they were in their mid-twenties. After talking with them for almost half an hour, I was pretty sure that their business plan involved fraud. I also got a feel for their personalities.
The caller — let’s call him Costello — looked as aggressive as he sounded and seemed like he was the one calling the shots. I think he knew that what he was doing is illegal and wanted to know how to minimize or hide the illegality. He also asked a lot of questions that suggested that he was doing a risk analysis. For example, he asked what the chances were of getting caught. Or what activities would arouse suspicions by others. And whether there were criminal penalties.
His partner — we’ll call him Abbott –- seemed like the more sensible of the two. He wanted to know how to run the business legitimately and asked about how to comply with the laws. But I suspected that he was being pressured by Costello as he sometimes had a cringey look when Abbott was talking. I recall Abbott and I exchanging eyerolls whenever Costello was asking about the chances of getting caught for the eighth time.
I think Abbott and Costello told me enough to know that I did not want to be a part of their get rich quick scheme. So my objective for our remaining time together was to try to convince them to either ditch their questionable plan altogether or at least help them adjust their plan so it won’t land them in jail or behind the defendant’s table. And if Abbott still wants to move forward with his plan, at least try to convince Costello to get out of the way.
I remember telling them that good business plans do not require breaking laws, devising strategies for minimizing jail time, or getting sued for fraud.
I then told them that they were still young and they had plenty of time and opportunities to make money legitimately. Having a criminal record or a large civil judgment could prevent them from doing other things when they were older. Even if they don’t get sued or sentenced, they shouldn’t spend what’s left of their carefree years looking over their shoulders or having sleepless nights because of what they did. But if they get an adrenaline rush from this, maybe they should consider going to law school instead.
Finally, we discussed some alternatives to business ideas that were legal. Of course, it would take some additional work and money on their part. While discussing this subject, I looked mostly at Abbott since I probably wouldn’t get through to Costello. Hopefully the advice would at least give him an option to do something on his own.
I have not heard from either of them since that meeting. Recently, I thought about contacting them to see what they were up to but I decided not to. Instead, I googled their names. Unfortunately, their names are fairly common (like John Roberts) so I couldn’t locate them. But then I remembered that what I didn’t see is also important. Such as not seeing their names on a criminal indictment or on the local news. So I’ll assume that they didn’t follow through with their plan. On the other hand, it is possible that they went through with their plan, made a quick buck, and then disappeared back to their normal lives.
Once in a while, someone will reach out to a lawyer hoping to get advice on doing something illegal. You can quickly tell them that it is a bad idea and end the conversation. In some cases, that is the best course of action. But sometimes, people don’t know any better (or don’t have other options) and need someone knowledgeable to give them alternatives. Of course, this is easier said than done as there will always be con artists who will try to take advantage of a lawyer’s expertise. For these people, ask for an abnormally high consultation fee up front.
Steven Chung is a tax attorney in Los Angeles, California. He helps people with basic tax planning and resolve tax disputes. He is also sympathetic to people with large student loans. He can be reached via email at sachimalbe@excite.com. Or you can connect with him on Twitter (@stevenchung) and connect with him on LinkedIn.
