When To Call a Lawyer After Fraud Strikes

Even the most cautious individuals can fall victim to fraud, whether through online scams or manipulation in person. “I get calls regularly -- at least every month, sometimes every week — from people who say they have been defrauded,” said David F. Johnson, a Fort Worth attorney who specializes in fraud cases across Texas. “So much of this is going on today.”

Texas has a range of laws addressing fraud, including statutes from the 1970s targeting fiduciary abuse and more recent laws criminalizing exploitation of the elderly and disabled. Victims should first report fraud to local police to help establish patterns and support investigations. But whether to hire a lawyer depends on the amount lost.

“Lawyers can be expensive,” Johnson noted, “so if only a small amount was lost, it may not make sense to hire a lawyer to try to recover that.”

For larger losses, attorneys may work on contingency, take a flat fee, or bill hourly. One benefit of hiring a lawyer is their ability to push the case forward with law enforcement.

“The onus is on the lawyer to communicate with investigative authorities to get information,” Johnson said. Lawyers can also hire private investigators, draft subpoenas, and bring in tech experts to analyze digital activity. “I’m not tech savvy, but I’m smart enough to know who is, and to hire them on a client’s behalf.”

A particularly troubling form of fraud involves personal manipulation or what Johnson calls “undue friendliness.” This often comes from someone close to the victim, such as a relative, friend, or handyman. “They may abuse the relationship to steal from them or change their will,” he said. Warning signs include relationships that develop too quickly or seem overly intense. “If the display of friendliness and its speed is inappropriate or disproportionate, then undue influence or fraud may exist.”

These in-person cases are often easier to resolve than online scams because the perpetrators are known. “We know who they are, and we can file an injunction to freeze the assets in dispute,” Johnson explained. Most fraud cases settle through mediation or negotiation, but in criminal cases, lawyers can help ensure restitution is part of any plea deal.

If a victim is experiencing memory loss or cognitive decline, lawyers assess their capacity to engage legal help. “We may even consult a doctor and seek medical records,” Johnson said. If needed, a trusted family member, power of attorney, or court-appointed guardian can step in.

Johnson advises victims to seek attorneys experienced in fiduciary litigation, fraud, and estate matters. He also calls for more resources and training for law enforcement, especially in smaller counties. “Large district attorney offices typically have prosecutors assigned to financial crime, but the smaller counties often do not.”

Finally, Johnson urges vigilance, especially with older loved ones. “Our society is becoming more remote,” he said. “If you have grandparents or older loved ones, you need to know what’s going on. Check on them, and if you see anything inappropriate, report it.”

Annette Fuller, the author of this article, is an AARP volunteer who serves on the AARP Texas Executive Council.