Conclusion: the lawyer`s IOLTA accounts are a form of trust, but are not the same as a “trust account,” since IOLTA counsel is generally not a neutral third party, since the obligation is made to the engaged client. The buyer and seller agree to unlock Paymaster funds – the buyer and seller sign an agreement that allows the release of the specified funds (or part of them under the terms of the contract). On request and as part of our international legal advice, we also assume mandates for the design and adaptation of all contracts and agreements. 1) A copy of the driver`s licence and/or valid passport; 2) the full form of the W-9 IRS for U.S. citizens or companies involved; 3) Completed W-8BEN IRS Form for foreign or participating companies; 4) Copy of all transaction documents, including payment agreements; and 5) Other forms related to a thorough “Know Your Client” (KYC) due diligence process. An Escrow Attorney is not a lawyer for one of the buyers and sellers of the parties agreeing to the terms of the contract – either the buyer or seller contacts a fiduciary lawyer/Paymaster. Both parties agree with the terms of the trust agreement (without the assistance of a Paymaster lawyer). The buyer receives the specific IOLTA banking information from the Paymaster. The seller gives his bank details to the Paymaster.
As a result, the lawyer was convicted for his lack of diligence. While these Paymaster services may seem harmless at first glance, they can be tainted with hazards. In particular, lawyers who market themselves as a Paymaster lawyer can become targets of unscrupulous fraudsters. In one reported case, a Rhode Island lawyer agreed to serve as a paymaster for an alleged commodities brokerage client who contacted him via the Internet. After a very superficial due diligence, the lawyer received money from his business account and followed instructions to transfer the money to offshore accounts. In one month, more than $3.4 million was paid out, with the lawyer receiving $68,000 in commission for very limited work. Then the incident presented itself as a result. Please note and read carefully before contacting us! We receive hundreds of Paymaster service requests every week! Unfortunately, 60-70% of all applications are not closed or fraud-based! If you are unsure, please use our cybercrime check to avoid costs, time and energy. The main example: two parties working with their own advisor have agreed to a major transaction in which 2 million widgets were purchased for $8 million. The terms of the agreement provide that a neutral third party (defined by “Treuhand”) is used to facilitate the transfer of funds. In this case, Panakos Law will act as a neutral paymaster and facilitate the transfer of USD 8 million between the parties under the terms of the transaction (both parties agree to the release of the funds).