Paralegals & Legal Secretaries

After sixteen plus years working in the legal profession I, like so many others, have enjoyed bonding with my colleagues.  We truly have become family and it has been a joy to watch each other grow and succeed.  Not only do we share professional bonds but through online communities, we have become friends as well, sharing laughter and tears through personal challenges as well.  Like any family, we look out for and take care of each other.  Personally, I have seen many con artists through the years who seem to thrive on taking advantage of members of the Paralegal profession.  Recently, I have noticed a trend of emerging ?Storefront Legal Organizations? popping up at an alarming rate and felt the need to give fair warning to my fellow Paralegals.

Because most individuals are hard working and good people, they tend to think of others in the same light.  While this is a great quality to possess, there are times we must put on our investigator?s hat and ask questions that any good detective would ask to avoid being the victim of fraud. 

What is a Storefront Legal Organization?

These are basically businesses disguised as a non-profit.  Why would someone go to the trouble you ask?  Money!!!  Paralegals and other legal professionals are big business and all you have to do is look at the many legal service providers that exist to realize just how big of a business our profession is.  Paralegals specifically are either picking up the phone to call these providers or they are the gatekeepers to those who hold the purse strings.  The people who run these storefront associations usually have experience within the legal industry and also realize how much money can be made from the same.

Additionally, in these economic times, these predators recognize that Paralegals and legal professionals are doing all that we can to stand out above the crowd and what better way to do that than with a long list of legal organizations padding our resume?  I call them ?predators? because that is exactly what they are and we need to attempt to think like they do to expose that they are.

Do Your Due Diligence.

We are legal professionals and this is where we have an advantage over others when it comes to avoiding becoming the victim of one of these storefront scams.  Here are some steps you can follow before handing over your hard-earned money to become a member of these organizations.

First, if the organization is claiming ?non-profit? status, go directly to IRS.gov and click on their ?charities and non-profits? link.  There you can search the organization by name.  If it is not listed, not only should you not sign up with their group, but you should also report fraud to the IRS via their Form 3949 A.  This way you can also protect others within our community to falling victim as well.  Also, find out how long the organization has been around.  If it is relatively new, this should be something to be concerned about.

The IRS has strict guidelines for non-profit Business Leagues, which includes that no part of the net earnings benefit any private shareholder or individual.   This includes Board Members and Founding Members!  They define a Business League as an association of persons having some common business interest, the purpose of which is to promote such common interest and not to engage in a regular business of any kind ordinarily carried on for profit.  In our case, this includes, legal seminars and certification examinations where there is not any governing body in place to regulate the same.

Second, you have the right to request that the Founding Members provide you with a detailed budget that will give a clear picture of exactly where each dollar of the organization goes.  This includes everything from maintenance of facilities to the salaries of those who run the organizations.

Third, contact anyone listed as a member of the Board of Directors or Advisory Board and ask them specific questions about the organization and their involvement in the same.  Believe it or not the predators who run these store-front operations will actually use the names of business owners, partners in law firms, Deans of colleges, etc. without those individuals ever knowing they?ve been listed on a website as a member of any Board of Directors or Advisory Board.  Call them or email them to find out exactly what their duties in this organization include.  Their contact information should either be listed on the website of the organization or should be made easily available by those in charge of running the organization.  If you have any trouble obtaining this information, red lights and flags should pop up faster than you can say, ?fraud?.

Forth, be sure to do a background search on the founding members of the organization.  We are paralegals and legal professionals and have access to wonderful tools such as PACER and we should absolutely use the same before we pay our money or our firm?s money to anyone for any reason!  Run a PACER check on the first and last names on those in charge.  If they have had any personal or business bankruptcies (especially multiple bankruptcies) this should also be an indication of how those in charge are able to manage money.  Be sure to read the documents associated with these cases including the List of Creditors.  If those creditors listed are legal vendors and/or legal professionals, run as fast as you can away from this operation!  These scam artists only want your money and do not care about you or our profession. 

Your background search should also include the corporate offices.  Run Map quest or Google Map search on the corporate offices of the said organization.  If it is run from an apartment or home, this should also be a red flag.  Additionally, if most of the core members of the operation are related, this should be another indication that it may not be as legitimate as they would like for you to think.  Keep in mind that relatives don?t always have the same last names.

Also be sure to check the professional credentials of those in charge.  If they have any professional designations following their names, you have every right to ask them where they went to school.  If they give you the name of the school, be sure to call the same to verify they graduated and are able to display the designation.

Member Benefits: What?s in it for you?

Member benefits say quite a bit about an organization as well.  If most of the benefits include free webzine subscription or discounts on that organizations goods and services, this is not really a benefit to you.  You would have to pay for the goods and services regardless of any small discount and a webzine is free for the organization to publish.  With the many free social networking sites online today, you can easily find others in your profession to network with and never have to pay a dime. 

Stick with the Tried and True

You?re best bet is to stick with the tried and true legal organizations that have been established and working for years.  Paralegals have the National Federation of Paralegal Associations (NFPA), the National Association of Legal Assistants (NALA) as well as NALS?the association for legal professionals and their State level affiliations.   They cost very little to join and offer exceptional networking opportunities and benefits. 

So remember, ?Caveat emptor? or ?Let the buyer beware?.  Use those Paralegal research skills to qualify any organization or individual who wants you to pay a fee to join their organization.  It is your right to find out about them and your duty to protect others in our profession from these predators and expose them.