Former Business Owner Warns Of Collections Scam Using Company Name, His ID

DETROIT (WWJ) - It's an old scam with a new twist. A Royal Oak man says someone is using his name to defraud attorneys in a scam. Fifty-four-year old Douglas Steward says as part of the scheme, a phony "Douglas Steward" will hire an attorney to start collections proceedings against someone, then overpay the lawyer with a fake cashier's check.

"The attorney says 'yes, we can do the collection' and within days after that they receive a cashiers check written on a major North American bank and the fraudulent Douglas Steward will email and tell them -- just take your retainer out of that and wire me the rest of the money," said Steward.

Steward owned a company in Jackson by the name of Chelsea Grinding. He sold it to a competitor last year and so, basically, the day-to-day operations have ceased - it no longer exists. Certainly, there are no collections being done and that is what the scam is about.

The attorney doesn't even have to contact the anyone to get a check says Steward.

"Like 'wow' this is easy and I can make a quick $5,000 and just wire this Douglas Steward the money. And that's the scam. And that's what we are trying to prevent," he says.

Steward says the FBI contacted him after one law firm became suspicious. The case is at a stand still because there are no alleged victims.