After Polk County lawyer stole millions, is there any hope of compensation?

by Gary White

The recent sentencing of Jason Penrod, a Polk County lawyer who pleaded guilty to stealing money from clients, raises a question: Can former clients victimized by a lawyer expect to recover any money they lost?

The answer is ... maybe. Even if no money remains available to claim through a civil lawsuit, The Florida Bar offers an avenue for seeking at least partial compensation.

Who is Jason Penrod?

First, the background on Penrod.

He founded and owned Family Elder Law, a firm with offices in Lakeland, Lake Wales and Sebring. The firm abruptly closed its offices in July 2024 with no warning to clients.

The Polk County Sheriff’s Office arrested Penrod in September 2024 on a charge of grand theft. PCSO alleged that Penrod stole nearly $1.8 million from a client’s trust

Authorities later added a second grand theft, along with about 30 counts of money laundering.

Penrod lost more than $1.7 million while gambling on multiple visits to the Seminole Hard Rock Casino in Tampa, the Polk County Sheriff’s Office stated.

Penrod, 48, pleaded guilty on Dec. 12 to two counts of grand theft and 19 counts of money laundering. Grand theft involves amounts of more than $100,000. He was sentenced to 25 years in prison, followed by 15 years of probation.

What is The Florida Bar's program?

The Florida Bar, which licenses all lawyers working in the state, created the Clients’ Security Fund in 1967 as a means to compensate clients who suffer losses through “misappropriation” by a member.

The program, funded by a portion of annual membership fees, is discretionary, meaning the fund is not obligated to pay any claim, according to The Florida Bar’s website.

There are limits on claims: They can be filed only if a lawyer has been disciplined through suspension, disbarment or revocation, unless the attorney is dead. (The Florida Supreme Court permanently revoked Penrod’s law license in November 2024.)

Losses covered and limits

The fund does not reimburse for losses resulting from negligence, fee disputes or malpractice, and business or investment relationships are not covered. The reimbursement is limited to actual losses and does not cover damages, expenses incurred or lost interest.

Payments are capped at $5,000 for fees paid to a lawyer who performed no services. For cases of misappropriated money, a client may recover the actual amount, with a maximum of $250,000.

A claim must be filed within three years of the final disciplinary action or the lawyer’s death.

For more information, call The Florida Bar’s Attorney/Consumer Assistance Program at 866-352-0707 or go to https://www.floridabar.org/public/acap/assistance.

Some Penrod claims approved

At least five claims against Penrod have been either approved or paid, said Jennifer Krell Davis, director of communications for The Florida Bar.

Two misappropriation claims have been paid in the maximum amount of $250,000 each, Davis said by email. The program has paid fee claims for $3,995 and $2,200, and another fee claim of $1,750 fee has been approved but not paid, Davis said.

The names and other identifying details of claimants remain confidential unless specific written permission has been granted, Davis said.

Civil lawsuits another option

At least one civil lawsuit has been filed against Penrod.

Even before his arrest, the adult offspring of a client sued Penrod in the 10th Judicial Circuit. Charles Anderson and Sherry Prevoznik accused Penrod of stealing nearly $1.8 million from the trust fund of their father, David D. Anderson, who died in 2021.

In June, Judge Michael McDaniel issued an order granting partial summary judgment and damages of $1.75 million. It is not clear if any money is available to be claimed.

Neither Prevoznik nor the lawyer who filed the suit responded to messages from The Ledger. 

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After Polk County lawyer stole millions, is there any hope of compensation?