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| Attorney Robert Menard appearing for a deposition in March 2018. The deposition was taken as part of a lawsuit involving Menard's former law partner. A transcript of the deposition is on file with the Milwaukee County Clerk of Courts. (Photo: Milwaukee County Clerk's office, ) |
Well-known lawyer Robert Menard was
jailed Monday on charges of stealing at least $700,000 from his ex-law
partner, clients and his uncle, according to a 14-felony count criminal
complaint.
The 43-page complaint by
the Milwaukee County District Attorney's Office lays out elaborate
schemes by Menard, 56, to steal the law firm he had operated with
longtime partner Alan Derzon, embezzle Derzon's retirement account,
pocket the proceeds of a $500,000 insurance settlement won by his
70-year old uncle and then use his uncle's money to pay off other
clients he had ripped off.
His uncle's money was
also used for personal and business expenses such as paying his
children's tuition at Boston College and Drake University, the
complaints charges.
The uncle, Philip Menard, sued
Robert Menard — a lawyer who brags he represents the "average Joe" —
last year and the case was settled for an undisclosed amount in April.
"Attorney
Robert Menard has, for many years, engaged in an extensive pattern of
theft and fraud through his law practice," Kurt Benkley, an assistant
district attorney, charged in the complaint. Benkley wrote that Menard
"routinely stole from clients in a 'rob Peter to pay Paul' pattern of
theft."
The
prosecutor explained that instead of placing settlement checks for
clients in a segregated account, he put the funds "directly into his law
firm business account, spent the proceeds for his own benefit until the
account fell below a zero balance and then many months later paid old
clients with new clients' insurance settlement funds."
The complaint charges Menard with nine counts of embezzlement, four forgery counts and one count of misconduct in public office.
The charges are the latest in a long line of trouble
for Menard, who is also facing a disbarment action filed by the Office
of Lawyer Regulation. The office, which is the policing arm of the state
Supreme Court, charged Menard with 31 counts of misconduct, including
improperly using client cash to cover office and personal expenses.
A hearing is scheduled for next month and the high court will ultimately decide the matter later.
Despite the disbarment complaint, Benkley alleged Menard's illegal activities continued.
"Bank
records show that, despite the pending OLR complaint, defendant Menard
has continued to steal client funds," the complaint states. "Defendant
Menard deposited insurance settlement checks and spent the proceeds
without paying clients."
In 2017, Derzon, his partner of 25 years, sued Menard charging
he stole the downtown law firm that specialized in worker's
compensation claims from Derzon. At the time, each man had a 50%
interest in the firm. The suit also charged that Menard had stolen
Derzon's retirement fund.
The lawsuit is pending,
though the claim that Menard took the law firm and Derzon's retirement
funds are cornerstones of the criminal complaint.
"Menard
converted virtually the entire assets of Derzon & Menard to the
benefit of Menard & Menard," the criminal complaint states,
referring to the Menard-owned firm that set up shop in the same spot as
the predecessor and kept all of the supplies and assorted assets of
Derzon & Menard.
Even the extensive collection
of sports memorabilia were kept by Menard's new firm as was the
fictional "Joe Bob," who was used to promotes the law firms as the
lawyers who represent the "average Joe." Joe Bob became Menard &
Menard's mascot.
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| Joe Bob, a cartoon character who had been used to advertise the Derzon & Menard law firm, can now be found on the webpage for Menard & Menard, albeit still wearing his Derzon & Menard baseball hat. (Photo: Screen shot) |
The Journal Sentinel first reported the dispute
between the partners in 2017 and disclosed the DA was looking into the
matter last year.
The criminal complaint lays several schemes, including:
Derzon's retirement funds: The
complaint says that on Aug.15, 2013, Derzon had a retirement balance of
$269,722 when Menard told him the account would be rolled over.
Instead,
the complaint said, Derzon's retirement funds were deposited into the
firm's business account and Menard "rapidly spent Mr. Derzon's
retirement funds."
Expenditures included $22,585
to Boston College for Menard's son's tuition, $1,629 to the Milwaukee
Athletic Club, $5,000 to a woman's account at the Philippines National
Bank, a $774 payment to Time Warner Cable, $12,135 to American Express
and several withdrawals of cash and payments to Menard.
The business account had a negative $8,252 balance by Sept. 20, 2013, the complaint states.
On top of that, Kevin Demet, Derzon's lawyer, said his client has been hit with tax liens on the money he never received.
"It's
brutal," Demet said. "First he loses all of his money in the law firm,
his retirement is stolen and he's hit with a with a
half-million-dollar tax debt."
Derzon is an heir to the Derzon Coins business and in 2012 he and relatives won a bitter probate fight over control of the company and assets.
Uncle Philip Menard'scase:
The elder Menard was struck by a car while mowing his lawn in Florida.
Robert Menard represented him and collected a $500,000 settlement.
Instead
of paying his uncle two-thirds of the settlement, or $333,333, as had
been agreed to, Robert Menard continually made excuses for repeated
delays in distributing the cash. At one point, Robert Menard even argued
that he — not his uncle who was severely injured in the accident — was
entitled to the entire $500,000.
The insurance
settlement was paid to the Menard law firm on July 8, 2014. Two months
later the account had a negative $43, the criminal complaint said. "All
of Philip Menard's settlement funds were gone," the complaint states.
The
complaint said the uncle's money went to a variety of parties,
including $45,000 to Robert Menard, $29,146 for tuition at Boston
College, $15,007 for tuition at Drake University on behalf of a second
Menard child and about $20,000 to credit card companies.
In
at least five cases, the complaint says, his uncle's settlement money
was used to pay other clients after he had stolen settlements meant for
those clients.
That scheme was sometimes furthered by forging a signature, the complaint says.
In
one case, the complaint notes, Menard lied to a client, telling her
that she had won a settlement of $150,000, when he had collected
$250,000 for the client.
Menard
was arrested Monday morning by investigators from the DA's office. He
was being held in Milwaukee County Jail. Bail is expected to be set on
Tuesday.
The complaint notes that the investigation is continuing and additional charges may be forthcoming.
Full Article & Source:
Lawyer Robert Menard charged with stealing more than $700,000 from clients, ex-partner and uncle
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