Showing posts with label disbarred attorney sentenced to prison. Show all posts
Showing posts with label disbarred attorney sentenced to prison. Show all posts

Saturday, April 2, 2022

South Whitehall attorney sentenced to prison for stealing $500,000 settlement from father of man killed in drunken-driving crash

By Peter Hall

A disbarred South Whitehall Township attorney was sentenced to prison Tuesday for stealing more than $500,000 from a client who hired him to pursue an insurance settlement on behalf of his dead son’s estate.

A Lehigh County jury convicted Glenn D. McGogney in February of theft by deception for concealing the settlement from his client for more than five years and keeping a third of the money as an attorney fee. Another lawyer uncovered the theft.

McGogney, who was disbarred in 2012 for misleading a partner in a failed Bucks County strip club venture, also pleaded guilty Tuesday to forgery for doctoring a document presented as evidence in his disbarment hearing and no contest to a charge that he falsified a receipt stating that he had paid $52,000 in estate taxes on behalf of his sister-in-law when he had kept the money for himself.

McGogney was sentenced to two to five years in the theft case and two years of probation in the forgery and falsified receipt cases. With the benefit of a program for first-time offenders, McGogney could be released from prison in 18 months, his attorney, Gavin Holihan said. The Pennsylvania attorney general’s office filed the charges in all three cases.

“It doesn’t appear to represent the finest hour for the legal profession,” Holihan said.

Attorney General Josh Shapiro said in a statement that lawyers take an oath to serve the best interests of their clients, to act ethically and to follow the law.

“Mr. McGogney swindled his victim out of more than $500,000 of their hard-earned money. As a result of this conviction, he has been held accountable, and will never again be able steal from his clients,” Shapiro said.

The sentencing Tuesday is the culmination of legal difficulties that began 14 years ago with McGogney’s efforts to save a foundering Milford Township strip club, Coyotes Show Club, by bringing in investors.

One was John Sibley, who needed $50,000 to repay a partner who had pulled out of a land development deal. According to court records, McGogney persuaded him to mortgage the equity in the land Sibley and the partner had planned to develop and invest the money in McGogney’s club. Sibley said he believed that McGogney represented him in the transaction because McGogney prepared the mortgage papers. Sibley later learned that there were liens on the property and that it had been listed for sheriff’s sale just days after he signed the mortgage papers.

Sibley sued McGogney alleging breach of contract and fraud and reported him to the Pennsylvania office of disciplinary counsel, which prosecutes misconduct allegations against attorneys. In a hearing, McGogney presented as evidence a document purporting to show that Sibley understood that McGogney represented the strip club and not Sibley.

Sibley testified that he had never seen the document and said he believed that his signature had been “cut and pasted” from another document. A forensic document examiner later determined that Sibley’s signature had been copied from another document, court documents say.

In the theft case, George Fetchko of Northampton hired McGogney to represent his son’s estate after Nicholas Fetchko was killed in a drunken driving crash in 2010. Over the next five years, George Fetchko inquired of McGogney about a settlement with Erie Insurance over his son’s death but received only excuses about the settlement being delayed, court documents say.

In 2015, George Fetchko hired another attorney who obtained court documents showing that Erie had settled the case in 2011 for $510,000. McGogney later handed over about $330,000 of the settlement proceeds but kept one-third for himself as an attorney fee, court documents say. In addition to his prison sentence, McGogney was ordered to repay more than $170,000 in restitution.

The attorney general’s office also investigated after a Delaware County attorney told an agent that McGogney assisted his client, McGogney’s sister-in-law Carole Knopf, with her husband’s estate following his death in 2014. Although McGogney had been disbarred, he represented Knopf on a pro bono basis, court records say.

In the course of settling the estate, McGogney told Knopf that she needed to pay $52,000 in inheritance taxes to the Pennsylvania Department of Revenue. Knopf wrote a personal check for the amount and gave it to McGogney to remit to the state through the Lehigh County register of wills.

When Knopf hired the Delaware County attorney to file her taxes in 2015, the attorney contacted McGogney for records from the estate needed to complete the tax returns. He wrote to McGogney that the register of wills had no record of the estate and had not received an inheritance tax return.

The lawyer later received a fax from McGogney with a copy of an inheritance tax receipt. When the lawyer sent a copy of the receipt to the register of wills for confirmation, the Lehigh County solicitor’s office informed him that there was no record of the inheritance tax payment being made and that the receipt number on the receipt McGogney provided corresponded to another person’s estate.

The cases were prosecuted by Deputy Attorney General Kirsten E. Heine.

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Sunday, February 7, 2021

Disbarred Southern California Lawyer Sentenced to 15 Years in Prison for Multimillion-Dollar Fraud Where Clients Were Victimized by Forged Judges’ Signatures, DOJ Reports

February 5, 2021 - LOS ANGELES – A disbarred lawyer was sentenced on Thursday to 180 months in federal prison for stealing more than $4 million from his clients through a variety of US Department of Justicemeans, including collecting fees for work he never performed.

          Shant Ohanian, 38, of Burbank, was sentenced by United States District Judge John A. Kronstadt, who stated that he intends at a future date to order Ohanian to pay restitution in an amount exceeding $2.5 million. Ohanian pleaded guilty in June 2019 to one count of wire fraud and has been in federal custody since the following month, when his bond was revoked because of allegations that he was continuing to defraud his clients.

          Ohanian was a licensed California lawyer from January 2012 until his disbarment in December 2017. During his legal career, Ohanian defrauded clients in need of his legal assistance in a variety of cases, including immigration applications, commercial disputes, divorce petitions and personal injury claims. In each case, Ohanian took no meaningful action on his clients’ behalf despite billing them for thousands of dollars or asking them to pay millions of dollars in litigation-related fees.

          In some cases, Ohanian’s deception caused his victim clients to lose their opportunities to obtain significant financial or legal remedies because of wrongs they suffered. One client, a woman who suffered serious injuries in a fall at South Coast Plaza mall in Orange County, saw the statute of limitations expire in her case before she realized Ohanian defrauded her. Ohanian admitted to sending the victim a phony settlement agreement from the mall and, after she threatened to report him to the State Bar of California, a check for $25,000 that later turned out to have been cancelled.

          In May 2012, two clients hired Ohanian to represent them in a business dispute, but he failed to take any steps to effectively litigate their claims despite telling them for six years that the case settled in their favor. Ohanian ultimately provided to them counterfeit checks totaling over $3.1 million to deceive them.

          Other clients defrauded by Ohanian had sought representation for immigration-related issues. Some of them were green card applicants, while others were caught in foreign war zones and sought refugee status in the United States. In every instance, Ohanian took their money, claimed he filed the appropriate paperwork, but did nothing.

          To cover his tracks for lying for years to one client who had hired Ohanian to help obtain a green card, Ohanian claimed to have sued the federal government for failure to produce the green card. Ohanian continued his deception by using counterfeit emails and court orders that included the forged signatures of a state court judge and multiple other government officials. Ohanian falsely told the client that the U.S. government had been ordered to pay over $13.5 million in damages.

          In other cases, Ohanian made multiple spoofed telephone calls to a client seeking recovery of a $500,000 deposit related to a failed commercial real estate transaction for an Ontario shopping center. In these calls, Ohanian pretended to be either bank officials or government officials. During that litigation, Ohanian falsely informed the victim that the victim had prevailed in the case and would receive $7.2 million in damages plus penalties.

          Ohanian’s victims suffered actual losses exceeding $4 million.

          In a related case, Ohanian’s wife, Silva Sevlian Ohanian, 33, of Burbank, has been charged with one count of wire fraud. She pleaded not guilty to the charge and is currently scheduled to go to trial on September 28.

          This matter was investigated by U.S. Immigration and Customs Enforcement Office of Professional Responsibility and the State Bar of California.

          This case was prosecuted by Assistant United States Attorneys Aron Ketchel and J. Jamari Buxton of the Public Corruption and Civil Rights Section.

Source: DOJ

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