Former Portland lawyer who embezzled millions from clients sentenced to 14 years in prison

Author: Kyle Iboshi (KGW)

PORTLAND, Ore. — A Multnomah County Circuit Court judge on Wednesday sentenced former Portland attorney Lori Deveny to 14 years in prison for stealing millions of dollars from her clients.

The state sentence comes on top of Deveny’s federal sentence of more than 8 years. The two sentences will run concurrently, meaning they'll be served at the same time.

Prosecutors alleged Deveny stole money from her clients by forging insurance checks, stealing the funds and lying to her clients about the payouts. According to investigators, Deveny defrauded at least 135 clients out of roughly $4.5 million. She used the money to pay for her extravagant lifestyle, including big game hunting trips in Africa, a home remodel and expensive cigars, according to prosecutors.

Deveny pleaded guilty in state court to 28 counts, including aggravated theft and identity theft.

“To all the victims who came to me in physical or emotional pain, who shared their stories and their lives with me, I can only tell you how sorry I am that instead of helping you, I inflicted more pain,” Deveny said during Wednesday’s hearing.

Defense lawyer Wayne Mackeson asked for leniency by claiming Deveny was trapped in an abusive relationship.

Deveny, who surrendered her law license in Oregon during May of 2018, wore a standard jail uniform while in court.

“I want each individual to know that I did not set out to hurt them. I did not choose them to be a target, but I did fail to see them,” said Deveny. “I see them now and will always feel an obligation to them.”

State prosecutor Scott Healy said Deveny left her clients with unpaid medical bills and mortgages, lost savings and lost jobs.

“Don’t make the mistake of thinking that she has one ounce of remorse about what she did to these victims over the course of 18 years,” Healy told Judge Jerry Hodson.

As a result of the case, the Oregon State Bar raised its cap on how much victims of a dishonest lawyer can claim from the bar’s client security fund. Additionally, state lawmakers passed legislation that requires insurance companies notify beneficiaries when they send settlement checks so the client will know money is available at the same time as the lawyer.

The Oregon State Bar has called the Deveny case the worst fraud by a single lawyer in state history.

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Former Portland lawyer who embezzled millions from clients sentenced to 14 years in prison

See Also:
Former Portland Attorney Pleads Guilty to Embezzling Client Funds

Former Portland Attorney Pleads Guilty to Embezzling Client Funds

Department of Justice

U.S. Attorney’s Office

District of Oregon

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FOR IMMEDIATE RELEASE

Monday, June 27, 2022

 

Former Portland Attorney Pleads Guilty to Embezzling Client Funds

PORTLAND, Ore.—A former Portland attorney pleaded guilty today to multiple felony charges after perpetrating a scheme to defraud her clients and use the proceeds to pay for personal expenses.

Lori E. Deveny, 56, pleaded guilty to mail, bank, and wire fraud; aggravated identity theft; money laundering; and filing a false tax return.

According to court documents, between April 2011 and May 2019, Deveny systematically stole funds she held in trust for her clients. The funds were derived from insurance proceeds due and payable to her clients. Deveny is accused of forging client signatures on settlement documents she sent to various insurance companies, making unauthorized transfers of funds to personal accounts and falsely telling clients that the insurance companies were to blame for delays in settling claims. Many of Deveny’s clients never received the insurance payout they were owed.

Deveny used the proceeds of her scheme to pay for personal credit card and loan payments, numerous big game hunting trips to Africa and the resulting taxidermy costs, other vacations, her husband’s photography business, home remodeling, expensive cigars and other expenses associated with a lavish lifestyle.

On May 7, 2019, a federal grand jury in Portland returned a 24-count indictment charging Deveny with mail, bank, and wire fraud; aggravated identity theft; money laundering; and filing a false tax return.

Deveny will be sentenced on November 23, 2022, before U.S. District Court Judge Michael W. Mosman. 

As part of her plea agreement, Deveny has also agreed to pay restitution in full to her victims as determined by the government and ordered by the court.

Mail and wire fraud are punishable by up to 20 years in prison and money laundering is punishable by up to 10 years. All three offenses carry maximum fines of $250,000 or twice the gross gains or losses resulting from the offense and three years’ supervised release. Bank fraud is punishable by up to 30 years in prison, a $1 million fine, and five years’ supervised release. Filing a false tax return is punishable by up to three years in prison, a $250,000 fine or twice the gross gains or losses resulting from the offense, and one year of supervised released. Aggravated identity theft is punishable by up to two years in prison running consecutive to any other carceral sentence imposed.

U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by IRS-Criminal Investigation and the FBI and is being prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.

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Former Portland Attorney Pleads Guilty to Embezzling Client Funds