Showing posts with label former attorney sentenced. Show all posts
Showing posts with label former attorney sentenced. Show all posts

Thursday, February 1, 2024

DeKalb County attorney sentenced to 20 years for stealing $250k from clients, some elderly

by Austen Shipley

(Wikicommons/YHN)

A former DeKalb County attorney who once hoped to be a judge will be spending the next twenty years behind bars. Teresa Darwin Phillips, 43, of Sylvania, was convicted of accessing, stealing, and spending approximately $250,000 from multiple clients.

Attorney General Steve Marshall announced the news Monday.

“Trust is fundamental to the attorney-client relationship. Once a lawyer has gained the trust of a client, particularly an elderly client, they owe that client the highest degree of honestly and loyalty,” said Marshall. “To see that trust betrayed on such a wide scale warrants a severe reaction from the justice system. Our team saw to that.”

“This case should serve as yet another warning to attorneys across our state seeking to take advantage of vulnerable clients—you will be found out and held accountable.”

A 2020 investigation led by the Dekalb County District Attorney’s Office exposed the former lawyers scheme to use funds given to her by clients and other elderly persons for whom she had been appointed as legal guardian or conservator for her own gain.

DeKalb District Attorney Summer Summerford, said that her office will never tolerate those who target the vulnerable.

“Our community deserves to have attorneys who take their jobs seriously and works with integrity and honesty,” said Summerford. “My office will not stand for the intentional, premeditated targeting of vulnerable people who rely on attorneys for help in times of need. Although this sentence will not replace what the victims lost, hopefully it will provide the closure in this long case and deter other attorneys from making the same mistakes.”

Phillips previously pled guilty on November 7, 2022, to nine felony offenses.

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DeKalb County attorney sentenced to 20 years for stealing $250k from clients, some elderly

Tuesday, October 4, 2022

Rogue attorney sentenced to 37 months for defrauding clients with fake judgments

The lawyer told his clients he filed complaints and motions on their behalf while doing nothing of the kind.

by Edvard Pettersson

The United States courthouse in downtown Los Angeles. (Edvard Pettersson/Courthouse News)

LOS ANGELES (CN) — A disbarred attorney was sentenced to 37 months in federal prison after he pleaded guilty to defrauding his clients through faked judgements with forged signatures.

Matthew Elstein formerly with national law firm Tressler LLP, was also ordered to pay $254,000 in restitution at his sentencing Monday in Los Angeles.

U.S. District Judge Mark Scarsi wasn’t persuaded that a degenerative brain condition Elstein, 52, claims to suffer from was either at the root of his criminal conduct or a reason not to sent him to prison. Instead, the judge sentenced him to the prison term prosecutors had asked for.

Elstein admitted last year that over a four-year period he had told his clients that he filed complaints, motions and other pleadings in court when, in fact, he hadn’t done anything. He billed them from legal services that he never rendered and for expenses he never incurred. He would also send his clients fraudulent court orders, settlement agreements, and other documents to convince them he had resolved the cases in their favor.

In June 2016, Elstein lied to a corporate client that they had won a $52 million default judgment and sent them a fake court order with a forged signature from the judge even though he never even filed a lawsuit for them. He then doubled up on his bluff by telling the client that the case was under seal because of a federal investigation and presented them with a fake settlement agreement between with the U.S. attorney’s office in Sacramento. The company only discovered the fraud when they reached out to the U.S. attorney’s office to authenticate the settlement.

“Defendant caused irreparable financial, reputational and emotional damage to his victims that exceeds the mere monetary damage caused by a typical fraud,” prosecutors with the U.S. attorney's office in LA said in their sentencing memorandum. “Defendant’s motive appears fueled not only by greed but also malice.”

One of Elstein’s victims spoke in court and said he will never salvage his reputation, which Elstein destroyed.

“The damage he did is just incapable of ever being repaired,” the man said.

In a tearful bid for clemency, Elstein told the the judge that he understood the pain he had caused and said a degenerative condition of his frontal lobe may soon diminish his mental capacities. His lawyer told the judge that Elstein’s medical condition contributed to his behavior spinning out of control.

After he had already agreed to plead guilty, and his state bar license was inactive, Elstein accepted $3,500 from a new client to help him secure an inheritance. According to a Redondo Beach Police Department officer, who listened in on a call between Elstein and this person, Elstein appeared to be delaying and “scamming” the man.

Elstein’s lawyer, Candace Fields, argued that her client had already been punished enough for his malpractice by losing his law license and asked for a sentence of home confinement or, at most, just months in prison. She also pointed out that Elstein refunded the $3,500 he accepted even though his license was no longer active.

Full Article & Source:
Rogue attorney sentenced to 37 months for defrauding clients with fake judgments

Wednesday, February 16, 2022

Disgraced former attorney sentenced to nearly six years in prison for litigation advance fraud scheme

 Department of Justice 

U.S. Attorney’s Office

Northern District of Georgia
 


 
FOR IMMEDIATE RELEASE
Tuesday, February 15, 2022

 

 

 

 

Disgraced former attorney sentenced to nearly six years in prison for litigation advance fraud scheme

ATLANTA - Chalmer “Chuck” Detling, II, a disbarred attorney, has been sentenced to prison after being convicted by a jury of wire fraud and aggravated identity theft. Without their knowledge or authorization, Detling used his clients’ identities—sometimes repeatedly—to obtain dozens of fraudulent litigation advances, totaling over $400,000.

“Detling betrayed the trust of his clients, business associates, friends, and family, all to steal money,” said U.S. Attorney Kurt R. Erskine. “This tough but fair sentence should remind those considering similar behavior about the consequences of those decisions, especially licensed professionals who are considering exploiting their clients in a time of need.”

“Detling violated the trust of the clients that hired him and used his position as an attorney not to pursue justice, but to pursue a fraud scheme for personal gain,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “Because of his self-interest and greed he has not only thrown away his career, but will spend time in prison for his crimes.”  

According to U.S. Attorney Erskine, the charges and other information presented in court: Detling was the owner and operator of the Detling Law Group (which later changed its name to Detling Cole LLC), a personal injury law firm based in Marietta, Georgia. While running his law firm, Detling obtained fraudulent “litigation advances” in the names of his clients, without their knowledge or consent, from financing companies. These litigation advances—essentially high interest non-recourse loans—are intended for personal injury plaintiffs to cover non-litigation related expenses (e.g., living and medical expenses) while their cases are pending. In exchange for a litigation advance, the plaintiff agrees to repay the money received plus interest when his or her case settles or ends favorably at a trial. Because these are high interest advances, plaintiffs typically seek them out only as a matter of last resort.

From October 2014 to April 2016, Detling applied for and received dozens of fraudulent litigation advances, stealing hundreds of thousands of dollars. Detling submitted applications that were purportedly signed and executed by his respective clients, but Detling knew when he submitted the agreement paperwork that the clients had not actually executed the agreements.  He did so even after several clients expressly told him they did not need or want such financing. Detling was able to conceal from his clients that he had obtained the fraudulent advances by having the funds wired or deposited into his law firm’s Interest on Lawyer Trust Account (“IOLTA”) accounts.

Detling was able to secure these fraudulent litigation advances without his clients’ knowledge in part because the financing companies did not require the clients to be present when applying for the litigation advances or receiving the disbursements. He further concealed the fraud from the financing companies by exploiting the trust they placed in him as an attorney, by stringing them along with lies about the status of his clients’ cases and the possibility of future repayment. Detling also executed the scheme in part by submitting forged documents to the financing companies, including a doctored offer letter from an insurance company in which he claimed they offered $250,000 when in fact they offered $2,000 to settle a case.

While Detling was defrauding the financing entities, he was already subject of multiple investigations by the State Bar of Georgia (“Georgia Bar”) involving professional misconduct, including into his alleged mismanagement of client funds and settling of cases without client authority. Detling’s scheme ultimately unraveled when the Georgia Bar received an anonymous note in early May 2016 notifying it about a subset of the fraudulent litigation advances. Shortly after receiving this information, the Georgia Bar alerted the financing companies, Detling’s clients, and the FBI of the apparent fraud. Nonetheless, when subsequently deposed by the Georgia Bar, Detling repeatedly lied under oath about his knowledge and involvement with the fraudulently obtained litigation advances.

As a result of the Georgia Bar’s investigations, on September 1, 2016, the Georgia Supreme Court issued an emergency suspension of Detling’s law license. On October 30, 2016, the Court accepted Detling’s petition to voluntarily surrender his law license, characterizing it as “tantamount to disbarment.” Detling is no longer licensed to practice law in Georgia or elsewhere.

Chalmer “Chuck” Detling, II, 45, of Marietta, Georgia, was sentenced on February 10, 2022, by U.S. District Judge Leigh Martin May to five years and ten months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $254,837.89. He was originally charged by a federal grand jury in August 2018 with multiple counts of wire fraud and aggravated identity theft. Following an eight-day trial, a jury convicted Detling of four counts of wire fraud and five counts of aggravated identity theft on November 1, 2021.

This case was investigated by the Federal Bureau of Investigation with assistance from the State Bar of Georgia.

Assistant U.S. Attorneys Alex R. Sistla and Samir Kaushal prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Source:

Wednesday, November 17, 2021

An attorney took nearly $1 million from his cousin's estate. Now he will spend up to 30 months in prison.


by Christopher Dornblaser

A Philadelphia-based former attorney will spend up to more than two years in prison for stealing almost $1 million from his cousin's estate.

On Monday, Aaron S. Friedmann, 63, was sentenced to 15 to 30 months in state prison for stealing $981,023 from Dr. Sheldon S. Farber, who had named Friedmann as the executor of his will, according to a Bucks County District Attorney's Office news release.

Common Pleas Judge Wallace Bateman Jr. also sentenced Friedmann to 10 years of probation, and ordered he pay back what he stole.

The money, the DA's office said, was meant to go to charity organizations.

Friedmann, of Conshocken, pleaded guilty in August to theft by failure to make required disposition of funds, theft by unlawful taking, receiving stolen property and access device fraud. All charges are felonies.

Lower Southampton police began its investigation in March 2017, when a lawyer representing Farber's estate reported the theft. Farber died four years earlier.

The attorney told authorities that Farber created a will in December 2006, and named Friedmann the executor.

Friedmann was an attorney at the Disability Law Advocates Group in Philadelphia, and handled monetary aspects of Farber's estate, according to the DA's office.

Investigators found that a check for $200,000 was written out from Farber's estate and deposited into an account owned by the Disability Law Advocates Group in February 2013, the release states.

Officials found an additional 81 fraudulent transactions were committed by written checks or withdrawals from Farber's estate linked to the advocate group's account or Friedmann's personal account, according to authorities.

Friedmann's law license was suspended for his handling of the estate in 2017. He was disbarred a year later, according to state records.

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Saturday, September 25, 2021

More than $150K awarded to victims of former local attorney accused of stealing $2M


by Parker Perry

Sep. 22—Clients of a former local lawyer received compensation from a fund that helps victims of attorney thefts after their lawyer pleaded guilty in a case accusing him of stealing about $2 million.

"Former clients of former attorney Brian M. Wiggins were reimbursed a total of $154,175 as a result of Wiggins' theft of client funds. Wiggins resigned from the practice of law in Ohio, with discipline pending, in April 2021," an article on Court News Ohio says. Court News Ohio is a service of the Office of Public Information of the Supreme Court of Ohio.

The Board of Commissioners of the Lawyers' Fund for Client Protection voted to award the money earlier this month, according to the website. The money is from registration fees paid by Ohio lawyers.

Wiggins was sentenced to serve five years in prison earlier this year after pleading guilty in Greene County Common Pleas Court. He was also ordered to pay back about $1.9 million in restitution.

He is currently incarcerated with the Ohio Department of Rehabilitation and Correction.

Wiggins allegedly mishandled several estates or trusts he represented and spent the money on cosmetic surgeries, child support, gambling, property, a boat and jewelry.

"The bulk of the charges in the indictment allege fraudulent activity related to transfer of estate and/or trust funds from the estate of a man named Ronald Lentz," Greene County prosecutor David Hayes said during a March 2020 media briefing.

Lentz, of Beavercreek, died in August 2018. Wiggins was the attorney of the estate as well as the trustee of the trust, which were valued at more than $3 million, Hayes said. The majority of the estate was to benefit St. Jude Children's Research Hospital and Smile Train, a nonprofit for children with cleft lips and palates.

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Tuesday, January 15, 2019

Former attorney sentenced to four years in state prison

Albert Boasberg
More than three years after suspicions were raised about an attorney who failed to pay for the long-term care for a 92-year-old woman and her disabled and dependent son, the 83-year-old Daly City resident who once served as the mother and son’s power of attorney was sentenced to four years in state prison on convictions of felony elder fiscal abuse and one count of insurance fraud.

In delivering Albert Boasberg’s sentence Friday, Judge Stephanie Garratt said she felt heartbroken for the male victim, who is in his 60s and living at the Burlingame Long Term Care Center, and the life he will live after someone he considered a close friend squandered funds his mother saved for his care.

Acting as the financial and medical power of attorney for the elderly woman, who is living with dementia at the Marymount Greenhills Retirement Center in Millbrae, as well as her son, Boasberg is said to have embezzled nearly $460,000 from the woman and her son between 2010 and 2014.

Instead of helping the 63-year-old man maintain the level of care he was supposed to receive, Boasberg had him sign over everything he had so the attorney could take trips to Canada and the Philippines and pay off credit card debt he and his wife accrued, noted Garratt. She added the man could not later offer an explanation as to why he would cede his assets to Boasberg to his own detriment and did not understand what was going on at the time.

Having attempted to end his life in August, the man who once considered Boasberg a friend will now likely never leave the care facility because the attorney acted in his own self-interest, she noted.

“This person is living in hell and probably will for the rest of his life,” she said. “It comes down to greed and that’s all it is.”

Boasberg is believed to have filled out 12 life insurance applications using false information about the man’s medical history and listing himself as the beneficiary. He also allegedly stole some $17,000 from the man’s mother over the course of four years and used the funds he took for personal reasons, including diversion of some $100,000 to his wife’s home country, the Philippines, and luxury vacations in Las Vegas, prosecutors said previously.

The thefts were discovered when both facilities, where the victims receive 24-hour care, reported his failure to make monthly payments for their care to the county Health System’s Adult Protective Services, which resulted in his removal as the victims’ power of attorney in 2015. The county’s Public Guardian has been the victims’ conservator after Boasberg was removed as their attorney, according to prosecutors previously.

Released on his own recognizance after his July 10 plea deal, Boasberg was given an opportunity to make progress on the restitution he would owe the victims, noted Deputy District Attorney Kristin Nimau. But he was remanded back into custody in August after it was discovered he violated a condition of his release from custody by practicing law with elderly clients and had surrendered an expired passport instead of a valid one.

Boasberg faced a three-year prison term when he pleaded to his charges in July, and his defense attorney Adam Gasner asked Garratt to consider the maximum sentence once set for his client just before he was sentenced Friday. Gasner acknowledged the egregious nature of his client’s actions, and noted Boasberg is remorseful for his behavior with regard to the victims as well as in violating the terms of his release earlier this year, when he was winding down his legal practice.

Having taken on several pro bono cases in his 60 years as a lawyer in California, Boasberg is a man of advanced aging with non-violent convictions and who is committed to making the victims whole again, said Gasner, who noted several character letters had been submitted on behalf of his client. At 83 years old, Boasberg is a first-time offender likely to suffer physically in a prison environment, where he will serve his sentence those who have committed serious, violent crimes and been in and out of prison, he said.

“He took advantage of a position of trust with a client and friend,” he said. “The reality is there is a totality here and there are other characteristics of the defendant that shouldn’t be overlooked.”

Nimau said Boasberg’s actions left the victim in a depressive state and with few options for his required 24-hour care, noting Boasberg squandered the opportunity to return some of the funds he stole from him. In advocating for a four-year prison sentence, Nimau underscored the permanence of Boasberg’s actions.

“The financial harm Mr. Boasberg has inflicted on both victims in this case is irreparable,” she said. “They will live with this harm for the rest of their lives.”

Boasberg, who will receive 376 days credit for time served, said he was sorry and remorseful for his actions and appeared to wince when Garratt rebuked him for living the high life with his wife at the expense of the victims, to whom he is expected to pay $456,782 in restitution.

“It may be non-violent but it certainly isn’t non-serious,” said Garratt. “The level of greed here is disgusting.”

Full Article & Source: 
Former attorney sentenced to four years in state prison