Disbarred attorney says PNC should have caught ex-employee's embezzlement

By David Thomas

(Reuters) - A prominent Washington, D.C., criminal defense lawyer who was disbarred last year is suing PNC Bank NA, alleging it failed to stop his ex-employee from embezzling hundreds of thousands of dollars from him and his law firm.

In a lawsuit filed Monday in D.C. federal court, Bernard Grimm alleged PNC's failure to follow federal law and industry standards allowed his firm's former employee, Katherine Ross, to cash forged checks and transfer client money out of accounts his firm maintained.

In March 2020, PNC notified D.C. disciplinary officials that a check from one of Grimm's client trust accounts bounced, the lawsuit said. That kicked off an ethics investigation that "eventually caused plaintiff to surrender his license to practice," Grimm said.

The D.C. Court of Appeals' June order disbarring Grimm did not detail the underlying claims against him, but a court filing showed authorities were prepared to bring claims against Grimm including "failing to keep complete records, commingling and misappropriation" and "charging an unreasonable fee."

Grimm's lawsuit on Monday alleged he informed PNC multiple times of a fraudulent check scheme involving his accounts, but the bank still allowed Ross to make withdrawals and ignored other safeguards.

"It is difficult to imagine a bank being more incompetent than knowing that is being used as an instrument in criminal fraud scheme and taking no action to stop it," the lawsuit said.

A spokesperson for PNC Bank did not respond to a request for comment.

Ross pleaded guilty to one count of bank fraud in April 2021, stipulating to embezzling at least $320,000 from Grimm's law firm. Grimm alleged in his lawsuit that Ross embezzled at least $725,000 from him "through various methods ... none of which would have succeeded but for" PNC's failures.

In May 2021, Grimm consented to his disbarment, admitting that he violated bar rules requiring lawyers to safeguard client funds.

Grimm said in his lawsuit against PNC that the disciplinary process cost him more than $18,000 in legal fees, which he has been unable to pay.

Ross was sentenced to 30 months in federal prison and ordered to pay $320,000 in restitution to Grimm's law firm. Her lawyer did not respond to a request for comment.

Grimm is represented in the PNC lawsuit by Barry Coburn of Washington's Coburn & Greenbaum. Coburn declined to comment.

The case is Grimm v. PNC Bank NA, U.S. District Court for the District of Columbia, No. 1:22-cv-01006.

For Bernard Grimm: Barry Coburn of Coburn & Greenbaum

For PNC Bank: Not available

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Disbarred attorney says PNC should have caught ex-employee's embezzlement

Advocates eager to pass future legislation addressing Alzheimer’s-related issues

By MetroNews Staff

CHARLESTON, W.Va. — Advocates are excited about possible future legislation addressing the needs of people with Alzheimer’s disease and other neurological disorders after the state Legislature approved a bill on police training during this year’s regular legislative session.

Gov. Jim Justice signed Senate Bill 570 on March 23. The law establishes a training curriculum for law enforcement; the West Virginia Bureau of Senior Services and the West Virginia Alzheimer’s Association will work with state officials on designing courses on identifying people with neurological disorders and addressing matters like elder abuse.

Sharon Covert, the executive director of the Alzheimer’s Association’s West Virginia chapter, said lawmakers have already contacted her organization about other issues and passing impactful measures.

“Our Legislature is interested and willing. They asked us, ‘What else?'” she told MetroNews. “We try to give them the best information that’s out there and really hear from the people in West Virginia and the national level about where should we be and what we should be doing.”

The organization worked with lawmakers as well as law enforcement to draft Senate Bill 570. Covert noted the organization has held training events with agencies before the legislation about identifying people with disorders and appropriate treatment of these individuals.

“We’ve been really fortunate in this state in a lot of ways,” she said. “We haven’t made the news on any encounters with law enforcement. That’s not to say they haven’t happened, but we can now avoid anything in the future if we get this done.”

According to Covert, Gov. Jim Justice will hold a ceremonial bill signing event later this month. The legislation will go into effect on June 9.

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Advocates eager to pass future legislation addressing Alzheimer’s-related issues

Britney Spears’ lawyer shares real reason he took on conservatorship case

Britney Spears’ lawyer shares real reason he took on conservatorship case

Britney Spears’ attorney explains the real reason he decided to take her conservatorship case, despite it being ‘utterly out of the ordinary’.

During his interview with THR, Mathew Rosengart was quoted saying, “I was concerned, even before getting involved, about why this woman appeared to have some of her fundamental rights and civil liberties stripped away.”

“As a former federal prosecutor, I had experience with criminal defendants who were charged with committing heinous crimes, and they had the right to choose their own counsel, yet Britney did not have that right.”

In terms of his personal reasons for taking the case in the first place, Mr Rosengart admitted, “I’ve always detested bullying, even growing up. Bullying a woman is even more unacceptable and abhorrent.”

“It was troubling to me both personally and professionally, and I felt I could help stop it, as a lawyer and otherwise. That’s a pledge I made, and it was really rewarding to be able to help.”

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Britney Spears’ lawyer shares real reason he took on conservatorship case

Bear Lake County prosecutor resigns, is disbarred over conduct violations

by Kalama Hines

Bear Lake County Courthouse | Kalama Hines, EastIdahoNews.com

PARIS — After admitting to what the Idaho State Bar Counsel called “conduct prejudicial to the administration of justice,” Bear Lake County Prosecuting Attorney Joseph R. Hayes has resigned from his position.

In a published discipline notice, the bar counsel says that Hayes resigned in place of disciplinary proceedings after engaging in sexual conduct with people involved in multiple cases he was connected to between February 2019 and October 2021.

Hayes has also been disbarred and cannot reapply for admission to the state bar for no less than five years.

“By the terms of the Idaho Supreme Court’s Order, Mr. Hayes’s name was stricken from the records of the Idaho Supreme Court and his right to practice law before the courts in the State of Idaho was terminated on April 4, 2022,” the notice reads.

According to the notice, Hayes was first accused of acts creating a conflict of interest in May 2019, when he sent sexually explicit messages to a client he was representing in guardianship and divorce cases. He also made inappropriate sexual comments to the client, the notice continues.

Hayes was implicated in similar circumstances in December 2020, when he sent sexually explicit messages to a client he was representing in cases regarding protection orders, divorce and property division. The notice says that the two engaged in sexual conduct on one occasion.

Then, after being sworn in as the county prosecutor in January 2021, Hayes again exchanged sexually explicit messages with a woman who made allegations of domestic violence.

Hayes filed four felony charges against the woman’s husband, the documents show, then engaged in sexual conduct with her “on several occasions” in his law office.

The documents show that Hayes admitted to all allegations.

Bear Lake County Commissioners Bradley Jensen and Rex Payne both told EastIdahoNews.com that they were unaware of the allegations until they received official letters from the state.

“I was pretty shocked,” Jensen said, “because I know Joe Hayes had wanted that job really bad. … All I got from him was a letter that said he was resigning. Since then, I’ve heard that he’s been disbarred.”

Payne said that not only were the commissioners unaware of the circumstances that led to Hayes’ resignation and disbarment, they were never clued into the investigation at any point.

“We really didn’t get into it, as county commissioners. It was handled more by the state bar — it really wasn’t anything to do with us directly,” Payne said. “We were probably the last ones to really have any idea what was going on and didn’t really know until some of these official notices came out the last few days.”

Despite never being involved in the investigation, the commission is now tasked with finding Hayes’ replacement.

“This position is left to the county commissioners (to fill),” Jensen said. “What we will do is appoint somebody for a period of time, or maybe the whole term, what’s left of the term, then it, of course, goes back to election.”

For now, Adam McKenzie, who was appointed as deputy prosecuting attorney by Hayes before his resignation, will serve as the county’s lead prosecutor.

But, in time, the commission will field applications and vet applicants as it prepares to tap a new county attorney. When that decision is made, Jensen said, the commission will have the power to select whether the temporary prosecutor will serve for the remaining three years of what was to be Hayes’ term or a lesser period.

According to Payne, applications have already been received. But, there is no definite timetable for the selection process.

“We haven’t decided when we’re going to actually make that decision, but it will be made in a public meeting, in a county commissioners’ meeting,” Payne said. 

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Bear Lake County prosecutor resigns, is disbarred over conduct violations

Florida Task Force Recommends Changes to Guardianship Laws

by Seth Ellis

The Florida Guardianship Improvement Task Force has released its recommendations to improve the state’s guardianship system. Staffed and sponsored by the Florida Court Clerks & Comptrollers Association, the task force assessed the vulnerabilities and how the state can better protect the best interests of wards.

The task force was assembled in the summer of 2021 amidst the media attention to the #freebritany movement and other abuses of the system. One of the most notable cases is that of Rebecca Fierle, a professional guardian with hundreds of wards across several Florida counties. She has been arrested and charged with abuse and neglect after the death of one of her wards, and is currently awaiting trial. Many of her wards’ family members are also accusing her of stealing from her ward’s estate and calling for an investigation of her financial records, but to date, she has not been charged with any financial crimes.

There is also concern over a bill making its way through the Florida legislature, the Guardianship Jurisdiction Act. The proposed law would make a Florida judge’s orders take precedence over guardianships in other states. While proponents argue that the law would prevent costly legal battles over jurisdictions, others argue that it makes it easier for wards to fall prey to predatory guardians such as Rebecca Fierle and can trap visitors against their will who fall ill while visiting the state.

While there are certainly legitimate cases where an incapacitated individual needs a guardian to represent their interests, there is much work to be done to prevent wards from being exploited and abused by court-appointed guardians.

The Guardianship Improvement Task Force’s Recommendations

In their report, the task force made the following recommendations to improve Florida’s guardianship system:

Creation of a Statewide Database. A data collection system for all guardianship cases in the state will provide objective data for improvements to the system, as well as increase public trust and transparency. There has already been some movement on implementing this recommendation, with a new bill proposed by Representative Linda Chaney, R-St. Petersburg.

Forming a Guardianship Task Force. A permanent and multidisciplinary task force will be responsible for continually assessing the system and suggesting improvements to prevent abuse.

Increasing the Education and Training of Guardians and Creating a Professional Guardian Database. This proposal will create more stringent requirements for becoming a professional guardian and to better track the wards assigned to each guardian to prevent abuse of wards. The database will be available to the public and will include each guardian’s disciplinary history.

Adopting Uniformity in Forms. A uniform guardianship form that is required across the state will help with data collection and tracking when wards are moved.

Education of Judges. Judges should be more fully educated on advance directives, power of attorney, and estate planning.

What To Do If You Have Questions About Guardianship

There is a multitude of laws regarding the guardianship system in Florida, and big changes seem to be underway. If you have questions about a current or potential guardianship situation, a guardianship attorney will have the most up-to-date information and will be able to provide recommendations.

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Florida Task Force Recommends Changes to Guardianship Laws

Former professional guardian abandoned wards' mail, committed crimes: Inspector General report

Investigators reviewed 1,700 documents

 

By: Adam Walser

A new report outlines how former professional guardian Traci Hudson failed to protect elderly people under her care.

A year-long investigation by the Pinellas County Inspector General's Office led to criminal charges and identified new concerns about how Hudson treated her clients.

It's been almost two-and-a-half years since professional guardian Traci Hudson was arrested, accused of using a power of attorney agreement to take $541,000 from a 92-year-old man under her care.

Pinellas County Office of Inspector General

She is currently out of bond awaiting trial.

“She’s still walking the streets," advocate for people in guardianship Hillary Hogue said. "She is still free to go. She has not been held accountable.”

Hogue also served on the Florida Guardianship Improvement Task Force.

Investigators allege Hudson used her ill-gotten gains to make payments on a 4,888 square-foot Riverview home, buy Tampa Bay Buccaneers tickets and go on shopping sprees.

Investigators identify red flags leading to charges

“That case that she’s charged with is a power of attorney case, so totally different than our guardianship cases,” Pinellas County Probate Judge Pam Campbell said in a Nov. 2019 hearing a few days after Hudson’s arrest. “If there are any red flags that are brought to our attention, then we’ll address that at that point in time."

On February 14, 2020, Campbell ordered the Pinellas County Inspector General's Office to investigate all of Hudson's 45 guardianship cases and identify any concerns involving the healthcare or financial matters related to wards under her care.

It turns out there were lots of red flags.

The IG’s Office identified criminal activity in three other cases, leading to 17 new felony charges last year.

One of the alleged victims was Robert Moore.

“She totally destroyed my family,” Moore’s son Ryan Moore said in an interview last year.

Ryan Moore

Ryan Moore said while acting as his dad's guardian, Hudson limited his ability to see his father.

Investigators said she sold Moore's guns at pawn shops, didn’t include them in an inventory of his property and kept the money.

“I asked her about the guns and she said all of the guns were stolen except for one and it was in a police evidence room somewhere,” Ryan Moore said.

“It just destroyed us”

“It was a tough, tough lesson,” Gedi Pakalnis said of the five years he spent fighting the guardianship system.

His great-aunt Genyte Dirse was put into guardianship after selling Pakalnis part of a St. Pete Beach hotel at a below-market rate.

WFTS

Adam Walser and photojournalist Randy Wright interview Gedi Pakalnis

Gedi Pakalnis

Genyte Dirse

A realtor, who previously asked Dirse to list or sell her property, petitioned the court to have Dirse put into guardianship.

Hudson was appointed her guardian by the court.

Pakalnis said during the guardianship, Dirse was abused by a caregiver Hudson hired, then moved into an assisted living facility where she later died due to COVID-19.

Hudson obtained a court order preventing Pakalnis from seeing or talking to his great aunt.

“It just destroyed us,"Pakalnis said. "Not only destroyed our family but physically cost us health-wise, and of course financially."

After interviewing dozens of people and reviewing more than 1,700 pages of bank records, real estate transactions and other transactions, investigators drafted reports on 19 of 21 Hudson’s cases they reviewed.

“Fortunately we have someone who’s working to stay on top of this and digging into this and we’re glad to have the people doing their job,” Pakalnis said.

More than a thousand pieces of wards’ mail abandoned

According to the report, investigators collected and delivered 933 pieces of mail belonging to former wards that were delivered to a PO box at a UPS store in St. Petersburg that Hudson abandoned.

Hudson's criminal attorney, Richard McKyton, told us his client was not allowed to access her PO box after she was removed from her cases, which lead to a mix-up in mail being forwarded to the wards' new guardians.

That mail could have included bills, medical documents, tax information and other important items necessary to provide appropriate care for the wards.

The report says 86 mail items were delivered to the home of another ward but never collected.

“If you have almost a thousand pieces of mail you haven’t retrieved from your PO box, it says you haven’t been doing much,” Hillary Hogue said.

“If I could just say one thing to the community at large… please don't even think about initiating a guardianship concerning your loved ones. And if you hear the word guardianship, run,” she said.

Hudson received money from libel judgment, property sale

The I-Team learned while Hudson was out on bond she continued to make money.

In February, Hudson’s attorney John Hayter took possession of Lesa Martino's home to satisfy a $240,000 libel lawsuit judgment.

Hudson was the guardian of Lesa’s father Roland Martino.

Hudson sued Lesa Martino after she reported allegations of abuse and neglect to state agencies and wrote disparaging remarks about Hudson on websites and social media.

Lesa Martino

Lesa and her father Roland Martino in 2017

Hudson was arrested on the original felony charges months after she received a summary judgment against Martino.

“It’s just so unfair because all I was doing… I was a whistleblower to the corruption and then I get punished,” Martino said.

She is now homeless, living in a motel while she appeals her foreclosure case.

Hudson sold her own home last month for $849,900, which was $256,000 over the amount Hudson paid for it in 2019.

Her attorney attributes the sale to her recent divorce.

A status hearing in Hudson's criminal case has been scheduled for next month.

No trial date has been set in the case.

If you have a story you’d like the I-Team to investigate, email us at adam@abcactionnews.com.

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Former professional guardian abandoned wards' mail, committed crimes: Inspector General report

World War II survivors who became best friends at labor camp unexpectedly reunite after 79 years

by FarahR

Two men who became friends at a labor camp during the Holocaust were unexpectedly reunited after 79 years.

Jack Waksal and Sam Ron endured slave labor together in the Pionki Labor Camp in Poland and were separated after the former fled into the forest. Sam was moved into a different camp and was ultimately freed.

Instagram

Neither knew if the other had survived until Jack attended a dinner in South Florida hosted by the United States Holocaust Memorial Museum. Sam was the honorary speaker at the event held in Boca Raton, where there were other Holocaust survivors in attendance.

When he arrived and saw Sam, Jack said that he thought he knew him from somewhere but couldn’t place it.

“He was standing to the side,” he recalled. “And I said to somebody, ‘I know this guy.’”

Jack Waksal | WPBF

When the event started, a video about Sam’s life and the many camps he survived was shown. It mentioned that he was in Camp Pionki and that his original name was Shmuel Rakowski. That’s when Jack finally realized why he looked so familiar—they were old camp comrades in Pionki.

Jack hurriedly went over to Sam’s table and said, “Sam! You are alive!”

“This one guy jumped out from the house and came over to kiss me. ‘You’re my brother! You’re my brother!’” Sam said of the emotional moment.

“Oh, I was all excited,” he recalled. “This was unusual. It’s 79 years now. We’re 97 years old!”

To find someone else who went through exactly what they did was significant.

Sam Ron | WPBF

“What we went through in our life is so hard to describe,” Jack explained. “There are not many more survivors left. We are just a few survivors.”

Jack and Sam were only teenagers when they worked together in Pionki.

“We were pushing coal to the oven to make heat to make power, and Jack said he worked at the same place!” Sam described their time in the camp. “Hard work, bad conditions, cold, hunger, hundreds of people died. It wasn’t uncommon to wake up in the morning and find the person next to you cold.”

He also remembered the fear of being randomly selected to be sent to the Auschwitz concentration camp and the time he had to go without food for over two weeks. People were forced to eat the bark off trees to survive.

Instagram

Jack said there were days he had to be on his feet for 24 hours or risk being shot. Eventually, he escaped to the forest.

Sam said hunger was the “worst thing” at the concentration camps. In total, he survived five different camps during the war, including the one in Poland.

Both managed to immigrate to the United States, specifically Ohio, where they lived for many years before moving to South Florida. They were unaware of each other’s existence until that fateful dinner.

Sam occasionally makes school appearances to share his experiences with the younger generation.

“I try to teach them not to hate, and to have a lot of hope and believe in yourself, this is what I did, this is how I survived because I believe in myself,” he said.

Instagram

Ari Odzer, an NBC reporter, said the pair have avenged themselves against Adolf Hitler by living long, successful lives, running businesses, and enjoying the love of their families.

“It’s an amazing story. I was so taken by this,” Sam said of their reunion. “It got me a lot of hope. I was very excited about it.”

“You think it’s never going to happen,” Jack said. “But it did happen.”

Jack lives in Bal Harbour while Sam lives in Boca Raton. The long-lost friends are 40 miles apart but are determined to keep in touch. After all, they surely have a lot of stories to tell each other—all spanning 79 years of their lives.

Learn more about this incredible reunion in the video below.

 

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World War II survivors who became best friends at labor camp unexpectedly reunite after 79 years

Disbarred Chester County attorney faces more criminal charges

Thomas K. Schindler

By Michael P Rellahan

WEST CHESTER —  A once prominent but now discredited and disbarred Chester County attorney has been arrested again by Chester County Detectives and charged with two separate cases of stealing $86,000 from former clients, essentially looting an escrow account that had been set up to handle the victims’ funds.

Thomas K. Schindler, who was disbarred in 2020, is charged with multiple counts of theft by unlawful taking, theft by deception, and theft by failure to make the required disposition of funds. He was arraigned by Magisterial District Judge Albert Iacocca on March 29 and released on bail.

Schindler had been awaiting trial before Chester County Common Pleas Court Judge Jeffrey Sommer on charges of stealing nearly $1 million from former clients who hired him for their divorce. The charges stemmed from a 2018 financial agreement with the victims where he failed to make required transfers of proceeds from the sale of their home.

The current charges deal with two clients, the first involving a man who hired him to represent him in a federal criminal case in 2019 and who allegedly paid him $95,000 in legal fees. The case was taken over by Schindler’s former co-counsel at the Schindler Law Group, Stephen Patrizio, after Schindler was disbarred. When the case was resolved and the man was ordered to pay a fine, he told Patrizio about the $95,000 he had given Schindler.

Even though Patrizio pressed Schindler to return the money on several occasions and Schindler allegedly promised to do so, the funds were never recovered. When Chester County Detective Keith Cowdright investigated Schindler’s legal escrow account, he found that Schindler had withdrawn all but $4,100 in 2019.

The second case involves a man who had hired Schindler to handle his divorce in 2014. As part of the settlement, a check was made out to the man for $100,000 from the sale of the former couple’s home. That check went to Schindler’s escrow account.

Despite making attempts to receive the funds, according to Cowdright’s affidavit, the man only received $30,000.  Detectives reviewed the bank records of Schindler Law Group in 2021 and discovered that after fees and payments for the victim’s divorce, the victim had not received the $2,070 that he was owed.

“Clients place enormous faith and trust in their lawyers to always have their best interests at heart, but that is broken when lawyers put their own greed above anything else,” said District Attorney Deb Ryan in announcing the arrests. “In stealing his clients’ money — and breaking their trust — Thomas Schindler also tarnished the reputation of the many good lawyers in our community. My office will push to hold him accountable under the law for his criminal actions.”

Schindler, 61, of Newlin, was once one of the most well-known and well-liked criminal defense attorneys in the Chester County Justice Center. A county native and son of a well-respected child psychiatrist, he is a graduate of Westtown School and first worked in the D.A.’s Office as a prosecutor, and then went to work for the law firm of Lamb, Windle & McErlane in West Chester.

He left that firm in the 1990s and opened his own private practice with a succession of partners, finally opening up the Schindler Law Group in Kennett. He handled all manner of criminal cases — including representation of one of the largest drug dealers in county history, Ricky Maitre — as well as family law matters. He was disbarred on consent in 2020, although the specifics behind that action have not been made public.

He is represented in all of the cases by defense attorney Vincent DiFabio of Tredyffrin. Deputy District Attorney William Judge is the assigned prosecutor.

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Disbarred Chester County attorney faces more criminal charges

80-year-old woman in ICU after being dragged during purse-snatching

by: Nick Veronica

CHEEKTOWAGA, N.Y. (WIVB) – An 80-year-old woman remains in intensive care after being seriously injured when a man in a New York grocery store parking lot tired to steal her purse Tuesday night, Cheektowaga, New York, police said.

Police said witnesses observed a man in a white Jeep grab the woman’s purse while she was in the parking lot Tuesday. The woman tried to hold onto the purse and was dragged by the vehicle, they said.

Someone who witnessed the event followed the Jeep and was able to record the license plate. Police said the vehicle had been reported stolen on April 1.

Buffalo Police were informed of the incident and located the vehicle parked a few miles away. When police later confronted the suspect, he ran, but was apprehended in a backyard, they said.

The suspect, identified as 32-year-old Michael T. Sawyer of Buffalo, was charged with attempted robbery and assault. He is being held on $200,000 bail.

Police said they “developed Michael Sawyer as a suspect based on the stolen vehicle report and past interactions with the vehicle and its operator.” Sawyer is known to police and has been arrested 24 times, including 14 previous felony charges, they said.

Sawyer has also been charged for leading police on vehicle pursuits and reckless driving 10 times since 2016, police added.

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80-year-old woman in ICU after being dragged during purse-snatching