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White-Collar Crime

Add $1M More to Funds Ex-Counsel of Crowell & Moring Is Accused of Taking from Client Trust Accounts

Posted Nov 17, 2011 6:32 PM CDT
By Martha Neil

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Another lawsuit has been filed against Crowell & Moring, accusing the firm of failing to exercise proper control over a former counsel who allegedly stole from multiple real estate client trust accounts.

Douglas Arntsen, 33, is accused in a New York state-court lawsuit of embezzling $1 million or more from a trust account for real estate client BCN 16th ST, reports Reuters.

He is currently being held in Hong Kong while awaiting an extradition hearing concerning some $5.5 million he was previously accused of embezzling from other real estate clients.

Crowell & Moring and a partner named as a defendant in the suit declined to comment when contacted by Reuters.

Attorney David Pfeffer of Tarter Krinsky & Drogin is representing BCN. He said his client asked Crowell & Moring to return the $1 million, to no avail, before filing the Manhattan Supreme Court suit. "We felt it was necessary to protect our client's interest in the $1 million," he said.

Additional coverage:

ABAJournal.com: "Client Sues Crowell & Moring, Claims Law Firm Can’t Account for $5.5M in Escrow Money"

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