Appeals Court Upholds Chicago Lawyer's Bankruptcy Fraud Conviction
A federal appeals court has upheld the bankruptcy fraud conviction of a suspended Chicago lawyer who billed clients for work he never did or that his paralegal performed.
Thomas O’Connell Holstein, who operated a firm called Lawline, has been sentenced to a year and a day in prison on nine counts of bankruptcy fraud and making false statements in a bankruptcy proceeding.
The 7th U.S. Circuit Court of Appeals in Chicago, in an Aug. 18 decision (PDF) said the evidence was sufficient to establish behind a reasonable doubt that Holstein, who was convicted in a bench trial, was guilty on all nine charges, according to Courthouse News Service.
The case dates back to September 2005, when Holstein acknowledged professional misconduct and agreed to an 18-month suspension of his law license but continued to accept new clients, the appeals court said.
But Holstein rarely saw the clients, leaving his paralegal, Lisa Vega, to help them fill out forms and accept their fees. Holstein also failed to appear at creditors meetings. And he instructed Vega to block out his name on bankruptcy petitions, making it seem as though his clients had no attorney.
Holstein claimed that Vega had perpetrated the scheme on her own, either as a way of keeping her job or to retaliate against him over a failed romance. But the appeals court wasn’t buying it.
“With no evidence in the record to cast doubt on the district court’s findings, Holstein’s appeal boils down to challenging the judge determinations as to the credibility of the witnesses,” Judge William J. Bauer wrote for the three-judge panel. “Such a tactic is ‘doomed at the outset.’ “
