Former law firm managing partner is indicted for alleged $20M embezzlement
The former managing partner of Morris Hardwick Schneider is accused in a federal indictment of embezzling more than $20 million from the law firm and its affiliated title agency.
The Feb. 9 indictment accusing Nathan Hardwick IV was unsealed on Monday, according to the Daily Report (sub. req.), the Atlanta Journal Constitution, Housing Wire and the Atlanta Business Chronicle. The indictment also accuses the law firm’s former chief financial offer, Asha Maurya, of embezzling $900,000 from the law firm to pay off her personal credit card bills and home mortgages.
Hardwick and Maurya were charged with conspiracy, wire fraud and related crimes, according to a Justice Department press release.
Hardwick began experiencing financial problems in the late 2000s after a decline in the residential real estate market, according to the press release. Adding to his financial crunch, a July 2008 divorce decree required Hardwick to pay more than $550,000 a year in alimony and other payments for five years.
“Hardwick’s legitimate income could not keep pace with his lavish lifestyle,” the press release says. He traveled on private jets, owned multi-million dollar homes, purchased high-end retail goods and services, gambled at casinos, and made payments to bookies and girlfriends, the press release says.
In 2011 Hardwick began directing Maurya to make payments to him from the law firm so he could “maintain the illusion of wealth” and “continue to live beyond his means,” the press release says. Most of the money came from the law firm’s escrow accounts, according to the Justice Department.
Hardwick owned 55.55 percent of Morris Hardwick Schneider, which handled residential real estate closings. The firm employed about 80 lawyers and 800 nonlaywers in 16 states. Hardwick worked out of the firm’s Atlanta office. The firm filed for Chapter 11 bankruptcy in July.
Morris Hardwick Schneider sold its operations to Butler & Hosch, which also closed last year, according to the Housing Wire story.
See also:
ABAJournal.com: “Founder of collapsed law firm to give up license”
