Nonlawyer accused of running law offices and $1.6M in thefts faces bankruptcy and tax charges
A Texas man who reportedly not only served as a law firm runner but allegedly was allowed by San Antonio attorneys, in exchange for a monthly flat fee, to settle cases on clients’ behalf was federally indicted Tuesday and is being held without bail.
However, the claimed unauthorized practice of law is not the primary focus of the criminal case against Elpidio ‘Pete’ Gongora Jr. He is accused of stealing some $1.6 million in settlement funds from the clients he represented, the lawyers and others, and he is facing bankruptcy fraud and tax evasion charges over the manner in which he handled his personal finances, as well as mail fraud and identity theft charges, according to the Associated Press and the San Antonio Express-News. An earlier Express-News article provides further details.
Arrested in April at San Antonio International Airport, where he was reportedly about to board a one-way flight to Mexico, Gongora, 46, is accused of failing to disclose all of his assets in a 2013 bankruptcy filing and failing to declare all of his income to the Internal Revenue Service, which says he owes some $1.6 million in taxes.
In addition to purchasing expensive homes, he reportedly owned a Ferrari, a Lamborghini and an $85,000 boat at one point.
An FBI agent says in an affidavit that Gongora operated the San Antonio law offices of three attorneys between 2009 and 2014. During that time, the agent says, he stole from the firms’ operating and trust accounts, from clients and from their health-care providers. Two of the three lawyers have since given up their law licenses; one has no history of attorney discipline, the Express-News reports.
An FBI agent testified at a hearing last month that Gongora paid the lawyers $5,000 to $6,000 monthly, and in return he was allowed to generate his own clients and settle their cases without supervision.
