White Collar Crime

Prosecutors Claim Federal Judge Bias in Lawyer’s Racketeering Case, Ask 3rd Circuit for New Judge

Prosecutors are seeking the recusal of the federal judge assigned to hear a criminal racketeering case against a prominent New Jersey defense attorney, contending that U.S. District Judge William Martini is biased against the government. Among other issues, they have contended that Martini erred by severing witness murder conspiracy charges…

Jan 25, 2012 8:37 PM CST

Bilked of $285K in Web Scam, Law Firm Faces Fla. Bar Probe re Its Related Financial Practices

Losing $285,000 in a scam by a virtual client has proven to be doubly painful for a Florida law firm. In addition to losing the money, which federal prosecutors are trying to regain through a bank forfeiture action, the KEL Law Firm is also facing a Florida Bar inquiry about…

Jan 25, 2012 2:57 PM CST

Lawyer Takes Plea in $112K Embezzlement Case

In a move that came as a relief to her former clients, a California lawyer today pleaded guilty to embezzling $112,000 from a trust account. Previously, attorney Patricia Gregory has said she did nothing wrong, withdrawing money to which she was entitled for legal fees and providing even more legal…

Jan 25, 2012 12:30 AM CST

Stanford Lawyers to Blame Feds, Economy for Investors’ $7B Loss at Fraud Trial Beginning in Texas

Federal prosecutors say onetime Texas billionaire R. Allen Stanford made false representations to investors to persuade them to purchase so-called certificates of deposit at an offshore bank he controlled. However, his defense team is expected to point the finger at the feds and the global economic downturn at the federal…

Jan 23, 2012 7:18 PM CST

Ex-Crowell Lawyer Held Without Bail in $2.5M Client Theft is Investigated re $21M More, Gov’t Says

A former Crowell & Moring lawyer accused of embezzling $2.5 million in escrowed client funds was arraigned on Friday in criminal court in Manhattan and ordered held without bail as a flight risk. Douglas Arntsen, 34, faces charges of grand larceny and scheming to defraud. He is also under investigation,…

Jan 23, 2012 5:52 PM CST

Ex-Lawyer Gets 15 Years for Misleading Sellers in Mortgage-Rescue Scheme

A disbarred Illinois lawyer has been sentenced to a 15-year federal prison term for participating in a fraudulent mortgage-rescue scheme. The U..S. Attorney’s office says Norton Helton, 50, received above-market fees for serving as a closing attorney at over 100 transactions, in which sellers who had falsely been assured that…

Jan 20, 2012 9:22 PM CST

Disbarred NY Lawyer, 82, Gets 45 Days for Hiding $26M in Swiss Bank

A disbarred New York lawyer was sentenced today to only 45 days for tax evasion by a federal judge in Manhattan, apparently because of his advanced age and failing health. Kenneth Heller, 82, had faced a maximum 15 years in prison, and sentencing guidelines called for 30 to 37 months.…

Jan 20, 2012 7:09 PM CST

Lawyer Arrested, Charged with Stealing $600K from Guardianship and Family Trust Accounts

An Indiana attorney who is also an accountant was arrested today and has been criminally charged for allegedly stealing nearly $600,000 from two client accounts. Stacy H. Sheedy is accused of stealing $170,000 in less than a year from a guardianship account for an elderly woman with Alzheimer’s disease, after…

Jan 19, 2012 6:34 PM CST

Federal Jury Says TD Bank Must Pay $67M to Investors Swindled by Ex-Attorney Scott Rothstein

After four hours of deliberation, a federal jury in Miami yesterday decided that a South Florida bank must pay $67 million to a group of 27 investors swindled by then-attorney Scott Rothstein. The award, which includes $35 million in punitive damages, is based on a determination that officials of TD…

Jan 19, 2012 6:05 PM CST

Ex-Prez of Ohio State Bar Inflated Law Firm Biz Expenses, Gets 1 Year in Federal Tax Case

A former president of the Ohio State Bar Association has been sentenced to a year and a day in federal prison after pleading guilty to falsifying federal tax returns. Under the sentence he received from a federal judge in Youngstown, Leslie W. “Les” Jacobs, 67, must also serve just under…

Jan 18, 2012 9:02 PM CST

Former Montana Municipal Judge Takes Plea in Federal Bribery Case

A former municipal judge for Butte and Silverbow County, Montana, has taken a plea in a bribery case. Steven J. Kambich, 53, who has been on the bench there since 2004, pleaded guilty today in federal court in Missoula to a single county of bribery. It concerned $13,000 in payments…

Jan 13, 2012 11:14 PM CST

Federal Judge Says Allen Stanford Lawyers Can’t Quit, Must Defend Him in Upcoming $7B Fraud Trial

A federal judge in Houston has nixed an effort by lawyers for R. Allen Stanford to withdraw from his defense less than two weeks before he is scheduled to stand trial in a $7 billion fraud case. Although they claim not to have had enough time and resources to prepare…

Jan 13, 2012 10:46 PM CST

Federal Judge Delays Racketeering Trial of NJ Lawyer, Says Prosecutors Mischaracterized Court

A federal judge in Newark today postponed a racketeering trial scheduled to start next week for a high-profile New Jersey defense attorney accused of orchestrating a variety of criminal enterprises, including a cocaine operation, in connection with his law practice. Prompting the decision by U.S. District Judge William J. Martini…

Jan 13, 2012 1:19 AM CST

Wash. Lawyer’s License Lifted After Roommate Used Attorney Phone Privileges to Talk with Inmates

A Washington state defense lawyer has lost her law license over phone calls between a housemate and two inmates, using the attorney’s free legal phone privileges. Kimberly Grijalva, who was previously convicted of theft concerning the phone calls, also allegedly let an inmate use her cellphone during a jail visit,…

Jan 12, 2012 10:24 PM CST

Former Court Clerk Gets 10 Years for Stealing $500K from Ticket and Fine Payments

A former court clerk was sentenced by an Iowa judge to a 10-year prison term after entering a no-contest plea to four counts of first-degree theft in the middle of her October trial. The prosecution had sought a 20-year term for Tina Marlene Zieser, 46, who must also pay restitution…

Jan 12, 2012 9:20 PM CST