Image: Photodisc Green/ Getty Image
Bribery. Money laundering. Investment scams. Lawyers don't just represent folks accused of such crimes. They often are the accused. Here we've collected stories of lawyers accused of defrauding clients; judges charged with abusing their power; and individuals who've just plain gone off the rails with behavior so bizarre we can only wonder: "What were they thinking?" While some have been cleared of the charges, others have been reprimanded, sanctioned, or sent to jail. Their tales are funny, sad, weird -- and not to be missed.
N.J. Judge Suspended for Touching, Flirting With Court Employees
New Jersey Law Journal
A New Jersey Superior Court judge who fondled judiciary employees during a holiday party and later blamed drunkenness for his amnesia regarding the incident has been suspended without pay for four months and ordered to undergo alcohol counseling.
Conn. Lawyers Named in $10 Million Mortgage Fraud
Connecticut Law Tribune (paid-access)
Two Connecticut lawyers have pleaded guilty to bilking banks and lending companies in a mortgage scheme that prosecutors say falsely exaggerated the value of properties and their potential to generate rental income. Due to be sentenced in October, both men face up to 30 years in prison and as much as $20 million in fines.
Ninth Circuit Rips Lawyer for Stonewalling on Discovery
The Recorder (paid-access)
Affirming a $5 million default judgment in a case against an airline accused of cheating pilots out of hazard pay for flying through war zones, the Ninth Circuit on Wednesday took the additional step of ordering a jury trial on punitive damages and suggesting the disbarment of the airline's trial counsel.
Ga. Judicial Candidate Indicted on Theft Charges
Daily Report
A lawyer running to unseat a Georgia judge has been indicted on six felony counts for allegedly diverting more than $400,000 from a $1.3 million investment deal for personal use and that of his unsuccessful 2010 judicial campaign.
Calif. Judge Admonished for Abuse of Contempt Power
The Recorder (paid-access)
A California judge has received a public admonishment for how he treated an attorney who made a snappy comment in response to his ordering her to "spend every waking moment" working on a case. The state Commission on Judicial Performance said similar past conduct by the judge was a "significant factor" in Wednesday's decision.
Suspension, $10K Restitution Allow Lawyer to Avoid Felony Charges for Overbilling
Daily Report
A lawyer who admits overbilling a Georgia county for representing indigent clients will see 35 felony counts dropped in exchange for paying $10,605 in restitution, agreeing never to represent indigent defendants again and accepting at least a six-month suspension of his bar license.
Judge Rejects Illness, Stress as Excuses in Sentencing Ex-Bankruptcy Trustee for Theft
The Connecticut Law Tribune
A former bankruptcy trustee has been sentenced to 18 months imprisonment and $15,000 in fines for admittedly stealing $11,100 from an open bankruptcy case. Michael Daly claimed great stress and cancer treatment made him do things he can't explain, but there was evidence that he submitted $80,000 in fabricated time sheets in another bankruptcy.
Judge Faulted for Presence at For-Profit Poker Games
New York Law Journal (paid-access)
A New York judge has been censured by the state Commission on Judicial Conduct for participating in and attending for-profit poker games held at a fraternal order of which he was a member. The commission wrote that the judge's "presence at and participation in the games gave his judicial imprimatur to this unlawful activity."
Calif. Judge Charged With Elder Theft
The Recorder
A California judge finds himself on the other side of the bench after being charged with elder theft and 11 counts of perjury. Prosecutors say Judge Paul Seeman stole hundreds of thousands of dollars from an elderly neighbor while acting as her attorney and fiduciary -- money he plowed into real estate and other investments.
Judge Punished for Trying to Fix Wife's Traffic Ticket
The Recorder
California's Commission on Judicial Performance has censured a judge for pressuring a court commissioner to fix his wife's traffic ticket. The judge "engaged in serious judicial misconduct which severely damages the reputation of the judiciary," the commission wrote.
Former Associate Who Kept Sex Slave Is Suspended
New York Law Journal
A former Debevoise & Plimpton associate who is in prison for forcing a Russian teen to be his sex slave has been suspended from practice by a New York appellate court, pending disciplinary proceedings.
Slander Suit Says Lawyer's Spittle Spurred Slap
The Am Law Daily
A contentious deposition during which an opposing counsel slapped a Paul Hastings partner in the face has now resulted in the firm being slapped with a lawsuit. Paul Hastings has moved to dismiss the suit, which accuses the firm and a partner of slander and assault.
Former GC to Pay $100K Fine Under Deferred Prosecution Agreement
Corporate Counsel
A federal judge has approved a deal allowing a former assistant general counsel to avoid a new criminal trial over charges that he helped create a sham reinsurance transaction to help American International Group.
Former Tax Attorney's Spending Spree Will Cost Him -- and Taxpayers
The Recorder
A former tax attorney and hedge fund manager is supposed to be paying $14 million to investors as part of an SEC settlement. Instead, he's spent lavishly on basketball tickets, chartered flights and a Pottery Barn shopping spree, court records say. A federal judge has held him in civil contempt, and prosecutors are now renewing their criminal case.
Law School Wins Round With Former Professor Fired Over Gun Fears
The National Law Journal
A former tenured professor is fighting to get his job back after administrators fired him amid concerns that he might bring a gun to campus. A tussle has persisted for months over discovery, with the most recent decision coming down in favor of the school.
Judge Who Helped Girlfriend in Legal Case Denies Wrongdoing
New Jersey Law Journal (paid-access)
A New Jersey judge who faces ethics charges for allegedly intervening in legal matters involving his future wife and her children denies that he did anything wrong, saying that at the time of the events in 2008, he was acting not as a lawyer but solely as a "scrivener and copy editor."
Longtime Defense Lawyer Found Guilty in Fake Evidence Scheme
The BLT: The Blog of Legal Times
A federal judge has found a longtime criminal defense lawyer guilty for his lead role in a scheme to fabricate evidence. The ruling marked a win for prosecutors in a closely watched case that raised concern in the defense bar.
Attorney, Client Sanctioned Over Frivolous Claims
New York Law Journal (paid access)
An attorney and his client who repeatedly sued a health care company have been sanctioned for filing frivolous claims, including a seven-word complaint and a notice of removal, a tool normally reserved for defendants.
Solo Attorney Accused of Stealing Settlement Funds, Forging Check
New York Law Journal (paid-access)
A Manhattan solo attorney faces a maximum sentence of 15 years for allegedly stealing more than $100,000 from client settlement funds and forging a check to obtain more than $150,000 from a bank.
Law Firm to Shell Out $61 Million to Exit Ponzi Class Action
The Litigation Daily (paid-access)
Greenberg Traurig and Quarles & Brady have agreed to fork over a combined $87.5 million to resolve class action claims that they aided and abetted a $900 million Ponzi scheme carried out by Greenberg client Mortgages Ltd. and Quarles client Radical Bunny.
Lawyer Terminated Amid Fallout From Dropbox Suit
The Legal Intelligencer
Stevens & Lee has "terminated its relationship" with a lawyer who was sued by the Elliott Greenleaf firm when he changed firms. Elliott Greenleaf alleged that the lawyer, along with former clients and Stevens & Lee, had continued to access Elliott Greenleaf client files through Dropbox software he allegedly installed before he left the firm.
$104 Million Suit Charges Willkie With Legal Malpractice
New York Law Journal
Willkie Farr & Gallagher has vowed to defend itself in a legal malpractice action brought by a real estate investor who claims the firm inappropriately advised him to put a company into bankruptcy. The suit also accuses Willkie of switching sides to represent a bank.
General Counsel's Emails Figure in Unprecedented Sanctions Order
The Litigation Daily (Paid-access)
If you want more proof of how your emails can come back to bite you, a certain general counsel can fill you in. His emails were a key element in a judge's sanctioning of a company involved in a trade secrets complaint gone wrong.
Imprisoned Attorney Describes Embezzlement Scheme at Cruise Line
Daily Business Review (paid-access)
In one of his more bizarre depositions, Ponzi schemer Scott Rothstein recently claimed he teamed with a former law partner and the ex-CEO of a cruise line to embezzle thousands of dollars from the company, partly to pay the CEO's mistresses.
Calif. Judge Charged With Swindling Elderly Neighbor
The Recorder (paid-access)
An Alameda County Superior Court judge described by another judge as "one of the good guys" stands accused of swindling an elderly neighbor whom he had befriended out of more than $200,000.
Federal Judge Bounced From Two Cases in Same Day
New Jersey Law Journal
The Third Circuit has bounced U.S. District Judge William Martini from a murder-conspiracy against a former federal prosecutor over impartiality issues. On the same day, a different panel found that Martini's actions and remarks in an unrelated case were grounds for removal.
Lawyer Sanctioned Over History of Inaccurate Briefs
New York Law Journal (paid-access)
A lawyer has been hit with a $1,000 sanction for pressing a claim of intentional infliction of emotional distress in an employment case. Noting the attorney's use of such claims in similar cases, a federal judge said the attorney had a history of "filing briefs laden with inaccuracies; ignoring controlling precedent; and disregarding the court's authority."
Former Partner Bunsow Sues Dewey Leaders for Misrepresenting Firm's Finances
The Am Law Daily
In a bombshell lawsuit, former Dewey & LeBoeuf partner Henry Bunsow is accusing multiple Dewey leaders -- including longtime Chairman Steven Davis -- of committing fraud by lying about the true state of the now-bankrupt firm's finances.
Imposter Attorney Catches a Break
The National Law Journal
The Tenth Circuit has upheld the conviction of a man who never held a law license but hoodwinked a "slew" of federal courts into admitting him to practice. But the court threw out his nine-year prison sentence and the $152,000 in restitution he was ordered to pay.
N.Y. Panel Suspends Lawyer Accused of Molesting Opposing Counsel
New York Law Journal
An attorney has been suspended for two years after having been found to have made sexually suggestive comments to an opposing attorney, exposing himself to her, and kissing and fondling her in a state trial judge's chambers.
Prominent Bankruptcy Lawyer Sued Over Fees Paid by Ponzi Schemer
The Am Law Daily
The receiver overseeing the wind-down of convicted Ponzi schemer Tom Petters' business interests has filed a federal suit against a former Big Law partner over nearly $804,000 in fees he received for providing legal counsel to Petters.
Fugitive In-House Lawyer Accused of Profiting Off Fake Law Firm
Corporate Counsel
Giving new meaning to the phrase "alternative fee arrangements," a former in-house lawyer is on the lam after allegedly funneling more than $9 million in company funds to a fictitious law firm that he and his wife are accused of creating.
Defense Lawyer Found Guilty on Seven Money Laundering Counts
The National Law Journal
A prominent criminal defense attorney faces up to 20 years in prison, three years of supervised release and up to $500,000 in fines over money laundering charges.
Prosecutor Arrested on Charges of Taking Bribe -- in Court
New Jersey Law Journal
A municipal prosecutor was arrested in a courtroom by investigators who watched as he allegedly solicited and received a $500 bribe. He's also suspected of taking money in other cases for agreeing to lower fines, reduce charges or drop the citations altogether.
Judge Reprimanded Over Smoke Breaks, Religious Commentary
The National Law Journal
The Florida Supreme Court has reprimanded a trial judge for taking long smoke breaks and invoking Jesus Christ as part of his decision-making process. The judge must write a letter of apology and keep a weekly log documenting his timeliness.
Judge in Hot Water After Helping Out Girlfriend
New Jersey Law Journal (paid-access)
Proving there's a time to help someone and a time to steer clear, a New Jersey judge faces ethics charges for intervening on behalf of his then-girlfriend on some issues involving her children and their father. The case brings to mind the 2007 censure of a different New Jersey judge, also over some family assistance.
Former Am Law 100 Associate Gets 12-Year Sentence in Insider Trading Scheme
The Am Law Daily
A former attorney drew a 12-year prison sentence for his role in a massive insider trading scheme that lasted nearly two decades and was made possible in large part by his position as an associate with a series of Am Law 100 firms. A federal judge said the crime warranted a stiff penalty because "it allows greedy, arrogant people to make money off others."
New Trials Ordered After Juror Fails to Tell Judge She's a Lawyer
New York Law Journal
A juror's cover-up of her identity as a suspended lawyer has led a federal judge to order new trials for three defendants in the Jenkens & Gilchrist tax shelter case. The juror's real identity was only exposed post-trial, after she wrote the lead prosecutor, saying "KUDOS to your team," praising the government's handling of the case and commenting on deliberations.
'Seth in the City': Fundraising Tactics Bring Unwanted Attention to DA's Campaign
The Legal Intelligencer
Philadelphia prosecutors were likely taken aback when they opened their work emails to find an invitation to a campaign fundraiser for their boss. And let's not forget the event flyer's photo of a woman wearing an off-the-shoulder evening gown with a thigh-high slit.
Paralegal Says She Was Fired in Flap Over Fraudulent Invoice
Texas Lawyer (paid-access)
A paralegal has filed a wrongful termination suit against a Texas law firm, alleging she was fired for refusing to "compile, falsify, submit and send out a clearly fraudulent invoice," and yelled at by a firm partner for "saying you fucking can't do it."
Finger-Pointing, Lack of Remorse Factor Into Lawyer's Disbarment
New York Law Journal
A New York appellate panel has disbarred an insurance lawyer for repeatedly submitting motions in litigation that differed substantially from those served on the opposing party. The attorney blamed the discrepancies on clerical errors, but the court wrote that the "sheer volume of documents at issue suggests otherwise."
Attorneys' Pricey Wine Comes With Sanctions Surcharge
The National Law Journal
A federal judge has notified two law firm partners that he intends to sanction them by formal admonition or worse for claiming unreasonable expenses related to a securities class action, including first-class airfare and a lavish dinner that included two $70 bottles of wine. Next time, it's the cattle car and sparkling water. Wait, better make that tap water.
Women Not Laughing Over General Counsel's Joke
Corporate Counsel
Safeway's general counsel and its CEO have both sent formal letters of apology to Secretary of State Hillary Clinton and former Speaker of the House Nancy Pelosi after a joke the GC made at an annual meeting got him branded a sexist. The apologies may not have been entirely voluntary.
District Attorney Censured for Criticism of Judge in Pending Case
New York Law Journal (paid-access)
An appeal panel has censured a county DA for his "reckless and misleading" criticism of a judge who had removed him from a case. In an email to reporters, the DA called the judge's actions "a get-out-of-jail-free card for every criminal defendant in New York State."
Two Prosecutors in Stevens Case Cited for Professional Misconduct
The BLT: The Blog of Legal Times
A Justice Department probe of the botched Ted Stevens prosecution has concluded that two prosecutors committed reckless professional misconduct and should be sanctioned through forced time off without pay. The department did not find that either Assistant U.S. Attorney acted intentionally to violate ethics rules.
Judge Retires Following Launch of Ethics Probe
The Daily Report
Sometimes timing is everything. Take the case of a judge who announced his retirement after a judicial commission opened an ethics inquiry based on complaints that he had "allowed the prestige of his office to advance his private interests."
Former Attorneys Get Prison Time for Investment Scams
The National Law Journal
Two former attorneys have been sentenced to a combined 18 years in federal prison for their involvement in separate investment scams that bilked victims out of nearly $35 million. Some of the ill-gotten gains were used to buy a Ferrari, a Porsche, a Las Vegas home and a stake in a Beverly Hills restaurant.
Corporate Lawyer Pleads Guilty in Escrow Theft and Stock Scam
New York Law Journal
A former law firm partner pleaded guilty to money laundering and conspiracy to commit securities fraud as jury selection was about to begin in a trial of one of two separate indictments against him.
Pa. Supreme Court Suspends Justice in Wake of Criminal Charges
The Legal Intelligencer
Pennsylvania Supreme Court Justice Joan Orie Melvin was suspended by her fellow justices immediately after being charged with nine criminal counts, alleging she used legislative and judicial staff to perform campaign work. Similarly, her sisters, state Senator Jane Orie and staffer Janine Orie, were charged with using Jane Orie's Senate office to do campaign work.
Reader Comments