Crowell & Moring was sued Friday for $5.5 million in missing real estate escrow money that a client says was improperly diverted by former firm associate Douglas R. Arntsen (See Complaint).

Attorney Bruce H. Lederman, representing Regal Real Estate and related entities, sued Crowell & Moring ten days after reporting Mr. Arntsen to the Manhattan District Attorney’s Office. According to published accounts, Mr. Arnsten was in custody in Hong Kong after fleeing to avoid arrest. The reports could not be confirmed.

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