Embezzlement

If you’re going to steal millions from clients, at least make a good story out of it. Like blowing hefty sums on luxurious private air travel and wiring millions to casinos to cover gambling debts. Make it a rock star story right up until the very end.

Of course, it’s hard to imagine a lawyer successfully stealing millions. There are just too many checks in place to let it get that far. It felt like the only thing anyone needed to know to pass professional responsibility was to respect escrow accounts. You just make sure all the money you’re watching for your customers, consumers, lenders and employees is always accounted for. There’s inevitably more than one person handling the bank statements. It’s just hard to lose millions.

Nonetheless, one law firm with offices around the country thinks it’s discovered more than a minor problem in its accounts. In fact, it just filed a lawsuit against its former managing partner, alleging that he siphoned off a cool $30 million from client escrow accounts to live like a proverbial rock star….

double red triangle arrows Continue reading “Managing Partner Accused Of Embezzling $30 Million From Clients”

* Nothing demands a SWAT team like a 90-year-old woman. [Lowering the Bar]

* Not so much legal, but here’s Princeton Review’s ranking of the best and worst colleges. If you’re looking for hard liquor, head to Iowa City. [TaxProf Blog]

* Dewey know what Al Togut’s going to say about law firm bankruptcies. Yeah, I know, but we’re just going to keep riding this pun. [Forbes]

* Corruption in New Orleans? Hold on, I need a second to let this sink in. [The Times-Picayune]

* Be sure to come by Betterment on Wednesday to hear from a panel of general counsel about the transition to in-house work for a startup company. [Above the Law]

* The CFPB is cracking down on debt-collecting law firms. So if you’re a bottom-feeder, the government is coming for you. [Gawker]

A happy paralegal.

* The latest Vault 100 rankings are out, and it’s time to find out which Biglaw firm is the most prestigious in all the land. Is it Wachtell? Is it Cravath? We’ll have the answer for you, and much more analysis, later today. [Vault]

* A former office manager at Vedder Price has been accused in a $7M embezzlement scandal. She allegedly used the money to buy “lavish homes, numerous vacations” — it’s as if she were trying to live like a partner. [ABA Journal]

* Since the Redskins’ trademark was canceled by the Patent and Trademark Office, sports fans are wondering whose offensive team name is next. The Cleveland Indians might get scalped. [WSJ Law Blog]

* According to ALM Legal Intelligence, paralegal pay is on the rise, and it’s almost $80/hr in top roles. Why should new attorneys care about this? Because they’ll probably have to work as paralegals. [ALM]

* Double the deanships, double the fun: Penn State Law’s campuses have been approved by the ABA to become separately accredited locations. We’ll take bets on which one closes first. [StateCollege.com]

[T]he defendant’s practice basically consisted of him showing up at the office every now and again to do a closing and then leaving to go drinking or sleep with his paralegal. You can’t do $33 million in business in real estate closings if that’s what your practice consists of.

– Rhode Island Assistant Attorney General Ron Gendron, commenting on former state Sen. Patrick Timothy McDonald’s conviction for conspiring with his paralegal and sometimes mistress, Kimberly Porter, to embezzle more than $160,000 from his real estate clients.

We haven’t seen a good Student Bar Association scandal in a while, but that’s all about to change. In case you’re not aware, the law students who are elected to serve on their school’s SBA are tasked with organizing fun events that will make their peers happy, and those events usually cost a lot of money. What can I say, alcohol and vomit clean-up fees are expensive.

So understandably, when that beer money starts to get mysteriously low — in this case, to the tune of tens of thousands of dollars inexplicably missing — people start to panic. At what point do you realize the girl responsible for managing your organization’s finances has embezzled more than $30,000?

Probably when she admits to you that she spent the cash to fuel her drug and alcohol addiction…

double red triangle arrows Continue reading “Law Student Embezzles Thousands of Dollars While Drunk, High”

Steven Nataupsky’s résumé?

* Conflict of interest? What conflict of interest? We didn’t have a conflict of interest! Covington & Burling is appealing its disqualification from representing Minnesota in a suit against former client 3M. [Capital Business / Washington Post]

* “If I sent my résumé through the firm, I wouldn’t get looked at.” Knobbe Martens Olson & Bear is hiring so many awesome associates that the firm’s managing partner doesn’t even know if he’d stand a chance. [National Law Journal]

* Doug Arntsen, the ex-Crowell associate who stole $10.7M in client funds and spent it at strip clubs, was sentenced to four-to-12 years in prison. [New York Law Journal]

* Music to Benula Bensam’s ears? In a case of dueling sentencing memos, prosecutors want Rajat Gupta to spend 10 years in prison, but his own lawyers want him to be sent to Rwanda. [DealBook / New York Times]

* Donald Polden, the dean of Santa Clara Law, will be stepping down at the end of this academic year. Hope they’ll be able to find a new dean, because every “influential” school needs one. [San Jose Mercury News]

Douglas R. Arntsen

We regret the harm caused by Douglas Arntsen to our clients and our firm and are pleased Mr. Arntsen has acknowledged his crimes with a guilty plea.

Crowell & Moring’s managing partner, Ellen Dwyer, commenting on ex-associate Douglas Arntsen’s guilty plea after he stole more than $10 million from the firm’s clients. Arntsen reportedly spent the money on fancy restaurants, sporting events, strip clubs, and purchasing various businesses, including a laundromat and cookie and potato chip distributorships.

Not so fast, Canellas…

* Yeah, about that huge bonus we were going to pay our ex-finance director — we realized how silly that was, so we’re not going to do that. Aww, don’t worry, Dewey & LeBoeuf, you’ll have plenty of other chances to look absurd. [Am Law Daily]

* Not only is Samsung suing Apple for patent infringement, but the company is also trying to get a do over by getting Judge Lucy Koh to throw out the original billion-dollar verdict over jury foreman Velvin Hogan’s alleged misconduct. [Bloomberg]

* “Small deals are easier to swallow, easier to integrate.” Regional firms like Carlton Fields and Adams and Reese are gobbling up smaller firms in what seems to be the latest trend in law firm merger mania activity. [Thomson Reuters News & Insight]

* Douglas Arntsen, the former Crowell & Moring associate who had to be extradited from Hong Kong after embezzling $10.7M from clients, pleaded guilty in exchange for a lesser sentence. [New York Law Journal]

* It’s tough to come up with appropriate whistleblower jokes given the background here. We’ll play it straight: Mike McQueary filed a defamation suit against Penn State, and he’s seeking $4M in damages. [ABC News]

* Jose Godinez-Samperio, an undocumented immigrant, is fighting for the ability to practice law in Florida, but the members of the state Supreme Court are literally trying to make it into a “federal case.” [Washington Post]

QE's Kathleen Sullivan as Lawyer Barbie

* Dewey know the firms that have been tapped to represent the groups that this failed firm owes money to? Yes, we do! Brown Rudnick for the unsecured creditors’ committee, and Kasowitz Benson for the former D&L partners. [Am Law Daily (sub. req.)]

* The Ninth Circuit is supposed to be issuing an order today regarding an en banc reconsideration request on the Prop 8 case. They really ought to slap a big fat denial on that motherf’er and call it a day so we get some SCOTUS action. [Poliglot / Metro Weekly]

* Matthew Kluger, most recently of Wilson Sonsini, has been sentenced to 12 years in prison, which is the longest sentence that anyone’s ever received in an insider trading case. Uh yeah, he’ll be appealing. [Wall Street Journal (sub. req.)]

* Hughes Hubbard & Reed has billed more than $17M in the first four months of its work on MF Global’s unwinding. Will the firm will be handing out spring “special” bonuses like they did last year? [Reuters]

* Mattel is appealing MGA’s $310M copyright award, claiming that the judgment was based on “erroneous billing invoices.” Don’t you call my billable hours into question, Kathleen Sullivan. [National Law Journal]

* Jerry Sandusky’s accusers will be named in court thanks to this judge’s ruling. But don’t worry — there’s no tweeting, texting, or emailing allowed in his courtroom. Like that’ll make a difference. [Legal Intelligencer]

* Trust me, I’m a lawyer: a now-disbarred Colorado attorney managed to scam a convicted con artist out of more than $1 million. Now that’s some pretty sweet karmic intervention for you. [Missouri Lawyers Media]

* A bus driver is suing a hospital because he claims that instead of treating his painful erection, the staff watched a baseball game on TV. Whatever, that was a really great Yankees game. [Associated Press]

Yeardley Love

* Dewey get to see a member of this firm’s chairman’s office strut for a perp walk in the near future? After all, partners reportedly say that it’s thanks to him that D&L may close up shop “as early as next week.” [Law360 (sub. req.)]

* De-equitize this: Oh, how Biglaw firms in America wish that they could return to merry old England, where mandatory retirement policies for old fart partners are the norm, and the courts agree. [Legal Week]

* “We’re about to beat a dead horse here.” Even the judge presiding over the John Edwards trial got pissed when the defense repeatedly asked variations of the same question on cross-examination. [MSNBC]

* Ain’t no shame in his game (well, actually, there is). Judge Wade McCree’s lawyer says he’s sure the judge is sorry for his sext messaging. Yeah, sorry he got caught. [Detroit Free Press]

* Is this the first test of the “ministerial exception” in the Perich case? A teacher at a Catholic school was fired for getting in vitro fertilization treatments, and now she’s suing. [CNN]

* Insert your own UVA joke here, bro. Yeardley Love’s family has filed a $30M wrongful death suit against former college lacrosse player, George Huguely V. [Washington Examiner]

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