Biglaw

Feds Seek Top-End Prison Sentence For Biglaw Partner

Is this really necessary?

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The collapse of LeClairRyan prompted its share of recriminations, but while finger-pointing between the former partners and UnitedLex continues, one bankruptcy partner found himself caught out in a multi-year embezzlement scheme.

The firm’s former Chief Legal Officer, Bruce H. Matson, admitted to misappropriating around $4 million from bankruptcy trust funds that he oversaw, improperly distributing some of those funds to himself and another attorney. Most of the total misappropriation came in the from wind-down funds that he sent around in 2019 that weren’t supposed to be distributed at that time. After the scheme got noticed, prosecutors say Matson tried to conceal his wrongdoing by misleading the Bankruptcy Court.

From the Richmond Times-Dispatch:

“Over the course of a four-year period, the defendant designed and executed a multi-step and multifaceted scheme to defraud the LFG Liquidation Trust of as much money as possible … diverting the bulk of those siphoned-off or embezzled funds into bank accounts that he controlled; transferring some to his associates; and directing the remainder to his law firm to settle a personal debt.

Matson’s attorneys are asking for a 37-month sentence — at the low-end of the Guidelines — arguing that Matson has been cooperating in achieving complete restitution. The government, on the other hand, is looking at a 46-month sentence, underscoring the gravity of Matson’s betrayal of his fiduciary position.

As numbers on a page, nine months may seem like an insignificant difference, but in the life of a guy who will be 67 when the distinction comes into play it will matter quite a bit. No one wants a system that allows affluent criminals to use their resources to plead “no harm, no foul” by paying everyone back — that just encourages bad behavior. Indeed, rich people deserve prison more than the average defendant because fines have limited impact.

But the answer doesn’t have to be the top-end of a prison range. Three years is a long time to be locked up for anyone.

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Government seeking tough prison term for disbarred lawyer who misappropriated $4 million; defense asks for leniency [Richmond Times-Dispatch]

Earlier: Disbarred Former Biglaw General Counsel Pleads Guilty

HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.

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