Million Dollar Man

The California Bar Journal reports a case that seems eminently disbarment-worthy

SCOTT STONE MEHLER [#190014], 43, of Long Beach, was disbarred March 25, 2015 and ordered to comply with rule 9.20 of the California Rules of Court and pay restitution.

Mehler stipulated that within a five-month period in 2013 he misappropriated $1.4 million of his client’s money, spending it on personal expenses. In April of that year, Mehler had been hired to serve as local counsel for to Amerector Inc., the American holding company of a Canadian company known as Canerector. Amerector was purchasing a California company and wire transferred $1.4 million into Mehler’s trust account for the sale.

Although he was tasked with acting as the escrow agent, Mehler transferred $1,856,223.89, which included the $1.4 million, from his trust account into his firm’s money market account. For several months after the close of escrow, Mehler made repeated excuses and engaged in trickery, including falsifying records, to try to hide from the parties involved that he had spent the money.

Though he ended up wiring some of the money, he told the attorney representing the company that was sold that he could not pay the remaining $916,437.84, saying he lost it on “bad investments.” He then emailed the attorney with a proposed payment plan saying he wanted it kept confidential and asked that no legal action be taken against him. He attempted to issue three checks to cover the loss, which were returned for insufficient funds on Jan. 17, 2014. The sellers and Amerector then sued Mehler, and he made partial restitution of $268,642.47.

(Mike Frisch)