Scamming Clients Leads To Disbarment

An attorney convicted on federal mail fraud charges that involved deception of clients has been disbarred by the South Carolina Supreme Court.

Respondent was charged with devising a scheme whereby he obtained money and property from his clients by false and fraudulent pretenses. The scheme with regard to some of respondent’s clients was as follows: respondent would contact clients, former clients, or family members of former clients who had readily accessible money and inform them that the clients were in imminent danger of being arrested and/or of losing their money; he would instruct the clients or clients’ family members to transfer large sums of money to him to be deposited in his trust account for safekeeping or to ensure that the investigation would be closed; he encouraged the clients or clients’ family members to locate as much money as possible, including liquidating retirement accounts and asking family members for money; respondent would accept the funds from his clients or his clients’ family members and convert those funds to pay for expenses and obligations relating to his law firm, to himself personally, and to other clients. There were never any civil actions or criminal investigations regarding the claims respondent made to his clients.

There are a number of specific instances of client-related misconduct set forth in the court’s decision. Included also were findings that he frequently sought loans from clients.

Respondent self-reported that, from 1994 until 2002, he borrowed significant sums of monies from several clients. He admits that some of the loans were not transmitted in writing to the clients and/or the clients did not consent in writing to essential terms of the loan and respondent’s role in the transaction.

The disbarment is effective as of the date of his interim suspension.

The Palmetto State reported on the conviction. WLTX 19 had the story of the sentencing. (Mike Frisch)