Attorney Admits Conversion And Dishonesty
An Illinois attorney has filed a motion for disbarment by consent admitting conversion of over $200,000 of entrusted funds.
From the stipulation
Between January 13, 2017 and February 20, 2017, Movant applied for loans on behalf of his clients Alivia Greenfield, Margaret Sala, and James Repp from a litigation funding company known as Plaintiff Support Services that provides pre-settlement and post-settlement loans to plaintiffs in personal injury lawsuit. Movant signed each client’s name to documents in their respective loan applications, including a credit and information release, an irrevocable letter of direction, an installment deferment agreement, and a promissory note, without their knowledge or consent. Movant also notarized Greenfield, Sala, and Repp’s purported signatures on those documents.
On February 7, 2017, Movant received Plaintiff Support Services’ loan check in the amount of $20,000 made payable solely to Alivia Greenfield, and Plaintiff Support Services’ loan check in the amount of $12,000 made payable solely to Margaret Sala. On February 21, 2017, Movant received Plaintiff Support Services’ check in the amount of $15,000 and made payable solely to James Repp. Movant endorsed Greenfield, Sala, and Repp’s names on the back of each respective check, without the clients’ knowledge or consent, and he deposited each check into his operating account. Movant then used the proceeds from each check he received from Plaintiff Support Services for his own business and personal purposes, and not directly for payment of costs associated with Greenfield, Sala, or Repp’s personal injury claims.
Although as of the date of this petition Plaintiff Support Services had not attempted to collect payment of the loans from Greenfield, Sala, or Repp, those clients remain responsible for repayment of the loans pursuant to the promissory notes Movant signed. As of June 20, 2019, the amount due to Plaintiff Support Services in relation to the loan Movant took out in Greenfield’s name, including interest, was $49,196.65, the amount due on the loan Movant in Sala’s name, including interest, was $29,033.00, and the amount due in relation to the loan Movant took out in Repp’s name, including interest, was $35,935.87.
(Mike Frisch)