From Deepwater To Hot Water

The Louisiana Attorney Disciplinary Board recommends that an attorney be permanently disbarred on findings derived from these allegations

The Deepwater Horizon Claim Center sent an eligibility notice to Complainants, who were pleased with the settlement amount ($505,882.94) and did not wish to seek further appeal. Respondent received the settlement funds from British Petroleum on March 7, 2017. However, when asked, Respondent denied to [Complainants] that she had received the funds. Complainants consulted the online BP Claims Status Report, which revealed that Respondent had already received the funds but had failed to disburse them. Complainants said they confronted Respondent, but Respondent continued to deny that she had already received the settlement funds from British Petroleum.

Rather than disburse the funds, Respondent attempted to renegotiate the employment contract with Complainants. Respondent sought to receive a higher percentage of the recovery as her fee. Complainants refused to agree to alter the contract. Respondent then advised Complainants that she had already spent a significant portion of their settlement funds, but was willing to disburse the remaining portion to them, approximately $303,000. Complainants agreed to allow Respondent 90 days in which to disburse the remaining $128,000 to them.

However, the 90-day delay expired and Respondent failed to disburse the remaining funds owed and due to Complainants. On August 24, 2017, Complainants advised counsel for Respondent that they were hiring an attorney to collect the remaining funds owed.

Respondent submitted a sworn statement to the ODC. She admitted that she had disbursed a large portion of $128,000 of Complainants’ funds to another individual as a referral fee. Respondent was unable to completely recall how she used the remaining missing funds. Respondent conceded that she did this without the authorization, or knowledge, of Complainants. Respondent converted $128,000 of Complainants’ settlement funds and, on information and belief, Respondent has still not paid to Complainants any part of these converted settlement funds owed.

(Mike Frisch)