Sunday, March 17, 2013

DC Lawyer Cops Plea To $100K+ Client Ripoff; Resolved Lawsuits Without Telling Victims, Then Pocketed Settlement Proceeds

From the Office of the U.S. Attorney (District of Columbia):
  • Deairich R. Hunter, 47, an attorney from Washington, D.C., pled guilty [] to a federal charge stemming from his theft of $109,830 in payments from insurance companies that were intended to settle some of his clients’ disability and personal injury claims.
***
  • Hunter pled guilty to a charge of theft or embezzlement in connection with health care. He is to be sentenced April 26, 2013 by the Honorable Beryl A. Howell. The charge carries a maximum statutory sentence of 10 years in prison and a fine of up to $250,000. As part of his plea agreement, Hunter agreed to pay $109,830 in restitution to his clients and a medical provider whose bills were to be paid out of the settlement funds.
***
  • [Among other things,] Hunter generally agreed to notify these clients of any offers of settlement and to inform clients of significant developments, among other things. In some cases, he agreed to pay his clients’ health care expenses directly from the proceeds of the recovery in their cases.

    However, on a number of occasions, Hunter settled such claims without notifying his clients and without authority to do so and then the defendant stole the settlement proceeds, resulting in a total loss amount from this scheme of $109,830.
For the U.S. Attorney press release, see Lawyer Pleads Guilty to Stealing Money Intended For His Clients (Scheme Cost Victims More Than $100,000).

(1) The Clients' Security Fund of the District of Columbia Bar manages and distributes monies to members of the public who have sustained a financial loss caused by the dishonest conduct of a member of the DC Bar. It reimburses clients up to a limit of $75,000, according to its website.

For similar "attorney ripoff reimbursement funds" established to reimburse clients who have suffered a loss due to the dishonest conduct of attorneys in other states and Canada, see: