Showing posts with label gambling addiction. Show all posts
Showing posts with label gambling addiction. Show all posts

Sunday, September 12, 2010

2-Years for Attorney who Gambled Away $2.5 million Client Dollars


Bruce Vielmetti at the Milwuakee-Wisconsin Jounal Sentinel reports on the sentencing of the Greenfield, Wisconsin lawyer who gambled away client funds of $2.5 million dollars.  His report:

"A Greenfield lawyer who gambled away nearly $2.5 million of a client's money said at his sentencing Friday that playing the slots 'was like the greatest drug there ever was,' but that he hasn't gambled since his scheme was uncovered 22 months ago.

Thomas H. Koch, 46, has been in treatment for a gambling addiction and attends Gamblers Anonymous meetings twice a week while working as a dishwasher.  'Gambling isn't about the money,'  he told Circuit Judge David Hansher. 'That's just the means to the end.'  Koch said he had tried to stop many times, but couldn't until he was caught. He said he's happy to be away from the casino, and he apologized to his client, family, friends, the court and the state bar.

Prosecutors recommended four years, and Koch's attorney suggested a year in jail with release for work and therapy, and a stayed prison sentence to be served if Koch failed to meet conditions.  [Judge] Hansher credited Koch for quickly taking full responsibility for his crime once it was uncovered, for surrendering his law license and committing to treatment for his addiction. He agreed Koch probably didn't need prison to deter him from going back to the behaviors that have essentially ruined his life.

But because of a need for general deterrence - a message to others that stealing so much money can't go unpunished - [Judge] Hansher sentenced Koch to two years in prison, followed by four years of extended supervision. He must continue with Gamblers Anonymous and psychiatric treatment, and not enter any kind of gambling establishment anywhere, or gamble online.  He also ordered Koch to pay $2,421,768.57 in restitution, even though Assistant District Attorney Kurt Benkley said Koch has no assets and likely will never pay the money back.

Nearly two dozen people were in court to support Koch, and more than 30 submitted letters to the court. His wife said that even when he was gambling, he always was an outstanding, involved, caring father to their three sons, ages 7, 10 and 12. His sister said that in their family of eight children, they were expected to be self-sufficient and she was sad he felt he could never confide his problem to her. Since his arrest, the whole family's communication has improved, she said.  'For the first time in his life, he seems calm,' Kristin Koch said.

Koch, a 1990 graduate of Marquette University Law School, operated his own law office at 3466 S. 13th St. Affiliated Computer Services, a Dallas-based company, works for medical insurers, checking to see whether their clients are suing to recover costs for their injuries when possible. ACS hired Koch in 2001 to pursue such cases in the Milwaukee area for ACS's insurance company clients. In 2007, a new litigation manager at ACS noticed Koch had about 360 open claims. When he failed to reply to her request for status updates, she found that about 270 had been settled, but that no proceeds had been forwarded to ACS. Company officials came to Milwaukee in October 2008, and Koch admitted his embezzling.

Koch had told [Judge] Hansher that in 2006 he signed up for Potawatomi's self-restriction list. He said he stayed away for two weeks, but when he returned no one turned him away, and that he collected on hundreds of jackpots after he was supposed to be banned. 
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I've known some compulsive gamblers in my life.  A compulsive gambler with access to a fiduciary account is a combustible situation for the client(s).

The 2003 film with Phillip Seymour Hoffman, Owning Mahowny, probably comes closest to capturing the essence of what Thomas Koch experienced at the height of his addiction. Watching this movie was physically sickening for me, no doubt I was seeing a manifestation of my separate issues played out through the gambling addiction of the protagonist. I imagine based on things said in 12-step meetings that people struggling with this addiction suffer the same sort of "high" described by crack addicts.

Wednesday, August 25, 2010

Lawyer Schemer, Scammed


The ABAJournal.com tips to this Washington Post article about the Montgomery County malpractice lawyer who was using his IOLTA account to improperly pay bills apparently fervently hoping he could get his bills, his taxes and his clients paid.  Bradley Schwartz's downfall was when he fell for the foreign client "retainer scam."  The way this thing works is that a lawyer receives an unsolicited retainer from a prospective foreign client written on a real check.  The foreign client writes, in effect, I'm owed lots of money from so-and-so will you represent me?  Oh, here's your retainer, a check for a small fortune is enclosed, but I mis-cut this check please deposit and refund $5,000, $10,000.  The idea is the greedy recipient deposits the check and without thinking sends along a check in the requested amount.  It turns out that the "retainer check" is "NSF," but the lawyer's refund check is stolen by the scammer. 

In the case of Bradley Schwartz, the schemer's $325,000 "NSF" check was deposited into a deep, dark hole, and Schwartz who owed clients nearly a $1 million dollars, started writing overdue checks to clients which immediately began bouncing.  This led to a criminal investigation resulted in Schwartz's jailing.  He was sentenced to 5 years, in what the sentencing judge called a tragedy of Shakespearean proportions.  Apparently Judge Salant meant Falstaff, as Mr. Schwartz was living large and gambling the money that did not belong to him. 

Tuesday, May 11, 2010

Double or Nothing

The Cape Cod Times has a report of the disbarred lawyer who has twice bilked clients of massive amounts of money to feed an online poker obsession.  According to the Times report:

"A disbarred Dennis lawyer admitted Friday that he stole $650,000 from a client to feed his gambling habit.

John 'Jack' Roberts Jr., 59, pleaded guilty in Barnstable Superior Court to one count of larceny over $250 by a single scheme.  Once a respected real estate attorney, baseball coach and town volunteer, he used his client's money to fuel an obsession with online poker, according to court records. Prosecutors alleged that Roberts stole $650,000 from Middleboro.  This is the second time Roberts has been convicted of bilking a client out of cash so he could gamble it away. In 2007, he was sentenced to house arrest after pleading guilty to stealing $137,000 from a Sandwich woman's estate. At that time, he had control of the late Alice May's $600,000 estate. resident Norman Sasville – wiring the bulk of it to gambling Web sites."
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When I was at Fort Knox learning how to shoot a tank, before going overseas I got into a poker game and I lost $12 in mmmmmm 5 minutes.  This $12 represented approximately 9 % of my monthly income in 1972 dollars.  I did not enjoy the sensation.  This turns out to have been one of the luckiest and cheapest of my bad learning experiences since aside from the occasional lottery ticket--I do not find gambling attractive or enjoyable. 

Is there a more concentrated example of insanity than this story?

Thursday, February 11, 2010

Memphis Lawyer Steals from Children's Trust Funds to Gamble His Career Away

James Hoots, (pic) a Memphis, Tennessee bad lawyer who specializes in Probate matters was stealing from a children's trust fund so he could feed his gambling addiction according to the Memphis Commerical Appeal.  This is from the CA newsite story:  James M. Hoots has been charged with stealing some $76,000 from a children's trust fund and blowing it at the Tunica casinos.


Hoots . . . has been licensed in Tennessee since 1990.  The 56-year-old attorney was booked into the Shelby County Jail on Friday and is scheduled to be in General Sessions Criminal Court on Monday.  He was to be released on his own recognizance.  Authorities received a complaint several months ago that Hoots had taken money from the children's trust fund without permission.

The administrator of the estate, Lana Scott, told detectives that when she confronted Hoots about the missing money, he told her he had a gambling problem and had lost it.  'I took the children's money and took it to Tunica to try to make more money,' Scott said Hoots told her in November.  She said that on Nov. 18, Hoots gave her a promissory note, pledging to pay the children $76,206.10.  The additional $206.10 was for interest normally earned on probate accounts, according to an affidavit.  He is charged with theft of property over $60,000, which carries a standard sentence of eight to 12 years in prison.
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Casino investment strategies tend not to "make more money" as Mr. Hoots claims to have believed. 

Saturday, December 5, 2009

Corrupt Judges and Lawyers! We Love You Louisiana

Louisiana Federal District Judge Thomas Porteous is in the process of being impeached, and it's likely he will be sent to prison.  According to news accounts, Porteous is a longtime serving State and Federal judge.  The Times-Picayune wrote in t 2006, that Judge Porteous was one of Lousisiana's most popular jurists, first elected to the State bench and subsequently appointed to the US District Court by President Bill Clinton.


Porteous' popularity stemmed from his charismatic character, self-deprecating humor, generosity to support staff.  His friends were the cream of the New Orleans Bar; he never lunched alone or in later years, picked up a check.  In fact, Porteous was so deeply in debt due to a gambling addiction he surreptitiously  filed personal bankruptcy under a pseudonym.  You ask, how? Well, I'll revisit the how in a subsequent post--let's just say the questions surrounding Judge Porteous are endless.  After getting released from his gambling-related indebtedness, Porteous returned to the tables and fell even deeper into debt.

The part I wish to focus on are the attorneys who got involved in the corruptions.  According to news reports many notable Louisiana lawyers are lined up to take the fall with the Judge for bribery, and corruption.   Robert Creely and Jacob Amato, two of Judge Porteous attorney pals told a Congressional panel that hey had been making cash payments to the Judge in exchange for assignments from the bench for over a decade.  Disciplinary charges are pending against them.  Three other attorneys:  Don Gardner, Leonard Levenson and Warren "Chip" Forestall  are also known to have provided Judge Porteous with gifts and cash.  The anecdote that is most disturbing to me concerns the Judge's May 1999 trip to Vegas for his son's bachelor's party, Attorney Creely helped pay for the trip, Attorney Gardner was in the midst of litigation in Porteous's court and Creely's partner, Jacob Amato represented one of the other parties.  It's confusing, but if you're at all interested in the ideal of impartial justice--the convoluted tale of corruption should hit you right in the pit of the stomach.

Years ago I was handling a case involving a very powerful nursing home operator in a small county near the border of Our State,  neither the nursing home operator or my client had any particular ties to this county or its court.  The nursing home operator was accustomed to having his way--so, Mr. Nursing home Operator bought the County Prosecutor's son, a ne'er-do-well lawyer who couldn't sue his way out of wet tissue.  The lawyer son did nothing in exchange for this employment except sign documents, a brilliant lawyer from the state capital who specialized in nursing home law did all the work.  During the pendency of the lawsuit the Judge assigned to the case attended a "reverse raffle" as a guest of the prosecutor, and the prosecutor's son--message sent, message received.    My client dismissed her case.

I've said many times, here at the Bad Lawyer blawg, that it was rare occasion that I encountered real corruption among judges--while we the people encounter and engage in institutionally corrupt or perverse judicial selection, lawyering, and justice--the few really corrupt judges, still have the power to strike awe.