| Clients' Security Fund of Ohio 65 South Front Street, 5th Floor Columbus, Ohio 43215-3431 |
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Hours: 8 a.m. - 5 p.m. Phone: 614.387.9390 or 800.231.1680 (in Ohio only) Administrator: Janet Green Marbley |
FOR IMMEDIATE RELEASE
Contact: Janet Green Marbley
614.387.9390
COLUMBUS, OHIO (June 2003) -- The Board of Commissioners of the Clients' Security Fund of Ohio (CSF), met on Friday, June 13, 2003 and awarded more than $500,000 to 25 victims of attorney theft. Thirteen former or suspended Ohio attorneys were found to have misappropriated client funds.
Eight former clients of former attorney Mary Kerns were awarded a total of $307,931 as a result of thefts by Kerns. Kerns, who practiced law in Union and Marion counties, pleaded guilty to nine charges of theft, and is currently serving a four-year prison sentence. Kerns resigned from the practice of law April 9, 2002, which means that she can never practice law in the state of Ohio.
A former client of disbarred Youngstown attorney Richard Goldberg was awarded $50,000 as a result of Goldberg's theft of funds belonging to an estate. In August 1999, Goldberg pleaded guilty to charges that he defrauded at least $4.4 million from 23 clients between 1993 and 1999. Goldberg was originally sentenced to 41 months imprisonment; however his sentence was increased to 57 months due to a violation of Goldberg's agreement with prosecutors. He was also ordered to make restitution to his former clients.
Four clients of former Fairborn Municipal Court Judge Joe R. Fodal were awarded $4,412.00 as a result of Fodal's failure to provide the legal services requested. Fodal served as judge from 1990 to 1996, when he was defeated in his bid for re-election. Prior to his judgeship, he spent 17 years as the prosecuting attorney for Fairborn, Beavercreek, and Bath Township. In June 2001, the Supreme Court of Ohio indefinitely suspended Fodal's license to practice law.
The CSF Board of Commissioners also awarded reimbursement to former clients of two Columbus attorneys, John J. Connors, Jr. and Charles E. Smith, as a result of their failure to provide the services requested. Mr. Smith's license to practice law was suspended May 23, 2002. Connors' was permanently disbarred by the Supreme Court of Ohio in December 2002.
Former clients of two Cleveland attorneys received reimbursement from the CSF as a result of thefts committed by their attorneys. Disbarred attorney Leonard Young was found to have received $660 in fees from one of his former clients, but then failed to provide the services requested. Young was disbarred by the Supreme Court of Ohio July 18, 2001. A former client of attorney Peter M. Muhlbachwas awarded $23,200 which was misappropriated by Muhlbach following his receipt of funds pursuant to the Ohio Transfers to Minors Act. Muhlbach was suspended from the practice of law Sept. 8, 1999, but has since been reinstated.
Three former clients of Cincinnati attorney Allen Schwartz were awarded a total of $129,876 in reimbursement from the CSF. In each claim, Schwartz misappropriated funds being held in trust/escrow for his clients. Schwartz was permanently disbarred April 16, 2003, which means that he cannot practice law in Ohio.
Former clients of three other Cincinnati attorneys were also determined to be eligible for reimbursement from the CSF. A former client of disbarred attorney R. Bruce Selnick was awarded $2,500, which was paid for services Selnick failed to provide. A former client of suspended attorney William M. Al'Uqdah was awarded $750 paid for services that Al'Uqdah failed to provide. Al'Uqdah received an interim suspension Oct. 4, 2001, and additional disciplinary action is still pending against him. Suspended attorney Martin L. Watson failed to provide services to a former client, resulting in a $600 reimbursement award to the client. The Supreme Court of Ohio indefinitely suspended Watson from the practice of law in Ohio July 18, 2001.
A former client of deceased attorney Douglas Sexton, who resided in Lexington, was awarded $2,958.00 as a result of Sexton's failure to provide the services requested. Sexton, who passed away June 1, 2002, had previously received an 18-month suspension from the practice of law in Ohio.
The CSF reimbursed $9,723 to a former client of the late Kenneth H. Inskeep of Trumbull County. Inskeep, who committed suicide in December 2000, misappropriated funds belonging to an estate.
The CSF was created in 1985 by the Supreme Court of Ohio to reimburse victims of attorney theft. The CSF is not taxpayer funded, but funded entirely by registration fees paid by every Ohio attorney. Ohio has more than 37,000 attorneys engaged in the active practice of law. Less than one tenth of one percent of those attorneys are involved in CSF claims.
Law clients who believe they have sustained financial losses resulting from attorney theft, embezzlement or misappropriation should contact the CSF by calling 614.387.9390 or 800.231.1680 (toll free in Ohio).
• 65 South Front Street Columbus, Ohio 43215-3431 •