After a high profile murder-suicide by a lawyer who killed himself and his family, it was revealed that the lawyer had been involved in a Ponzi scheme that victimized many of his clients. One of the lawyer’s longtime friends, who was also a client, owned a professional practice that “invested” with the lawyer. All of the invested funds, in a Keogh retirement plan, had been lost in the scheme.
The professional practice had obtained a fidelity bond to cover mishandling of funds under the Keogh retirement plan. A claim was filed under the bond, but the fidelity bond insurer denied the claim, alleging that there was no coverage under the terms of the bond.
Our firm was hired to pursue the substantial proceeds from the insurer. Through tenacious research, the development of creative arguments, and pursuit of litigation, we were able to obtain a very favorable settlement for the client.