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Nevada State Bar says local attorney misappropriated millions

Door of Lawyers West ask for people with legal questions to call the Nevada State Bar. 12/9/16 (Jeff Gillan | KSNV)

In court filings obtained by News 3, the State Bar of Nevada accuses attorney Rob Graham of misconduct and charges that he “misappropriated millions of dollars from his current and former trust, probate and estate clients.”

Graham abruptly shut down his Las Vegas practice December 2nd, according to the Bar, laying off his staff and leaving both staff and clients in limbo.

Late Friday afternoon, the State Supreme Court temporarily suspended Graham from practicing and restricted him from using client funds.

The Bar spelled out its claims in a December 8 filing.

RELATED | Probate attorney abandons office, clients; Nevada Bar expected to file for suspension

The Bar says on November 17, Graham was ordered to transfer more than $1 million dollars he was holding for a former client to that client’s new attorney. Graham, according to the filing, told attorney Michael Kling he had more than a million in the bank but never complied with Judge Gloria Sturman’s order to send the money.

Then, on December 2nd, abruptly closed up shop, where he called a staff meeting “and informed them that he was abandoning the law practice as of that day and that everyone was laid off.”

The Bar’s complaint says prior to the shutdown, Graham “had routinely and consistently failed to diligently distribute funds being held for clients in trusts, probates, and estates, and failed to communicate with these clients regarding the status of their money.” The State Bar says Graham “lied to clients as to the true status of their client funds.”

In investigating Graham’s financial condition, the Bar says Graham should have been holding more than $13 million in trust for 51 clients. The complaint says Graham’s bank, City National, said the balance was actually “in the low six figures” and that Graham had misrepresented his finances.

“Something else is going on here,” said Terry Freeman, a client of Graham’s. Graham was settling his father’s estate, who died last year. Freeman and his sister-in-law estimate there’s $130,000 potentially at risk, most from the sale of the father’s Las Vegas house. “Something has to be really bad for him just to turn away and walk and close the door,” Freeman added.

Attempts to reach Graham were unsuccessful. Calls to Graham’s Henderson attorney were not returned.

The Freemans aren’t optimistic.

“My honest opinion is it's lost,” says Setta Freeman about her family’s money. “I can’t see why else he would just disappear like this unless he emptied the trust account.”

12-08-16 Complaint Without Exhibits by Anonymous zKUNzIj on Scribd



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