California attorney faces disbarment over claims he misappropriated $282M in client funds
Lawyer Discipline
California attorney faces disbarment over claims he misappropriated $282M in client funds
July 17, 2024, 1:15 pm CDT
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A southern California attorney could be disbarred following accusations he stole up to $282 million from as many as 60,000 clients.
The California State Bar placed Daniel Stephen March, managing shareholder of the Litigation Practice Group in Tustin, California, on involuntary inactive status on Tuesday, Courthouse News Service reports.
March’s firm, which specializes in debtor’s rights, receives flat fees from clients seeking to invalidate their debts. According to the California State Bar’s notice of disciplinary charges, which was filed in February, March collected $78 to $282 million in fees from 40,000 to 60,000 clients between November 2019 and March 2023. He did not maintain any of those fees in a trust account.
In March 2023, March and his firm filed for bankruptcy and declared under oath that his firm had taken in $282 million in revenue but had cash assets of $4,500, according to the state bar’s notice of disciplinary charges. At one point, March also testified that his firm did not hold money on behalf of clients.
By misappropriating the client funds, March “committed acts of moral turpitude, dishonesty or corruption,” according to one of the 20 charges against him.
“The level of March’s misconduct and misappropriation of client funds is stunning,” California State Bar Chief Trial Counsel George Cardona said in a statement published by Courthouse News Service. “March completely betrayed his responsibilities as a lawyer and his sworn oath of service to his clients and to the profession.
“Given the scope of his offenses, the just outcome in this case is disbarment.”
March could not be reached for comment.
