Montana Bar Again Bags, Boots Repeat Offender For Client Ripoffs As Attorney Cops Federal Plea To Wire, Bankruptcy Fraud

In Billings, Montana, the Billings Gazette reports:

• A former Billings lawyer with a felony record of stealing from clients(1) [] admitted he again stole from clients. Appearing in federal court, Marvin Earl “Toby’’ Alback, 62, pleaded guilty to wire fraud and bankruptcy fraud for misappropriating money from clients for his own personal use. In December, the Montana Supreme Court ordered disciplinary action against Alback, who resigned his license in September amid misconduct allegations.

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• Assistant U.S. Attorney Ryan Archer said that in the bankruptcy fraud, Alback was hired by a family in March 2008 to represent them in a bankruptcy case. When the family had trouble making their mortgage payment, Alback told them to write their settlement and mortgage payments to him and he would deposit the money with the bank. Alback deposited the money into his trust account and never made the payments on the mortgage. Although he eventually paid back the money, he caused significant back payments and late fees to avoid foreclosure, Archer said. The investigation also found that Alback obtained the family’s $557 tax refund check for 2008 and deposited it into his business account. He used the money for personal expenses. The refund check belonged to the bankruptcy estate, Archer said.

• In the wire fraud, Alback represented another client in a lawsuit that was settled for $12,500 in August 2009 and a check was written to his client. While Alback was entitled to a share of the settlement, he forged his client’s name without her knowledge, deposited the $12,500 into his account and used it for his personal benefit. The client received a check for her settlement in October 2009, but it bounced and she has not received any money that was paid to settle the suit.(2)

For the story, see Ex-Billings lawyer admits fraud.

(1) According to the story, Alback was sentenced to 16 years at Montana State Prison in 1987, with 13 years suspended for felony theft. Alback admitted stealing more than $95,000 from two clients. He was disbarred and his license was reinstated in 2000. More recently, Alback was accused of violating attorney rules of conduct by failing to properly represent a Billings woman in a case filed in 2007. He also was being investigated for at least one other complaint. Even though Alback resigned his license in September, the Montana Supreme Courtsaid that did not prevent it from imposing sanctions on him for misconduct, the story states.

(2) If a Montana attorney, either in the course of representing you or acting as a fiduciary, screws you out of money or property through dishonest conduct, go to the Montana Lawyers' Fund for Client Protection for information on how to recover some or all of your losses from the fund.

For other states and Canada, see:

• Directory Of Lawyers' Funds For Client Protection (courtesy of the American Bar Association);
• Check the USA Client Protection Funds Map;
• Check the Canada Client Protection Funds Map.

Maps available courtesy of The National Client Protection Organization, Inc.