Thursday, July 4, 2013

Disappearing Florida Attorney Suspected For Role Revolving Around Million$ In Missing Clients' Trust Account Cash Reappears, Turns Himself In To Feds

In West Palm Beach, Florida, the South Florida Sun Sentinel reports:

  • Seventy-six days after a Boca Raton attorney’s wife reported him missing, he re-emerged [last week] as he surrendered to the FBI to face fraud charges.

    Now everyone will know Timothy McCabe’s whereabouts for at least the next month: jail.

    McCabe, 55, arrived at the FBI’s Flagler Drive office shortly after 9:45 a.m., accompanied by his attorney, Robert Gershman. Dressed in a T-shirt and shorts, McCabe did not acknowledge a Sun Sentinel reporter’s questions as he surrendered.

    Four hours later, McCabe made his first court appearance with U.S. Magistrate Judge Dave Lee Brannon ordering he be held in custody until his July 22 arraignment. Assistant U.S. Attorney Ellen L. Cohen told the judge that she believes McCabe is a flight risk if he is allowed out on bond.

    After the brief court hearing, Gershman declined to comment about where McCabe has been.

    McCabe reappeared a day after federal authorities filed a criminal complaint alleging that as much as $8 million of his clients’ money has gone missing. He currently faces two fraud charges related to six real estate transactions he handled.
  • McCabe’s wife reported to authorities that she saw him packing his suitcase on April 2, thinking he was going on a business trip to Tampa. Later that day, she and McCabe’s law partner received emails from McCabe’s account apologizing for “a series of very bad business decisions” and vowing to “make things right.”

    “I made people millions and none for us,” the email to McCabe’s wife read. “I am trying to rectify it. If I cannot then I am going to set my affairs in order and finish a few things.”

    Shortly after receiving the email, McCabe’s law partner, Steve Samiljan, discovered that more than $3 million was missing from the law firm’s trust account and title company’s escrow account, according to Florida Bar records.

    That number, though, has grown with auditors and lawyers working for the firm’s title insurance company determining that between $7 million and $8 million is missing, according to federal court records.

    Samiljan, who has said he knew nothing about McCabe’s wrongdoing, could not be reached for comment despite a phone call on Thursday. The Lake Worth law office of McCabe & Samiljan was closed, its lawn overgrown and a window boarded up.
For the story, see Missing Boca Raton attorney surrenders to FBI (Timothy McCabe vanished in April; FBI says up to $8M of clients' money is missing).

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