Portland Personal Injury Lawyer Allegedly Embezzled $3.8 Million From Clients’ Insurance Payouts

Portland Personal Injury Lawyer Allegedly Embezzled .8 Million From Clients’ Insurance Payouts

A previous Oregon law firm was sentenced to federal jail on Monday for defrauding at minimum 135 shoppers out of $3.8 million in insurance policy proceeds, according to the Department of Justice, working with the unwell-gotten gains to “bankroll a lavish lifestyle.”

Lori E. Deveny, 57, was sentenced to a lot more than 8 decades in prison and a few many years supervised launch following pleading responsible to mail, bank and wire fraud aggravated id theft revenue laundering and submitting a fake tax return. She was also requested to shell out $4.5 million in restitution to her defrauded purchasers, Wells Fargo Bank, the Oregon Point out Bar and to the Worldwide Income Provider for unreported income.

“If I could go back again, I would select a various route,” stated Deveny at the Monday hearing, according to NBC Portland affiliate KGW8.

Connected: How Bernie Madoff Eluded Federal government Organizations For Many years Even though Managing Premier Ponzi Scheme In U.S.

Involving 2011 and 2019, Deveny reportedly stole funds from insurance proceeds she held for her shoppers in personal trusts. By stealing her clients’ identities and forging their signatures, she was able to transfer money from their trusts into her private financial institution accounts. She would then lull those clients into a fake perception of protection, telling them that their insurance policy payouts would clearly show up in their lender accounts at some point, court files explained.

The DOJ mentioned that quite a few of her victims experienced sustained significant brain and bodily injuries in mishaps, the workplace wrote in their push launch, making them specifically vulnerable to her plan.

“The cruelest thing of all is knowingly offering untrue hope,” explained Exclusive Agent in Demand Bret Kressin, IRS Legal Investigation, Seattle Discipline Business office. 
“Getting now experienced losses, Ms. Deveny’s consumers deserved an lawyer who represented their finest passions. What they got as an alternative was somebody who inflicted far more decline.”

A group of Police Cars

A group of Police Cars and trucks

Meanwhile, she blew $173,000 on excursions to Africa $60,000 on outings to a nudist resort in Palm Springs, California $220,000 on high priced cigars a put together $91,000 on a Cadillac and recreational vehicle $58,000 on veterinary bills and pet-related expenditures and $35,000 on taxidermy.

“Even though serving as an attorney, Ms. Deveny overtly stole income that should have long gone to pay back for health and fitness care for her consumers for significant accidents and ailment,” Kieran L. Ramsey, particular agent in demand of the FBI Portland Industry Workplace, said in the statement.

“Alternatively, that cash funded points like big match hunting outings to Africa and house transforming. She took advantage of persons who have been physically and emotionally hurting by forging insurance plan checks, thieving the resources and lying to her consumers about payouts.”

The Oregon Point out Bar Client Security Fund (CSF), Wells Fargo Financial institution and the IRS also suffered losses in the plan. The CSF created $1.2 million in restitution payments to victims — in accordance to the organization, this is one of the biggest losses in its history, causing it to elevate dues for all associates for two years. Wells Fargo dropped $52,000 when Deveny stole and solid a check out, although the IRS missing additional than $621,000 in individual tax returns when Deveny neglected to report her earnings.

Oxy App

Oxy App

“It’s really hard to overstate the extraordinary influence Ms. Deveny’s crimes experienced on the quite a few harmless and vulnerable victims who trusted her,” Ethan Knight, chief of the Economic Crimes Unit for the U.S. Attorney’s Office environment, claimed in the assertion. “As a former lawyer, she experienced a particular obligation to her clients and to the community, but she regularly abused this believe in and prioritized her possess wants. This is a just sentence for serious crimes.”

Deveny surrendered her regulation license in May possibly 2018 and pleaded responsible in June 2022. She faces very similar condition charges in Multnomah County Circuit Courtroom, where she is scheduled to seem on Jan. 26.

As a outcome of Deveny’s case, the Oregon Condition Bar has elevated the cap on how significantly victims of a dishonest lawyer can assert from the organization’s client safety fund from $50,000 to $100,000, according to KGW8.

Additionally, state lawmakers passed laws that demands coverage businesses to notify beneficiaries when their settlement checks are despatched so that the two shoppers and their lawyers are informed at the similar time, the outlet reported.

Top Apple Lawyer Sees Slight Pay Boost as Legal Docket Grows

Top Apple Lawyer Sees Slight Pay Boost as Legal Docket Grows

Apple Inc. general counsel Katherine Adams received a $27.1 million shell out package deal for the duration of fiscal 2022, a slight maximize from the calendar year prior, as the business coped with a growing litigation docket.

Adams received $5 million in money, together with $1 million in income, and $22.1 million in inventory awards, Apple disclosed in an yearly proxy filing Thursday. She obtained virtually $27 million in 2021.

The concerns Apple is currently wrestling with include lawsuits, a unionization effort in merchants, a choosing slowdown, and a pushback about return-to-place of work protocols.

Apple hired Adams, a previous major law firm at Honeywell Worldwide Inc., to triumph the retiring D. Bruce Sewell as its regulation office chief in 2017. She is perennially one of the maximum-paid authorized chiefs among the US publicly traded businesses.

She been given $26 million in payment in 2020 and $25 million in 2019.

Past yr Adams oversaw a reorganization of Apple’s in-property lawful crew, according to memoranda attained by Bloomberg. The reshuffling made two new groups—product and regulatory, and company, professional, and compliance—within the Cupertino, Calif.-dependent company’s lawful purpose.

Apple named a new vice president of authorized previous October in Heather Grenier, a former associate at the regulation organization Morrison & Foerster who just lately was a senior director at the firm overseeing professional litigation and legal operations.

An Apple spokesman declined to talk about personnel matters.

The modifications happened soon after the departure in late 2021 of Apple’s previous chief litigation counsel, Noreen Krall, as well as the death in February 2022 of Douglas Vetter, a longtime affiliate standard counsel at the company.

Krall, a co-founder of ChIPs Community Inc., a nonprofit women’s technologies legislation group, spent a dozen many years at Apple. Her former work was eliminated in legal’s restructuring.

Apple also noticed its former head of company legislation, Gene Levoff, plead guilty last summer season to insider trading expenses. The business was sued in December by Jayna Richardson Whitt, an intellectual residence attorney who claims she was fired by Apple past calendar year for complaining about abuse by a male colleague.

Compliance, Privacy Improvements

Apple’s company, professional, and compliance group is now led by Kyle Andeer, one more longtime in-dwelling lawyer at the firm who most lately served as Apple’s main compliance officer and head of company legislation. Andeer’s portfolio now consists of anti-cash laundering, opposition, and privateness.

Andeer, who joined Apple in 2010 as the company’s first antitrust attorney, was named vice president of merchandise and regulatory regulation in Could 2022. Apple tapped Andeer to testify at a vital US Senate antitrust hearing in 2021 about its application retail store guidelines.

Heba Hamouda, a previous director of business law who has labored at Apple since 2011, was promoted to triumph Andeer as the company’s compliance main.

Bruce “B.J.” Watrous Jr., yet another veteran Apple attorney and former main industrial counsel and world head of security at the corporation, is now vice president of its company, business, and compliance authorized group. Apple to begin with employed Watrous in 2011 to be its top rated IP attorney.

Jane Horvath, a former senior director of world wide privateness at Apple who took on the job of chief privateness officer in 2021, is leaving the firm this thirty day period to return to personal apply. Bloomberg first reported final calendar year that Horvath would turn out to be a partner at Gibson, Dunn & Crutcher, which announced her hire Jan. 9.

Horvath reunites with Vivek Mohan, one more previous Apple privacy and cybersecurity lawyer who joined Gibson Dunn previous yr as co-chair of the firm’s artificial intelligence and automated systems observe.

Gibson Dunn and Paul, Weiss, Rifkind, Wharton & Garrison represented Apple in a extensive-working antitrust dispute with Epic Video games Inc. Apple prevailed in that fight irrespective of ongoing difficulties to its application shop.

Additional Authorized Promotions

Two other Apple in-household lawyers—Robert Windom and Susanne Geraghty—are now running the company’s written content and products and services regulation and industrial and global legislation groups, respectively.

Alexander Caminas was promoted in October to senior director of products and solutions regulation, a function that observed him choose about the company’s software regulation operate from Joyce Chow, who retired the subsequent thirty day period after three a long time at Apple.

Colette Reiner Mayer, another previous Morrison & Foerster husband or wife employed by Apple in late 2021 as its head of IP litigation, now stories to the company’s chief IP counsel Jeffrey Myers. Morrison & Foerster has been a common focus on for Apple’s recruiters.

Heather Mewes, a previous Fenwick & West associate who has used the past ten years at Apple, was elevated previous May possibly to head of licensing and IP transactions.

Mewes took about a function vacated that exact same month by previous IP transactions head Sarita Venkat, who left Apple to grow to be a deputy normal counsel for world litigation at Cisco Techniques Inc. Venkat is also a co-founder and co-host of the “Heels of Justice” podcast, which highlights gals in the authorized job.

Patent and IP-relevant disputes comprised approximately 40{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} of Apple’s caseload in US federal courts given that 2007, in accordance to Bloomberg Legislation data. Apple employs a massive roster of regulation firms—from Significant Legislation giants to regional specialists—to provide its exterior counsel needs in lawful battles throughout different jurisdictions.

Searching Ahead

An on-line employment web page shows that Apple is on the lookout to employ the service of for a lot more than a dozen positions in its lawful group. The company has introduced on extra than 20 lawyers from Massive Law inside the earlier yr, in accordance to Bloomberg Law knowledge.

Some of those new recruits were produced to offset exits, which include that of Kathryn “Katie” Tague, a a few-yr veteran of Apple’s media content material and expert services crew.

Tague left the corporation previous Might to become general counsel for the XQ Institute, an Oakland, California-centered nonprofit backed by Laurene Powell Jobs, the billionaire widow of Apple co-founder Steve Work opportunities.

A spokeswoman for XQ, which is targeted on innovation in instruction, confirmed Tague took over in Could from former in-household attorneys Edward Garey and Mark Miller.

6 Questions to Ask When Hiring a Personal Injury Lawyer

6 Questions to Ask When Hiring a Personal Injury Lawyer

Conference with a particular injuries legal professional for the 1st time can be mind-boggling, particularly if you never have practical experience with the authorized system.


Choosing a personal harm attorney can be a person of the hardest things you ever do. Not only can it be challenging when you’ve never experienced to get the job done with a lawyer ahead of, but you could also be anxious about lawful proceedings for accidents you sustained in an accident or incident that wasn’t your fault. 

However, the much more questions you check with, the much more self-confidence you may possibly have in the private damage law firm you choose. Think about inquiring these issues below ahead of picking who you think will carry your circumstance to a effective conclusion. 

Have You Been Included In Identical Circumstances to Mine?

When approaching hugely-regarded regulation corporations like Bernard Legislation Group Seattle, it can be worth inquiring whether they’ve been involved in very similar conditions to your personal. This can be an critical issue to talk to immediately after functioning by means of the details of your scenario to see if they have earlier know-how to slide again on. Lawyers who have been associated in a lot of circumstances like your own commonly have gurus and authorized tactics they can count on to likely enhance your chances of a effective consequence. 

Will I Get My Case?

Particular damage attorneys aren’t fortune-tellers, but you can understand a lot about them and their values by asking them no matter whether you will get your lawsuit. The very best legal professionals will by no means convey to you with 100{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} certainty that you will gain your case mainly because everything can come about. If they do promise that you are going to get, their solutions may well include pushing for an early settlement, which can signify you really do not receive the optimum entitlements that remarkably regarded lawyers would combat for. 

How Much Do Your Solutions Charge?

A lot of persons included in accidents search for payment from those people at fault simply because they need to have to protect their incident-connected charges. Victims can accumulate tens of countless numbers of pounds worth of credit card debt connected to charges these types of as health care expenses, time off operate, and automobile damage. 

As a consequence, it’s only purely natural to question how considerably it will charge to enlist the solutions of a own personal injury legal professional. In most scenarios, personal injuries legal professionals function on a contingency price basis, which indicates you really don’t will need to pay back for their time unless you win. Having said that, you might have to have to address administration-similar expenses, such as printing, submitting, court expenses, and any pro witnesses termed upon to reinforce your statements. 

Who Will Handle My Scenario?

In many situations, the man or woman you meet with to examine your circumstance and its opportunity for a lawsuit could not be the exact same person who assists establish it, negotiate with coverage corporations on your behalf, and depict you in courtroom. Often, large legislation corporations draw on the skills of their overall staff to convey your scenario to a thriving summary, which usually means there can be numerous men and women associated. Being familiar with who you will be speaking with and how numerous men and women will actively do the job on your scenario can assistance keep away from any confusion surrounding how your situation is brought to a summary. 

How Extended Will My Situation Acquire?

Image by espartgraphic, via Pixabay.com.
Picture by espartgraphic, via Pixabay.com.

Remaining associated in a own damage lawsuit can consider its toll, and you very likely want it to be about as before long as possible. When you meet up with with a law firm to go above the facts of your case, there’s no hurt in asking how long they believe your case will just take to conclude. 

Although no attorney can convey to you with any certainty, the most seasoned ones who have labored with scenarios like yours may be capable to give you an approximate time body dependent on earlier encounters. Having said that, the speed of a case can also count on how lengthy insurance policies companies choose to reply and regardless of whether the lawsuit is settled in or out of court. 

How Considerably Dollars Will I Obtain?

The aim of many private personal injury lawsuits is to obtain compensation for pain, struggling, and other charges. There’s no damage in asking your preferred personal injury attorney what your probably payment determine will be. Even though they might not be in a position to give you an precise amount, they can mail a demand letter to the at-fault party’s insurance plan enterprise with a determine dependent on your calculated costs. The best lawyers will assess a range of expenditures to attain a figure they believe that is acceptable, these kinds of as: 

  • Professional medical expenditures
  • Expert care fees
  • Healthcare treatment-associated vacation
  • Shed wages
  • Dropped upcoming earnings
  • Property damage
  • Punitive damages 

There are no assures that the determine prepared in a demand from customers letter is what you’ll receive, but it can be an superb beginning position for negotiations. Personalized personal injury attorneys will then choose a share of the sum you get, which ordinarily ranges from 25{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} to 40{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8}. 

Assembly with a individual injuries attorney for the initial time can be mind-boggling, specially if you really do not have expertise with the authorized system. Having said that, by inquiring some of these questions previously mentioned, you may have all the facts you have to have to feel confident in the process in advance.

Meet Best Personal Injury Lawyer, Trey Harrell

Meet Best Personal Injury Lawyer, Trey Harrell







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Mistaken disclosure of confidential documents leads to suspension for lawyer representing Infowars host

Mistaken disclosure of confidential documents leads to suspension for lawyer representing Infowars host

Ethics

Mistaken disclosure of confidential paperwork sales opportunities to suspension for lawyer representing Infowars host

Mistaken disclosure of confidential documents leads to suspension for lawyer representing Infowars host

Norm Pattis, the lawyer of Infowars host and founder Alex Jones, speaks to the media following jurors returned a $965 million judgment in a defamation trial versus Jones in Oct 2022. Image by Bryan Woolston/The Connected Press.

A Connecticut choose has requested a 6-month suspension for a attorney representing Infowars host and founder Alex Jones mainly because the legal professional “carelessly” handled confidential files mistakenly launched to the opposing counsel in a defamation demo in opposition to Jones.

The private files, which were being subject to a protective buy, bundled clinical documents for Sandy Hook plaintiffs in Newtown, Connecticut, who contended that Jones’ lies about the 2012 capturing massacre amounted to defamation. Jones experienced claimed that the taking pictures at the Sandy Hook Elementary College in Connecticut was a hoax.

In a Jan. 5 choice, Decide Barbara Bellis of Waterbury, Connecticut, suspended attorney Norm Pattis for his managing of the “sensitive discovery materials” that ended up mistakenly unveiled to a law firm for plaintiffs suing Jones in Texas for his hoax statements.

Pattis represented Jones in a Connecticut defamation circumstance around the untrue Sandy Hook claims his agency launched the documents to a individual bankruptcy lawyer who released them to the Texas lawyer representing Jones, whose paralegal produced them to the opposing counsel.

Not only did Pattis’ agency improperly release the data, “he did so carelessly, having no ways to designate the supplies as secured by court docket get, mark them as private, or notify the recipients that they had been in possession of delicate and safeguarded files,” Bellis reported.

Litigants and their attorneys expect that their confidential information launched during discovery will be safeguarded, Bellis mentioned.

“Litigants routinely turn above their most personal and delicate details to opposing counsel who are whole strangers and moderately expect that opposing counsel will safeguard the data devoid of even the need for a protective order,” Bellis wrote. “Indeed, our civil justice process is premised on the trustworthiness of lawyers—officers of the court.”

Pattis explained to the Linked Press that he ideas to request a remain of the self-discipline order though he appeals it. Bellis is hearing the remain ask for in a Jan. 13 hearing, in accordance to the AP.

Axios, CNN and Legislation360 also have stories on Pattis’ suspension.

Pattis is at the moment symbolizing customers of the Proud Boys extremist group who are getting tried out in relationship with the Jan. 6, 2021, U.S. Capitol riot. He notified the choose in the situation about the suspension, in accordance to the AP.

An associate at Pattis’ organization experienced delivered the information on a tough generate to a bankruptcy law firm symbolizing Jones’ enterprise, Kyung Lee, who provided them to the lawyer representing Jones in the Texas demo, F. Andino Reynal.

Reynal’s assistant sent a website link to the paperwork to the opposing counsel. The url was supposed to be for a file made up of supplemental production, but it mistakenly provided access to the other resources, including the health care info and earlier undisclosed text messages, Bellis reported.

Noticing that the materials contained private paperwork, the plaintiffs’ attorney, Mark Bankston, alerted Reynal, who advised Bankston to disregard the hyperlink and advised his assistant to deactivate the backlink. Reynal experienced 10 times to claw back the content. When he did not do so, Bankston reviewed the resources. His staff deleted the clinical records but utilised the text messages for the duration of cross-examination of Jones.

Reynal experienced not questioned for the health-related records or the plaintiffs’ tax, work and monetary data. Rather, he sought deposition transcripts and textual content messages generated by Jones and other defendants in Connecticut. Lee experienced sought all the Connecticut discovery, but he had no concept that it would include the plaintiffs’ professional medical information.

Another attorney no for a longer time symbolizing Jones had to begin with offered the files to Pattis’ affiliate and experienced involved a warning to Lee, Pattis, the associate and others that stated Lee might not be authorized to obtain some of the documents because of the protective order.

No a single at Pattis’ regulation company responded to the confidentiality warning. Lee attained a duplicate of the protective order. Soon after, Lee received a hard push in a bubble wrap envelope with no warning about the confidential material.

“The Connecticut plaintiffs’ delicate data, which should have been safeguarded and which was also shielded by the court docket buy, was carelessly passed around from one particular unauthorized particular person to another, without regard for the protective over, and with no exertion to safeguard the Connecticut plaintiffs’ sensitive, private documents,” Bellis wrote.

Bellis cited mitigating factors, like that Pattis has no prior community disciplinary record, and that there was no dishonest or egocentric motive. An aggravating component was that Pattis invoked his Fifth Amendment appropriate in opposition to self-incrimination when he was questioned by disciplinary counsel. Yet another factor is his nearly 30 years of legislation apply, amounting to significant knowledge.

Bellis reported Pattis violated law firm ethics regulations that have to have competence, safeguarding of assets, fairness to the opposing counsel and a duty to supervise some others, and that ban carry out prejudicial to the administration of justice.

Jones was requested to shell out almost $50 million in damages in the Texas scenario and approximately $1.5 billion in Connecticut, according to earlier protection by the New York Times.

Ex-Portland lawyer sentenced to more than 8 years in prison for stealing more than $3.8 million in clients’ money

Ex-Portland lawyer sentenced to more than 8 years in prison for stealing more than .8 million in clients’ money

Former personal injury lawyer Lori E. Deveny, who cheated more than 135 clients out of more than $3.8 million, was sentenced Monday to nearly 8 ½ years in federal prison.

U.S. District Judge Michael W. Mosman called Deveny’s fraud more “calculating and predatory than desperate,” though he said he believed part of what contributed to Deveny’s downfall was the emotional and physical abuse she endured from her late husband, who took his own life in 2018.

Deveny’s defense lawyer pointed to her terrible marriage to a controlling husband who was 16 years older and convinced her to do things she never would have done before.

But the judge said that still doesn’t explain why Deveny crossed the “huge line” instilled in all trial lawyers from the time they’re sworn in: Stealing from clients will get you disbarred, and you’ll wind up in jail.

In addition to sentencing Deveny, 57, to eight years and five months in prison, Mosman ordered her to pay $4.6 million in restitution in what the state bar has called the worst fraud by a single lawyer in Oregon’s history.

Deveny intends to forfeit her home, her lawyer said.

The sentence came after the judge heard testimony from five of Deveny’s victims, many of whom said the lawyer betrayed their trust when they were struggling to heal from serious injuries.

Gabriella Davidson said she was 18 and relied on a promised settlement from a car accident case to help pay college tuition, but the payment never materialized.

Aubrey Hunter, who was in a head-on car crash, said he had to dip into his retirement funds after losing his job, while Deveny kept stringing him along with all kinds of excuses why his settlement wasn’t forthcoming.

“She used me,” said Nancy Freyer , who came to court on crutches, of Deveny. “She told me I was a model client but she failed me.”

She said a doctor removed the big toe on her right foot without consent and she hired Deveny to file a lawsuit. But Deveny kept the medical settlement, claiming she was working to reduce a Medicare lien, Freyer said.

“I felt like I was nothing to her,” Freyer said. “She preyed on me at my most painful, vulnerable time in my life.”

Assistant U.S. Attorney Claire M. Fay called Deveny an “unfeeling financial predator” who used lies and manipulation to defraud her clients. Many had suffered serious brain and bodily injuries in traffic crashes or other accidents and were awaiting payments from insurance company claims that Deveny had filed on their behalf.

Instead, Deveny stole the identities of countless clients, forged insurance checks made payable to them and deposited the money to her own bank accounts to cover her and her husband’s lavish lifestyle.

“For 12 long years, she systematically robbed her clients, not with a gun and a mask, but with a pen and a law license,” Fay said.

Lori Deveny leaves court after sentencing

Ex-lawyer Portland Lori E. Deveny, 57, seen leaving the federal courthouse in downtown Portland with her lawyer, Assistant Federal Public Defender Mark Ahleyemer, after her sentencing. She has to turn herself into the U.S. Marshals Service on Jan. 17.

HUNTING AND CIGARS

Deveny used her clients’ money to pay for “unbridled and decadent spending” on big game hunting trips to Africa, taxidermy costs for the hunting trophies, guns and ammunition, travel to Las Vegas, Mexico, South Africa and Alaska, cruises and fishing trips, according to Fay.

Deveny bought more than $220,000 worth of expensive cigars from Broadway Cigars and more than $60,000 for stays at the Desert Sun Resort, a Palm Springs luxury nudist resort, Fay said.

Deveny also used the money to support her husband’s photography business and remodel their home to include a dog kennel, cigar room and new roof.

She left many of her victims “either destitute or barely able to make ends meet,” Fay said.

Some didn’t know Deveny had settled their claims. When others complained about the length of time to get their payments, Deveny would offer up excuse after excuse, even claiming a bogus death in her family, Fay said.

Hunter, who was in a head-on crash in 2014, said he suffered a head injury and his ankle had to be reconstructed in two surgeries.

Deveny told him he should expect a couple of hundred thousand dollars in a settlement, he said, but then she stalled, telling him that one lawyer she was dealing with had died and then about a year later that the insurance company had gone into bankruptcy.

He said he was laid off and hit rock bottom, pleading with Deveny to take care of his case. He has known her for nearly three decades, he said.

“I was a complete fool, just stupid,” Hunter told the judge. “Sorry, I’m so pissed, I was waiting years for this opportunity.”

Hunter said he read in the paper that Deveny was under investigation for defrauding her clients and immediately called her on her personal cellphone. She still denied she had done anything wrong and told him she’d have his settlement by the end of the year, he said.

“Even when you had been caught … you still lied,” Hunter said, turning toward Deveny as she sat beside her lawyer. “By that point, she had already taken all my money. … I don’t know how you can live with yourself.”

Lori Deveny case

One of the text message exchanges Lori Deveny had with a client, who wondered what was happening with an anticipated settlement of a lawsuit. Deveny would string her clients along with all kinds of excuses, even claiming a bogus death in her family, Assistant U.S. Attorney Claire M. Fay said.Court Exhibit

$4.6 MILLION IN LOSSES

Deveny was indicted in May 2019. Last June, she pleaded guilty in federal court to mail fraud, wire fraud, aggravated identity theft, bank fraud, engaging in monetary transactions with property derived from unlawful activity and filing a false federal income tax return for 2012.

The charges she pleaded guilty don’t cover a full 12 years though she admitted the scheme began in 2006, Fay said. The charges span from April 2011 through May 2019. When agents from the Internal Revenue Service and FBI began investigating Deveny, they could only bank records dating back seven years.

Deveny relinquished her law license in Oregon in May 2018.

When factoring in losses to Deveny’s lawyer’s trust account at Wells Fargo, the state bar’s restitution account and the Internal Revenue Service, Deveny’s theft totaled $4.6 million, according to Fay.

She would transfer client settlement money from her lawyer’s trust account to a series of personal accounts controlled by her and her husband, according to the government. She also made large cash withdrawals from her lawyer’s trust account.

Deveny never reported the money she stole from her clients as income on her federal tax returns for 2011 through 2017. She owes $621,137 to the IRS in past due taxes on her ill-gotten gains, Fay said.

The fraud prompted the state bar to raise dues of all its members for two years to cover partial restitution payments of more than $1.2 million to some of Deveny’s clients, according to Fay.

The prosecution sought a sentence of nine years and three months for Deveny, calling her crimes “totally reprehensible” as a sworn member of the state bar and officer of the court.

Deveny’s lawyer, Mark Ahlemeyer, argued for a five-year prison term.

Her crimes were driven by her attempt to cover the costs of her husband’s extravagant spending and his long-standing physical, emotional and sexual abuse of her, Ahlemeyer told the court.

She was intelligent but sheltered socially, he said. She was valedictorian of her high school class and active in the Church of the Nazarene.

As the youngest student in her first year of law school at Willamette University College of Law, she met her future husband, Robert Deveny, also a first-year law student in the midst of an acrimonious divorce.

It was her husband who took cruises, went on fishing trips and smoked expensive cigars, Ahlemeyer said. She had to get his permission to be buzzed into their home’s cigar room, he said.

It was her husband’s desire to go to the nudist colony, not hers, Ahlemeyer said.

“This case is not about a serial fraudster or a greedy criminal looking to take advantage of vulnerable individuals. Ms. Deveny is a well-meaning person who loved practicing the law and helping her clients,” Ahlemeyer wrote to the judge.

Since her sophomore year of high school, she wanted to be a lawyer to help others, he said.

Now, Ahlemeyer said, “She is 57 years old and has lost essentially everything she has worked for her entire life. She is ostracized and banned from the only profession she has known. Her name and reputation, once unassailable, are in tatters.”

‘MY DEEPEST APOLOGIES’

Lori Deveny case

Many of Lori Deveny’s cients were unaware that Deveny had ever settled their claims . When others complained about the length of time it was taking to get their payments, Deveny made up excuse after excuse to string them along, after she already had stolen their money, the prosecutor said.Court Exhibit

The prosecutor dismissed Deveny’s defense, arguing that her fraud continued after her husband’s death in March 2018.

“Her claims that she was a pawn in her husband’s scheme to acquire spending money are unpersuasive, particularly since she continued her larcenous behavior long after he passed away,” Fay said.

Deveny, a past president of the Oregon Women Lawyers group from 2000 to 2001, said she wishes she could go back and change things, starting with her decision to marry Robert Deveny.

“The one thought that overrides everything is how sorry I am to have caused hurt, distress, disillusionment and mostly the betrayal of trust. I want each individual to know that I did not set out to hurt them,” Deveny said.

“I did not choose them specifically to be a target, but I did fail to see them. I see them now and will always feel an obligation to them,” she said. “Regardless of how many I have helped, I will forever remember those I’ve hurt, and I can only express my deepest apologies.”

Deveny was ordered to surrender to the U.S. Marshals Service on Jan. 17.

She’ll be in custody when sentenced on separate but related state charges in Multnomah County Circuit Court on Jan. 26.

In state court, Deveny has pleaded guilty to 28 felony counts of first-degree aggravated theft, seven counts of first-degree theft and one count of identity theft.

She asked to be housed at the federal prison in Tallahassee, Florida, near close friends.

As a result of Deveny’s fraud, the state bar pushed for a change in state law in 2021 that requires an insurance company to notify a claimant directly, as well as the attorney, if a settlement is reached and money is paid out.

— Maxine Bernstein

Email [email protected]; 503-221-8212

Follow on Twitter @maxoregonian

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