Tustin attorney heading toward disbarment for allegedly stealing $282 million from clients – Daily News

A Tustin attorney accused of misappropriating $282 million from about 60,000 clients will likely be disbarred, the California Bar Association announced Tuesday (July 16).

Daniel Stephen March, a lawyer since 1982, has been charged with 27 ethical violations in two separate complaints alleging mass misappropriation, the Bar Association said in a statement.

March, 68, filed a motion with the California Bar in May in which he said he did not intend to contest the charges.

The District Court of the Bar Association entered a default order against March, which was requested by the Office of General Counsel of the Bar Association on July 1. The District Court of the Bar Association will recommend to the Supreme Court of California that March be disbarred if he fails to timely file a response to the default order.

“The scope of March’s misconduct and misappropriation of client funds is staggering,” said George Cardona, general counsel of the Bar Association. “March completely betrayed his duties as a lawyer and his oath to serve his clients and the profession. Given the scope of his crimes, the just outcome in this case is disbarment.”

March did not respond to a request for comment Tuesday.

According to Stockholm District Court documents, from November 2019 to March 2023, March served as CEO, treasurer, sole board member, shareholder and managing partner of the Litigation Practice Group.

LPG’s website says that during a “long, distinguished career” March represented clients ranging from politicians to police chiefs and movie stars.

LPG entered into fee agreements with customers, promising to provide debt relief services and refunds if their debts were not discharged. Each agreement charged a fixed fee to be paid in monthly installments.

March is accused of misappropriating between $78 million and $282 million in advances from 40,000 and 60,000 customers.

March failed to keep any of the fees in the escrow account, according to the State Bar complaint. “The advances for the fees were not deposited into the escrow account or were held in escrow for approximately one day,” the complaint states.

On March 20, 2023, March filed for bankruptcy protection and stated under oath that LPG had revenue of $282 million and cash assets of $4,500.

From March 2020 to September 2021, March made 20 separate bank deposits totaling more than $78.8 million into a client trust account and in each case withdrew the funds before the end of the month, the state Bar Association said.

The complaint does not disclose how the funds allegedly misappropriated by March were spent.

The Office of General Counsel charged March with a number of offenses, including failing to maintain required custody of funds in a client trust account, commingling funds, and committing immoral, dishonest, and corrupt acts.