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Subscribe to RSSNEW YORK -- A Manhattan corporate lawyer pleaded guilty on Tuesday to stealing more than $10 million in clients' money, which prosecutors said he spent on pricey restaurants, strip clubs and buying businesses.
The plea ends a year-long legal saga that began last September when Douglas Arntsen flew to Hong Kong -- a day after the Manhattan district attorney's office notified his law firm, Crowell & Moring, that he was the subject of a criminal probe.
Prosecutors later accused Arntsen, 34, of embezzling millions in escrow funds starting in 2009, when he allegedly began siphoning money into bank accounts he controlled.
Arntsen has been held without bail since federal authorities returned him to the United States in January to face the charges.
Prosecutors accused him of fleeing to avoid arrest. His lawyer, Alan Lewis, has said Arntsen was taking a planned trip.
Hoping for boot camp?
On Tuesday, Arntsen pleaded guilty in a Manhattan courtroom to several counts of grand larceny and scheme to defraud.
"He's always indicated his intention to accept responsibility, and he did today," Lewis said after the court appearance.
He will be sentenced in October and faces 4 to 12 years in prison, although The Wall Street Journal last week reported prosecutors' concerns that Arntsen wants to go to a prison boot camp called Shock Incarceration where inmates can be released after six months.
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In a statement, Manhattan District Attorney Cyrus Vance said that the "trust between attorney and client is sacred.”
“This defendant utterly betrayed that trust by stealing large amounts of money from his clients before fleeing to Hong Kong. Today’s conviction holds him accountable for fraudulent conduct that violated the law, abused his clients’ trust, and cost them millions of dollars,” he added.
The statement said Arntsen “began using the funds to support a lavish lifestyle that included visits to expensive restaurants, sporting events, and strip clubs. Arntsen also used the money to purchase businesses for himself, friends, and family members.”
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Prosecutors launched an investigation last fall after one of Arntsen's clients, Regal Real Estate, was unable to account for the money in its escrow accounts.
Regal's managing partner, William Punch, told Reuters that when he confronted Arntsen about $4 million in missing funds on Sept. 12, 2011, the lawyer broke down and admitted he had used some of the money. Arntsen resigned from his firm that day.
Two days later, he boarded a plane to Hong Kong.
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Arntsen's former firm has settled three civil lawsuits brought in connection with Arntsen's fraud, all by real estate companies -- including Regal -- that claimed the lawyer stole funds from their accounts.
"We regret the harm caused by Douglas Arntsen to our clients and our firm and are pleased Mr. Arntsen has acknowledged his crimes with a guilty plea," said Crowell managing partner Ellen Dwyer in a statement.
Reuters contributed to this report.
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Let him out of prison the day after he repays what he stole, with 100% interest.
"pricey restaurants, strip clubs and buying businesses."
What's wrong with strip malls?
Good Morning Bill
wonder if any lawyers will comment on this? I can't imagine so, as "professional courtesy" among them doesn't allow for that.
Cheetah
Nothing, as long as their clothes stay on!
34 years old. Part of the "entitled" generation.
He should certainly do at LEAST a year for every million and throw in another two years on the end of the ten for "BAD BEHAVIOR."
............Lawyers give Lawyers a bad name................
Get caught with a small amount of pot 3 time, go to jail for life. Steal $10, get 4-12 years. What seems to be wrong with this picture?
db2 - Way to say! I'm sick of white collar criminal leniency.
Send him to real prison, stealing is stealing whether you use a pen or a Glock. He's hoping for boot camp send him upstate to Booty Camp. There is no gray either you are a criminal or you are a law abiding citizen, even our politicians need to be reminded of this from time to time, that is why Illinois has 2 governors in prison right now.
Good morning jack,
I suspect the lawyers will have a lot to say ..... out of one side of their face for public consumption, and out of the other side when they're sitting around a table in the club.
Bill
yep, and of course charge the guy for their "service's" who will then pay their fees with the ten mil, hense the "clients" still lose...
yet people still elect lawyers and wonder why they get screwed........amazing............
db2,
You do realize that he will be disbarred thereby not having the means to repay what he had stolen. So your suggestion amounts to a life term for stealing money! How cruel can you be?
PS - works for me!!!
4 to 12 years for stealing $10mil. A street dummie with his finger in his coat pocket, or a note saying he has a bomb, but actually has no weapon at all get 10 to 25 for robbing bank or mini-mart. Banks have a couple thousand in prepared "robber packs" all ready to give to a guy. Minimarts have $50 to $100 in the drawer. When are we going to have judges ready to give serious time to white collar crooks. Likely this lawyer made several hundred thousands a year in legit pay before stealing. With that legit money he already owns a mansion. IF he gets out in 4 years he can either live in the mansion again or sell it to give to his lawyer. Either way the punishment is well out of line with the way they treat other criminals. Because he was a lawyer who swore an oath and was granted special priviledges as a lawyer his sentence should be at least double what they would give a non-lawyer.
Jack- I am a lawyer and my comment is that this guy gives me a bad reputation. I hope he does not get boot camp because as we know, if someone stole this money from a bank they would not get boot camp.
Denver- my comment is the same whether I am in public or private. I know how hard I worked to get where I am and I take my position very seriously. It is crucial that clients have trust in their lawyers and actions like this make us all suspect.
If any one of us were to go to a bank and steal $1 we would go to prison for years and this guy might get 4-12 years for stealing $10 million? We really have things screwed up here, the well to do is getting away with murder.
Be careful. One good apple could spoil the bunch. Seriously, though, I understand and appreciate your comment. I work in the construction industry, and I don't think there are any more dishonest lawyers and contractors than grocers or teachers. Unfortunately, you and I work with the public, and nobody enjoys the stories about the good experiences.
The businesses, the mansions, all the other "extras" still in his/their possession should be sold, and what comes of that distributed back to the clients he stole from. It may not be the whole $10M, but anything to some of these clients is better than nothing. He should be allowed nothing from the fruit of his poisonous tree. And the loss of his law license, good, he should never be able to work in that field again. Maybe he should have to start at the bottom at Micky-D's. In anycase, he should not be allowed to retain any of his theft.
And he should have to do a lot more time.
The new American Reality:
When you steal a car, you go to jail.
When you steal someone's life savings, you get to be a CEO.
I think this guy is part of R$mney's election committee.
Common Sense-2004266 - nice blanket statement. Moron.
Generally, these are the ones that write our laws, run our country, sit as judges, cheat the system, and steal us blind. Laws are purposefully vague to keep the disputes going. They win whether their clients win or lose. And, then after they overcharge for their "services", they still steal more form the rest of us to support their insatiable greed. For you lawyers (lawmakers-lawbreakers), prove that isn't true.
@Julie Van Stelle : You are the moron for calling someone else a moron.
I happen to agree 100 % with common sense. I have seen too many young persons, thinking that they are the navel of the world, that it is revolving around them, and they are entitled to everything without paying their dues and putting in the years of hard work. And I am one of the young ones. So I know what I am talking about.
Hit him with the 12 year sentence.
Ahh, but MT too many of your associates do the same, they just don't get caught or prosecuted for in your profession colleagues cover each others butt. Sure there a few, a handful of attorneys who follow your Rules and value them, but most of them are not partners of firms!
Please explain in detail how a client can be charged for 45 minutes and $180 or more for simply leaving a 1-2 minute voice mail message. To all clients know that YOU do have Rights!!!!!!!
$10,000,000 is chicken feed compared to what the Feds have already allowed to slip by with the investment bankers and Wall street band of thieves, not to mention what the politicians in DC waste and the blood money spent on wars we should not be waging.
He will be punished but the bigger crooks remain free men.
blah, blah, blah..."Topic at hand"
Now there's an intelligent statement. Is that your real face or just the way you picture yourself?
Who knew... A lawyer could be a blood-sucking thief... ;-)
Just so - a lawyer who stole 10 million from his clients - sounds like an average lawyer.
The only remarkable thing is that he got caught, and his fellow lawyers decided to prosecute (he must have violated some of the unwritten rules.)
50 years in prison and the people he stoled from will never see the money boot camp? serve a few months and then he's out and all that lovely money just waiting for him keep his ass in prison.............
12 years for the bastard. HARD TIME Too. And he wanted "boot camp" for what he stole. really. Planned vacation in Honk Kong. 1. He flew two days after he got caught and resigned and 2. He used stoelen money to fund this. and of course he wasnt fleeing prosecution. 12 years is too easy, saw som nice "max" priosn specials on the discovery channel he needs to go to and share a cell.
Hah! One of the 99%!................................................ the 99% of lawyers who make the remaining 1% look bad! I'm in agreement with him staying in prison with a lengthy sentence......... the longest allowable. When the scum pays back what he stole, let him out early. Good carrot-on-stick, no?
I sincerely believe that all prison sentences should depend upon full restitution to victims. Once those who suffered measurable losses have been made whole (return their money with realistic interest), then start the clock on the prison time. Until then, hold him in prison limbo - if he ain't got the assets to pay it back, it will fall to family, friends, or charity to get his derriere out of hock. If no one steps up, the clock never starts. It's not exactly debtors' prison - it is compensation for unwilling victims before sentence is begun.
A greedy money-hungry lawyer? Whatever next - corrupt politicians??
Well my faith is just shattered, I mean a lawyer who screws his clients over? The next thing you know politicians will start breaking their campaign promises.
Sorry Chip bbut unspoken or spoken promises in politicians and from lawyers are commonly broken and never repaired!
At least in prison he'll find lots of people who need legal advice. Of course he's not exactly trust worthy.
When it comes to criminal cases, this is exactly the type of lawyer you want representing you.
Bernie Maddow gets 150 years in prison while scumbag lawyer gets MAYBE 12 years. We're taught to have trust in our lawyers and our legal system. Does anyone see a major discrepency? Shouldn't the lawyer spend more time in prison for betraying his clients' trust? Shouldn't the judges set an example by him and show the American people that they are not just protecting their own kind? These are the same lawyers who "legally" hide their misdeeds by entering politics. And by extension, do we need lawyers to rule us as president and legislatures?
12 year sentence?....thats a million a year..... alot of people would do time for this amount......if he wants the boot camp prison..give him 12 years of it......its things like this that will give lawyers a bad name.
Stole 12 million over 2 years, where the tuck were the accountants? I wish white collar crimes were punished more severely because the crime isn't just one instance of malpractice it is a continual deception founded solely in greed.
Shock Incarceration for something like this is a bad joke.
That is nothing. Look what the Obama Administration has stolen from the US Taxpayer for their Green Policies
Your crazy. Go back to your ward.
Educate yourself, Miss "We Have Had Enough." Reading is fundamental!
http://www.forbes.com/sites/rickungar/2012/05/24/who-is-the-smallest-government-spender-since-eisenhower-would-you-believe-its-barack-obama/
"It’s enough to make even the most ardent Obama cynic scratch his head in confusion."
"Amidst all the cries of Barack Obama being the most prolific big government spender the nation has ever suffered, Marketwatch is reporting that our president has actually been tighter with a buck than any United States president since Dwight D. Eisenhower."
Now, you were saying..........
Enough: Time to take your meds!
Enough:
You are, obviously, just another foaming at the mouth troll politicizing any story that appears in the public domain.
I assume the orderlies remove your straight jacket a couple times a day so you can spew out your meaningless drivel. And, oh, if you need a good lawyer, Arntsen might just be the guy for you.
blah, blah, blah...you kind of people can NEVER stick to the topic at hand. If you don't like the U.S., then move to Iran!
We HAVE had enough...enough of YOUR kind!
Let us first learn how to spell "ENOUGH" before we start to complain about some imaginary thoughts in your head.
Every true American should stand up and demand that this kind of crime needs SEVER punishment, not a slap on the wrist or a country club rest period. I suggest this man is stripped of all his freedom fro a minimum of 15 years. and when released to begin a probationary period requiring physical labor and another 10 years to be reporting his daily activities. We have become so very passive about white collar crime that people do this with no fear that they will ever get punished. We see hundreds of these crooks ruining the entire life of other people and yet we forgive their actions and give them a stay at a country club at our expense. White collar crime needs to be reclassified as felony crimes that require mandatory sentencing for very long times and never a release until repayment is made first.
"Steal a little, and they throw you in jail. Steal a lot, and they make you KING."
I urge all Americans to turn off the television, get out of the recliner, and change their complacent position. The people of this country, while predominantly blaming politicians, have forgotten their individual stake in the success of this great nation. A good number of citizens are in denial regarding who contributed to the economic disaster. YES...average Americans helped create this mess!
When did the strongest AND weakest, among men and women, become two separate entities?
...
Glad to see he was able to screw over some 1 %ers.
Obama / Biden in 2012.
...
Biden- the gift that just keeps giving.
The American people are suckers. We are insulted on an ongoing basis by the legal/political system in this country that we are told to believe in. Go to law school and get a license to steal. Get into politics and get a license to steal in a really big way! Do you believe that judges are unbiased or honest? They'll give this thief Arnsten a slap on the wrist after his lawyer slips the judge a slice of his swag. Remember when Clinton pardoned all the thieves just before he left office? That's how the system works.
Duh...lawyers steal...what is amazing about this story is that he was caught, prosecuted and sent to prison. Usually they hold dinners in honor of people like this...and name them "Person of the year." Why the difference? Corporate lawyer...so maybe he stole from corporate clients...and these clients had politicians/judges/law enforcement officials in their pockets...so they were able to buy "justice". If this lawyer stole from the" little guy"...or regular people...he would have been lauded by the very people that put him away this time. Go figure.
Jodi - You are obviously very cynical, and my guess is that you are also uneducated and post comments without any factual basis whatsoever. Please name some lawyers that have been named "person of the year" for stealing from clients? Who has been lauded for stealing from regular people? The fact of the matter is that the individual state bar associations monitor lawyers' escrow / IOLTA accounts very closely. If there is any money missing, the attorney gets sanctioned / suspended or disbarred. Your comment is absurd. You are furthering a stereotype of lawyers without a shred of factual basis. Since you seem to embrace stereotypes, I guess your opinion on women is that they are happiest at home, barefoot and pregnant? What's your profound view on minorities? The scariest thing to me is that you probably vote.
Marshall. CODE OF HONOR--one may not call other NV members names or desparage them.
Just for you, I'll repeat a well known truth:
Generally, these are the ones that write our laws, run our country, sit as judges, cheat the system, and steal us blind. Laws are purposefully vague to keep the disputes going. They win whether their clients win or lose. And, then after they overcharge for their "services", they still steal more form the rest of us to support their insatiable greed. For you, Marshall and all lawyers (lawmakers-lawbreakers), prove that isn't true.
And, thank you for another chance to say:
OBAMA/BIDEN 2012, CERTAINLY!
...........only an good attorney who's been violated by one of his own could understand what victims have to endure, so let their profession clean house and rid those who've violated that TRUST !
Louis, then there would only be a handful of attorneys left if that much.
Most go into law for the money rather to represent those who have been treated UNLAWFULLY!
Do they care about the outcomes, not really for they still benefit even if they do their client Wrong!
Just one of the many crocked lawyers, but one of the few who get caught and have to pay a price.
Just a side note-a lot of politicians are lawyers-scary.
And some politician/lawyers were not even very good at being a lawyer... in particular a rather large-eared politician living in the White House that's done nothing for the last four years except vacation come to mind!
PRISON TIME, please. And throw in a side of gang rape.
I f*****g hate lawyers.
This guy is no better than any other thief, so why give him any leniency at all? Put him in the general population in a prison renown for its strictness and let him serve every minute of the maximum sentence -- oh, and disbar him from ever practicing law ever again in any state. Pull his passport and send him instructions on how to flip burgers -- oh, they have machines for that now, huh?
hey i would take that deal myself. 6 months? for 10 MILLION....oh hell yes, where do i sign up?.............
Hell, he needs to run for US Congress or the Senate. Maybe a write in candidate for President. Just the kinda guy they are looking for, and he already has the experience he needs to be another succesfull liar, cheat and theif running our Government for the people!!!!!!!!!!!!
JUST ONE MORE SHINING EXAMPLE of the corrupt Republican corporate MONARCHY! This lawyer and exlax ETCH-A-SKETCH go hand in hand when it comes to thievery! The ONLY DIFFERENCE is exlax ETCH-A-SKETCH is MORE SNEAKY! He works REALLY HARD at hiding his corruption! Unfortunately, his corruption shines right through his face! LIES & TWISTED WORDS! How utterly DISGUSTING!
Wow....are you gnashing your teeth right now?...... just wondered.................:)
'TR' Rose II, wake up! It's not the corrupt republicans, it's the corrupt democrats too! Lefty Obama is worth millions and makes millions for all his handlers and cohorts. He's pitting everyone against each other. What has he done for this country in the past 4 years? What has he done for you? Are you more proud of your country since he took office? Why would you reward him with 4 more years of wealth and privelege?