A former personal injury attorney in Norman was sentenced last month for embezzling from the settlements of his clients.
Duane Thomas Wilson, 61, was a personal injury attorney until 2012, when the Oklahoma Supreme Court accepted his resignation amid allegations that he was stealing from a client trust account. He was indicted on federal charges of wire fraud and failure to file a tax return.
In February 2016, Wilson pleaded guilty to both charges. He admitted in his plea that from December 2010 through December 31, 2011, while practicing law as a licensed attorney, he committed fraud by misappropriating client settlement or judgment funds to his personal use. He admitted to depositing client benefit funds into a trust account, from which he wrote checks to himself, made cash withdrawals, and transferred money in excess of his contractually entitled attorney's fees. Because of his actions, some clients received less than the settlement or judgment due to them, and in some cases, received none of the money to which they were entitled from their lawsuits.
Wilson further admitted in his plea that he willfully failed to file a 2011 federal income tax return.
Last month, United States District Judge Timothy D. DeGuisti sentenced Wilson to 30 months in federal prison for wire fraud and failure to file a tax return. Earlier this week, Judge DeGuisti also ordered Wilson to pay restitution to his former clients, the Oklahoma Bar Association, and the IRS.
Wilson must pay $141,772.01 to 19 former clients, in various amounts ranging from approximately $200 to over $75,000.
Additionally, he must pay $329,398.70 to the OBA to reimburse them for money paid out through the Client Security Fund, a fund established by the Oklahoma Supreme Court in order to reimburse clients who lose money or property through an attorney's dishonest conduct.
Finally, he must pay restitution to the IRS in the amount of $53,836 for taxes and penalties related to his failure to file a federal income tax return for the tax year 2011.
As in most cases, the embezzlement reportedly stemmed from a case of addiction. Often, these white collar crimes are fueled by gambling addictions, shopping addictions, or drug addiction. Wilson's defense lawyer told the court that his client's actions were the result of "an alcoholic downward spiral."
In general, the maximum penalty for a federal wire fraud conviction is 20 years in prison. However, if the crime involves defrauding a financial institution or a presidentially declared disaster or emergency (such as FEMA fraud), the maximum penalty is 30 years in prison.
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