LOS ANGELES, Aug. 30, 2018 /PRNewswire/ — Law firm RMO LLP, formerly RMO | Rahn Muntz O’Grady LLP, has prevailed in securing a $2.1 million judgment on behalf of its client, a Florida physician defrauded by a suspended attorney and longtime friend.
In a classic case of affinity fraud, plaintiff’s long-time friend and suspended attorney entered into an agreement whereby he borrowed assets from Plaintiff and promised to repay them plus a premium. Instead of honoring his obligation, the attorney/friend – who had been twice-suspended by the State Bar of California – continued to defraud the plaintiff through subsequent investments and contracts.
“He manipulated his friendship to defraud his friend,” said RMO Managing Partner Scott E. Rahn, who prosecuted his client’s claims for breach of contract, fraud, conversion and constructive trust. “Regrettably, he left our client, a long-time friend, with no choice but to sue to get what he was owed. It’s very unfortunate, but we are happy for our client that we were able to secure this result.”
The State Bar of California’s website shows that the attorney was suspended in 1997 and again in 2012 for filing client papers containing false and misleading representations with the Securities and Exchange Commission.
Rahn said the case highlights the need for every investor, especially the elderly, to be cautious with your financial affairs and to understand who you’re doing business with, even a friend.
“It just makes good sense to do your due diligence on anyone you’re going to trust with your financial security,” Rahn said. “There is a lot of publicly available information out there. Take the time. At the very least, it will give you good questions to ask. At worst, it could help you avoid a similar outcome.”
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