misappropriate

When he tried to disclose the fraud, which amounted to about $4 million, to the city controller’s office, he was instructed by his supervisor to state that only $300,000 was misappropriated, the lawsuit said.

An IRS agent later testified that some of the Ruigomez settlement funds went to compensate other Girardi clients whose settlements he had previously misappropriated.

A Tustin attorney faces disbarment for allegedly misappropriating up to $282 million from as many as 60,000 clients who hired him looking for debt relief, the State Bar of California said.

After McNeal was arrested and charged with murder, Paylor “became fearful of its implications regarding the misappropriated loan funds, the future of the partnership and the plaintiff’s obligations under the loan,” according to the complaint.

Lawsuits brought by investors began piling up, with allegations he had misappropriated their money.