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Attorney faces charges of mail, wire fraud

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A federal grand jury in Hammond has indicted a Schererville attorney with two counts of wire fraud and one count of mail fraud after being accused of stealing money from two clients.

William G. Crabtree II is alleged to have embezzled nearly $1 million from the two clients. According to the indictment filed Oct. 15, Crabtree represented in 2005 an estate, from which he embezzled at least $300,000; he also allegedly failed to pay its state and federal taxes. After the theft was discovered, he agreed to pay restitution to the estate, including interest and penalties for taxes.

The indictment also alleges Crabtree devised a scheme this year to defraud and obtain money and property from another client in order to pay the restitution from his 2005 incident.

Crabtree's law firm trust account held $1.8 million from a client he represented in the sale of a restaurant, and Crabtree was instructed to hold the money until the client could purchase another restaurant. In July, Crabtree was to wire $1.7 million for the purchase of another restaurant; instead, Crabtree only wired $168,721. He wired $746,300 from the firm's trust account to another lawyer's trust account to make restitution. Crabtree also allegedly wrote himself a check from the restaurant client's funds for $135,000. In August, Crabtree admitted to the client he didn't have the money in the fund but would obtain a loan to repay the client.

Then, Crabtree allegedly faxed a copy of a check for $1.2 million to the client's attorney claiming he obtained a loan; the check was a fake.

The charges are a result of an investigation by the Federal Bureau of Investigation. Because of the charges, the Indiana Supreme Court Disciplinary Commission filed a petition for an emergency interim suspension Oct. 15 against Crabtree, said Executive Director Donald Lundberg.

Crabtree was arrested and arraigned Oct. 16 and pleaded not guilty, said Mary L. Hatton, public affairs specialist in the U.S. Attorney's Office, Northern District of Indiana. His trial has been set for Jan. 5, 2009.

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  1. File under the Sociology of Hoosier Discipline ... “We will be answering the complaint in due course and defending against the commission’s allegations,” said Indianapolis attorney Don Lundberg, who’s representing Hudson in her disciplinary case. FOR THOSE WHO DO NOT KNOW ... Lundberg ran the statist attorney disciplinary machinery in Indy for decades, and is now the "go to guy" for those who can afford him .... the ultimate insider for the well-to-do and/or connected who find themselves in the crosshairs. It would appear that this former prosecutor knows how the game is played in Circle City ... and is sacrificing accordingly. See more on that here ... http://www.theindianalawyer.com/supreme-court-reprimands-attorney-for-falsifying-hours-worked/PARAMS/article/43757 Legal sociologists could have a field day here ... I wonder why such things are never studied? Is a sacrifice to the well connected former regulators a de facto bribe? Such questions, if probed, could bring about a more just world, a more equal playing field, less Stalinist governance. All of the things that our preambles tell us to value could be advanced if only sunshine reached into such dark worlds. As a great jurist once wrote: "Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman." Other People's Money—and How Bankers Use It (1914). Ah, but I am certifiable, according to the Indiana authorities, according to the ISC it can be read, for believing such trite things and for advancing such unwanted thoughts. As a great albeit fictional and broken resistance leaders once wrote: "I am the dead." Winston Smith Let us all be dead to the idea of maintaining a patently unjust legal order.

  2. The Department of Education still has over $100 million of ITT Education Services money in the form of $100+ million Letters of Credit. That money was supposed to be used by The DOE to help students. The DOE did nothing to help students. The DOE essentially stole the money from ITT Tech and still has the money. The trustee should be going after the DOE to get the money back for people who are owed that money, including shareholders.

  3. Do you know who the sponsor of the last-minute amendment was?

  4. Law firms of over 50 don't deliver good value, thats what this survey really tells you. Anybody that has seen what they bill for compared to what they deliver knows that already, however.

  5. As one of the many consumers affected by this breach, I found my bank data had been lifted and used to buy over $200 of various merchandise in New York. I did a pretty good job of tracing the purchases to stores around a college campus just from the info on my bank statement. Hm. Mr. Hill, I would like my $200 back! It doesn't belong to the state, in my opinion. Give it back to the consumers affected. I had to freeze my credit and take out data protection, order a new debit card and wait until it arrived. I deserve something for my trouble!

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