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Valpo ex-attorney Holesinger gets 10 years

August 31, 2015

Former Valparaiso attorney Clark Holesinger has been sentenced to 10 years in federal prison and ordered to pay nearly $1 million in restitution to clients he defrauded.

Holesinger, 53, was sentenced Aug. 27 by Judge Robert L. Miller in the U.S. Court District for the Northern District of Indiana. He pleaded guilty in April  to money laundering and wire fraud charges connected to the misappropriation of client funds.

Holesinger stole a $612,000 settlement from a minor child’s medical malpractice estate related to a permanent injury the child sustained at birth. The money was to be used for the child’s future medical care and living expenses, according to the information filed against him.

The child’s parents signed over a settlement check to Holesinger, who in 2008 took over the child’s guardianship with a promise to invest the money. Instead, he drained the proceeds, using the money to pay personal expenses and those related to his practice.

The (Munster) Times reported that the mother of the now 8-year-old child called Holesinger "a thief and a liar."

Holesinger also is accused of defrauding corporate clients. Authorities say the tally of his fraudulent activities amount to client losses of more than $2 million.

The federal plea agreement also requires Holesinger to plead guilty to charges in state court, where he faces five Class C felony counts of theft of property in excess of $100,000, and two counts as a Class D felony.

State court charges in Porter County allege Holesinger stole $817,962 from North Star Stone; $233,410 from RBF; $215,406 from ITF; and $371,736 from Maridor, with the earliest alleged thefts taking place in February 2011. All of the companies are located in Valparaiso and owned by Chris Andrews. Holesinger had been Andrews’ family attorney since the mid-1990s.

Holesinger was the business attorney for North Star Stone, responsible for calculating tax liability and filing returns, among other things. North Star would provide checks on a monthly basis for Holesinger to cover tax liabilities and attorney fees.

But North Star, a maker of manufactured stone and fireplaces, late in 2013 received a notice of levy for unpaid taxes and its business account was frozen. A forensic accountant discovered that for almost two years Holesinger had been cashing checks that North Star wrote to cover sales, payroll and corporate income taxes. Those taxes had gone unpaid, according to the probable cause affidavit.

With respect to the other companies Holesinger represented as a business attorney, he is accused of writing more than 68 unauthorized checks to himself as well as making unauthorized wire transfers.

The Associated Press reported Holesinger has settled with businesses that fell victim to his actions.
 
The federal case against Holesinger was the result of an investigation by the Internal Revenue Service Criminal Investigation Division, Social Security Administration Office of the Inspector General and was prosecuted by Assistant U.S. Attorney William T. Grimmer.    

 

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