HUNTINGTON, W.Va. — A Huntington man pleaded guilty to bank fraud Monday admitting that he embezzled money from a law firm he worked at for approximately 30 years.
Todd M. Chapman, 57, admitted that he embezzled at least $602,000 dollars from a Huntington law firm while he worked as an office manager. The embezzlement included funds from client trust accounts and proceeds from a Paycheck Protection Plan loan authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
Chapman during his tenure with the law firm was authorized to write checks using the firm’s bank accounts for legitimate business expenses. However, from approximately 2016 through approximately 2022, he wrote unauthorized checks using the law firm’s accounts and client trust accounts to himself.
He embezzled $409,000 dollars from the estates of three deceased firm clients, $100,000 dollars from a client who was supposed to receive when they turned 18, and over $15,000 dollars from an initial $20,000 settlement deposit for another minor client who suffered an injury as an infant.
He also embezzled $13,686.21 from a $20,375 PPP loan that was supposed to be used by the firm to provide emergency financial aid during the COVID-19 pandemic.
According to court documents, as part of the plea agreement Chapman admitted that the carried out this scheme by using the trust he gained while he worked there that allowed him to gain complete and exclusive control of its day-to-day finances.
Chapman was able to funnel money he stole through the firm’s operating accounts, forge signatures on checks, create false documents, made false statements under oath in civil lawsuits by former clients, and even made false claims to federal law enforcement agents who were investigating the loss of client funds at the firm to cover up the scheme.
He admitted that he used the funds for his personal enjoyment and lifestyle.
Chapman is set to be sentenced on December 1. He faces a maximum of 30 years in prison, up to five years of supervised release, and a $250,000 fine. He also owes the money back in restitution.