- Associated Press - Thursday, February 12, 2015

WATERLOO, Iowa (AP) - A Waterloo law firm appears set to close, months after its former president killed himself before allegations surfaced that he had stolen millions of dollars from clients.

Most of Gallagher, Langlas and Gallagher’s lawyers have found work elsewhere since the allegations arose that David Alan Roth stole or mishandled client money, said Greg Lederer, a Cedar Rapids attorney representing the firm. The allegations came after Roth killed himself in September.

“I think it’s fair to say that at some point in the future, there will be no lawyers practicing at the law firm,” Lederer tells the Waterloo-Cedar Falls Courier (https://bit.ly/1CZJFkh ).

According to court records, the firm was unaware of the thefts, which included stealing settlement proceeds and insurance payouts and mismanaging investments. Still, the firm faces multiple malpractice and fraud lawsuits claiming Roth wasn’t properly supervised, and claims worth millions of dollars have been filed against Roth’s estate.

Claims total at least $7.8 million, the highest of which is $1.9 million for a woman who had given Roth money to invest. Some claims don’t list a dollar amount.

In the midst of these malpractice lawsuits and estate claims, court records show the firm’s insurance carrier is considering revoking its coverage, and a local credit union is seeking more than $334,000 in restitution for two business loans the firm took out in 2013. The loans were due in full in June and October.

Lederer said the firm remains open until all legal claims and litigation reach a conclusion.

___

Information from: Waterloo-Cedar Falls Courier, https://www.wcfcourier.com

LOAD COMMENTS ()

 

Click to Read More

Click to Hide