Chalmer E. “Chuck” Detling II, a former East Cobb attorney, has been indicted for allegedly obtaining fraudulent litigation advances from clients and keeping the money for himself.
According to the U.S. Attorney’s Office in Atlanta, Detling was indicted by a federal grand jury last Wednesday of seven counts of wire fraud and eight counts of aggressive identity theft. He was arraigned on Friday in federal magistrate court.
Federal prosecutors contend he used “the identities of 36 former clients without their knowledge or authorization in order to apply for and obtain 50 fraudulent litigation advances, totaling hundreds of thousands dollars.”
Detling operated the Detling Law Group at 3020 Roswell Road from 2012-2016. According to a 2015 advertorial in the EAST COBBER magazine, Detling also used the same office for the East Cobb Mediation service for divorce and elder care settlements.
Personal injury and workers’ compensation lawyers occasionally obtain litigation advances from clients for non-ligitation expenses while their cases are pending.
Atlanta U.S. Attorney Byung J. “BJay” Pak alleged that between October 2014 and April 2016, Detling obtained personal financial information from clients without their knowledge or permission to apply for the advances, collecting $383,000.
Prosecutors say instead of forwarding the money to clients, Detling picked up checks himself or had money for the advances wired instead to his law firm’s account.
When making the financing applications, prosecutors allege, Detling provided fake phone numbers and e-mail addresses. They also claim he submitted documents for the financing that allegedly included signatures by his clients whom he knew “had not actually executed the agreements.”
Prosectors say litigation financing entities didn’t require the clients to be present when submitting the applications or when the advances were made.
“Lawyers are supposed to assist their clients, not use their identities to commit fraud.” Pak said in a statement. “Detling allegedly violated his ethical and fiduciary duties by using his clients’ personal information to apply for litigation advances in their names.”
Detling, who was admitted to the state bar in 2004, surrendered his license in October 2016 and is no longer allowed to practice law in Georgia.
In 2012, Detling was fined by the U.S. Securities and Exchange Commission after admitting that he helped conceal a federal fraud indictment against a former client who was pursuing a municipal bond issue to purchase a casket company.
Detling also failed to disclose a $200,000 loan he made to the client, and was reprimanded by the State Bar of Georgia.
The FBI is continuing to investigate the wire fraud and identity theft case against Detling, along with the state bar, according to the U.S. Attorney’s Office.
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