Feds allege Philadelphia lawyer stole more than $1 million from clients & his firm over 4-year period

August 21, 2010|By MICHAEL HINKELMAN, hinkelm@phillynews.com 215-854-2656

For almost four years, a Center City lawyer allegedly duped clients, telling them that money he won for them in civil settlements was socked away in his law firm's escrow account.

But a federal grand jury alleged yesterday that the lawyer, Jeffrey Abramowitz, actually stole more than $1 million from them and his former law firm.

Abramowitz, 47, of Plymouth Meeting, who was arrested Thursday and taken into custody, was arraigned by a federal magistrate yesterday and pleaded not guilty to five counts of mail fraud and two counts of wire fraud.

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He was released on $50,000 unsecured bond. Kevin J. Kotch, Abramowitz's attorney, declined comment after the arraignment.

Abramowitz was formerly a partner and vice president of the now-defunct law firm Klevan & Abramowitz, P.C. (Authorities said nobody else at the firm was implicated in any wrongdoing.)

Mitchell Klevan, Abramowitz's former law partner, said yesterday: "[Abramowitz] had been my colleague for a long time. I felt toward him like a brother. The betrayal I feel is so deep. It's a great hurt."

Prosecutors said that from March 2005 until December 2008 Abramowitz embezzled the funds and deposited them into his personal bank accounts.

In some cases he even endorsed checks issued to clients by forging their signatures and depositing funds into his accounts, the indictment said.

Abramowitz allegedly negotiated legal claims and executed settlement agreements in civil lawsuits unbeknown to his firm's clients, lied to them about settlement amounts and created bogus documents to perpetuate his lies.

Abramowitz specialized in personal injury, medical malpractice and product-liability cases, according to the legal directory Martindale-Hubbell.

The indictment said he spent the funds himself or diverted them to a favored client, identified in the indictment only as "D.P.," and her family.

The feds are also seeking forfeiture of almost $1.1 million and a 2008 BMW sedan.

Abramowitz's law license was suspended in 2009 by both the Pennsylvania Supreme Court and federal district court here, and in March of this year by federal district court in New Jersey.

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