Jackson Jambalaya

The insurance company for attorney Richard Schwartz settled a lawsuit filed in U.S. Bankruptcy Court by Shirley Douglas and the trustee. Ms. Douglas sued Mr.Schwartz and former attorney Vann Leonard after Mr. Leonard embezzled $327,000 of a $500,000 settlement Ms. Douglas received from damages suffered in an automobile accident. Mr. Schwartz's insurance company will pay $265,000 to the court.

The trustee accused local attorneys Richard Schwartz and Vann Leonard of "misappropriating" a settlement of $500,000 in a complaint filed in bankruptcy court. Shirley Douglas was injured in an auto accident in June 2007. She retained Schwartz & Associates to recover damages from the other driver. Ms. Douglas filed a chapter 13 bankruptcy petition in July 2009. Schwartz obtained a $500,000 settlement for Ms. Douglas. She signed a standard contingency-fee agreement giving Schwartz a third of her settlement for his fee. Schwartz then hired attorney Vann Leonard to help obtain court approval of the settlement. The court approved the settlement and allowed Schwartz to collect $172,414 in attorney's fees. Mr. Leonard never tendered the remaining $327,585 to the court or Ms. Douglas. Instead of receiving her money, Ms. Douglas was forced to suffer the humiliation and expense of having her wages garnished to pay her creditors. The court lifted the garnishment order earlier this year. Earlier post

Mr. Leonard pleaded guilty to one count of embezzlement in federal court in February. Mr. Leonard currently resides in the Rankin County Jail courtesy of a contempt of court finding in Chancellor Grant's courtroom after he did not return to the court $110,000 taken from the Downing estate. Mr. Leonard has been disbarred by the Mississippi Bar.

The settlement was filed on November 21, 2011. Fireman's Fund Insurance Company, the insurer for Mr. Schwartz, will pay $265,000 to the trustee. The trustee will pay $30,000 to attorney Selene Maddox for representing the trustee. The remainder of the funds will be used to pay Ms. Douglas's creditors. Any remaining funds are paid to Ms. Douglas and her attorney, Philip Thomas. Ms. Schwartz received $132,457 in fees.

Patsy Brumfield reports in the Northeast Mississippi Daily Journal the Feds took custody of Vann Leonard after he pleaded guilty to one count of embezzlement:

"Leonard agreed to avoid a trial by pleading guilty to one count that he embezzled money from a bankruptcy estate he administered.

He faces up to five years in prison and a $250,000, as well as possible restitution.

Friday, Northern Mississippi U.S. District Judge Sharion Aycock unsealed the case after Leonard's sentence hearing was not held Thursday, as scheduled.

Since last Tuesday, he's been in federal custody in the Lafayette County Detention Center.

U.S. marshals moved him from the Rankin County Jail, where he was held after serious legal problems of a similar nature.

Criminal accusations against Leonard arose in the Southern District, where a client alleged he stole $327,585 from an accident settlement after she declared bankruptcy.

The criminal and bankrutpcy cases were transferred to North Mississippi.

Leonard also was accused in a Madison County circuit court case of stealing the proceeds from a life insurance policy that should have gone to a doctor's widow and in a Rankin County estate case over $111,000 he's accused of taking.

The Mississippi Bar took possession of all his client files this past summer.

On Sept. 12, Leonard's irrevocable resignation from the Bar was accepted by the state Supreme Court." Article

Not a bad story and a hell of a lot more than was published by the Jackson media, which was ZERO!!!