Jackson Jambalaya

A Madison County grand jury indicted disbarred attorney Vann Leonard on four counts of embezzlement on February 1, 2012. Mr. Leonard was served with the indictment yesterday.

The indictment charges the disgraced attorney embezzled from Hitesh Desai, Kimberly Thomas, Edward Williamson, and Darrell Varner. Mr. Leonard was entrusted with money belonging to these clients and is accused of converting the money for his own use. It is not known how much money was allegedly embezzled by the former attorney. Mr. Leonard is charged under the embezzlement statute, 97-11-25, instead of fraud. Embezzlement carries a maximum sentence of twenty years in prison and/or a $5,000 fine. Fraud only carries a ten year sentence.

Vann Leonard pleaded guilty in federal court to several charges of mail and wire fraud in January. He currently awaits sentencing. Mr. Leonard has resided at the Rankin County jail since May 2011 after Chancery Judge Grant incarcerated him after finding him in contempt of court. Mr. Leonard was accused of embezzling from the Downing estate and did not return the money in question when ordered to so by Judge Grant. Mr. Leonard pleaded guilty a year ago to embezzling $327,000 from the bankruptcy estate of Shirley Douglas in the Northern District of Mississippi (Federal). Mr. Leonard remained free pending sentencing until jailed by Judge Grant. Mr. Leonard's federal sentence will apparently not being to run until he is released from the Rankin County jail. Mr. Leonard was indicted by a Rankin County grand jury for embezzlement in the Downing estate.

Vann Leonard appeared in federal court to plead guilty....again. The U.S. Attorney charged Mr. Leonard with several counts of fraud and wire fraud on December 16, 2011. The bill of information (posted below) alleges the Ridgeland attorney embezzled substantial sums of money belong to clients from his escrow account. U.S. Magistrate Linda Anderson issued a detention order (posted below) yesterday for Mr. Leonard, stating there was a "serious risk that the defendant will not appear".

Mr. Leonard faces a maximum sentence of 20 years and a fine of $250,000. The court continued the sentencing to a later date. The court also ordered Mr. Leonard to forfeit $440,000 as it was proceeds derived from the illegal activity. What is interesting is the detention order states Mr. Leonard "is currently detained in state custody on contempt charges, to be followed by a pending sentence of imprisonment from the Northern District of Mississippi."

Mr. Leonard has resided at the Rankin County jail since May 2011 after Chancery Judge Grant incarcerated him after finding him in contempt of court. Mr. Leonard was accused of embezzling from the Downing estate and did not return the money in question when ordered to so by Judge Grant. Mr. Leonard pleaded guilty a year ago to embezzling $327,000 from the bankruptcy estate of Shirley Douglas in the Northern District of Mississippi (Federal). Mr. Leonard remained free pending sentencing until jailed by Judge Grant. Mr. Leonard's federal sentence will apparently not being to run until he is released from the Rankin County jail. Mr. Leonard was indicted last month by a Rankin County grand jury for embezzlement in the Downing estate. Earlier post

Earlier posts about Vann Leonard case:
Richard Schwartz settles
Vann Leonard now in federal custody
Vann Leonard Update
Client accuses Vann Leonard of stealing $200,000 after conviction
Bar files suit to take over Leonard's practice. Finally
Richard Schwartz..but, but but, its not my fault.
$362,342 judgment awarded against Vann Leonard
Rankin County Justice served on Vann Leonard
Vann Leonard pleads guilty
Vann Leonard accused of stealing from another client
Trustee accuses Schwartz and Leonard of misappropriating hundreds of thousands of dollars

A grand jury indicted former attorney Vann Leonard today for one count of embezzlement in the Downing estate.

Mr. Leonard currently resides in the Rankin County jail, courtesy of Judge Grant. The Chancellor imprisoned Mr. Leonard after he found him in contempt of court. An earlier JJ post reported the alleged embezzlement:

"Local attorney Vann Leonard is currently incarcerated in the Rankin County jail after a judge found him in contempt of court on May 5, 2011. Mr. Leonard was the attorney for the executrix of the estate of Bobbie Downing. Mr. Downing owned several properties. One property was sold after his death and the court permitted $111,925 to be placed in Mr. Leonard's trust account to satisfy expenses. Heir Samuel Downing asked for an accounting of the estate and the monies placed with Mr. Leonard. Mr. Downing filed a motion October 8, 2010 to compel an accounting of the estate. Mr. Downing pointed out Bobbie Downing died in 2005 and the estate still had not been inventoried due to the failure of the executrix and Vann Leonard to provide any information about the funds and accounts in their possession. The parties agreed to an order on December 10 to provide the accounting within thirty days (File is posted below.).

Well, what do you know but here comes Vann Leonard on January 4, 2011 with the "dog ate my homework" excuse. Mr. Leonard you see, would have loved to provide the accounting of the funds. He really wanted to help the court. The only problem is "On December 26, 2010, he discovered that his computer would not "start up" correctly, nor would it allow him to retrieve files recently stored on said computer." He even provided an affidavit from a techie signed on December 31, 2010 stating such was the case. Mr. Leonard asked for an extension to January 25, 2011.

April 15 rolled around and there was still no accounting by Mr. Leonard of the money deposited in his trust account. Mr. Downing filed a petition for an emergency hearing and temporary restraining order on April 15, 2011 (page 14 of the linked file). Mr. Downing argued the money was "in jeapordy of being stolen" after he learned of Mr. Leonard's conviction for embezzlement in the Shirley Douglas bankruptcy case and the lawsuit accusing him of embezzling proceeds from a life insurance policey meant for a widow in Madison County (I can't imagine how they found out about any of these events.). Mr. Downing asked for an immediate accounting, a return of all monies by Mr. Leonard, and a freezing of the estate's assets.

Mr. Leonard was notified of the hearing by telephone, fax, and email. The court granted the request on April 15 and froze all trust/escrow accounts of Mr. Leonard. Mr. Downing then filed a motion for contempt against Mr. Leonard on April 21. The motion accused Mr. Leonard of failing to comply with the order and that at a hearing on April 18 removing him as counsel for the executrix, he "would not provide any information regarding the subject funds or his trust account." The executrix also stated Mr. Leonard had not returned to her any documents about the estate. Mr. Downing asked the court to imprison Mr. Leonard and freeze his assets.

The court found Mr. Leonard in contempt of court and ordered his immediate incarceration in the Rankin County jail. The court decreed he will not be released until he pays the $111,925 to the court, provides all documents provided to him by the estate, and pays Mr. Downing $1,500 for attorney's fees. The court also froze all of his assets. This correspondent confirmed yesterday afternoon in a visit to the jail Mr. Leonard is still imprisoned."

Mr. Leonard was convicted of one count of embezzlement in federal court earlier this year after he absconded with $327,000 of a client's settlement that was supposed to be deposited with the bankruptcy court. It will not surprise this correspondent if more indictments are forthcoming. The Mississippi Bar has revoked his license to practice law and seized his files.

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!!!