Where is the $450,000?
The wheels of justice have ground to a halt in Hattiesburg as a Pine Belt lawyer stands accused of repeatedly embezzling from clients. Meanwhile, the Mississippi Bar stands down even as another judge tries to throw him in jail.
A Forrest County grand jury indicted attorney Corey Ferraez in October 2021 for embezzlement by attorney, conspiracy to obtain signature with intent to defraud, and mail/wire fraud. Corey's twin brother Jace was also indicted for conspiracy to obtain signature with intent to defraud.
The story begins when Corey was a partner at the Holmes, McLelland, & Farraez law firm. As so many lawyers do, Corey and his firm divorced. The lawyer was "obligated to pay the firm, now McHard, McHard, Anderson, and Associates, PLLC 20% of all attorneys fees in cases included in the settlement agreement.
The list of cases included the representation of Shawn Vaughn. Corey represented Vaughn in a personal injury lawsuit as well as her Chapter 13 bankruptcy petition. Corey settled Vaughn's lawsuit for $650,000. The attorney's fees were $260,000. Thus Corey allegedly owe $52,000 to his former firm. However, the indictment claims he had other ideas.
Count I accuses Corey of filing a bogus lien against the bankruptcy estate on behalf of MMAA for $52,000 in March 2020. The bankruptcy court approved payment of the lien. Thus Corey managed to pay his former law firm by sticking his client with the bill, forcing her to pay $312,000 in attorney's fees.
The case has had a rather curious history. All twelfth circuit court judges recused themselves. The Mississippi Supreme Court appointed Special Circuit Judge Forrest Johnson to hear the case. The Court appointed then-Fourteenth District Attorney Dee Bates to prosecute the case. However, Bates retired and the current District Attorney, Brendan Adams, withdrew from the case in April 2024, claiming his caseload was too great.
Judge Johnson has not appointed a prosecutor in the case. However, the troubles of Corey Ferraez do not end with this case.
More Indictments
The Forrest County grand jury indicted Corey in October 2021 for four counts of embezzlement in October 2021.
Counts I & II: This count covers more shenanigans in the Shawn Vaughn case. The indictment states
on or about April 13, 2020, in Forrest County, Mississippi, he, while representing a legal client of HMF, Shawn Vaughn, in a personal injury civil lawsuit, and also in a Chapter 13 Petition for bankruptcy.... did receive a monetary check in the amount of $265,081.33 from the Bankruptcy Trustee, with $260,000 of said amount being the contractual attorney fees owed HMF in their representation of Shawn Vaughn in the personal injury case, entrusted to his care by virtue of his aforesaid office, position, and employment, did then and there willfully, unlawfully, and feloniously, with his intent then and there to cheat and defraud the aforesaid HMF, deposit aforesaid check into a bank account under his control, instead of a bank account belonging to HMF, thereby embezzling and converting to his own use
Count III: The indictment charges Corey embezzled $5,767 in attorney's fees paid by a client, Joseph Pecanty. Although the money was allegedly owed to his former law firm, Corey allegedly deposited the money into his own bank account instead of one belonging to the firm as he was supposed to under the settlement agreement.
Count IV: While working at his former law firm, HMF, Corey represented Marquita Estes in a personal injury lawsuit and bankruptcy petition. The bankruptcy trustee allegedly paid $10,000 out of the Estes estate to Corey for all fees owed to HMF. The indictment charges Corey with embezzling the money by depositing the money in his own bank account instead of passing it on to HMF.
The indictment has followed a similar path. The Mississippi Supreme Court appointed Special Circuit Judge Forrest Johnson to preside over the case after all twelfth circuit judges recused themselves. Although Fourteenth District Attorney Brendan Adams withdrew from the case in April 2024, Judge Johnson still has not appointed a replacement prosecutor. Thus the case and its sister prosecution have rotted on his docket for over a year.
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| Corey Ferraez, Esq. Courtesy: WLBT |
More Alleged Embezzlement?
Perry County Chancellor Sheila Smallwood ordered Corey's incarceration Friday after the wayward attorney failed to appear at a show cause hearing on June 16. Judge Smallwood wanted Corey Ferraez to show what happened to $450,000 in settlement proceeds in a wrongful death lawsuit.
The client testified Corey nor his staff returned phone calls. She was forced to borrow money against the settlement because of the repeated delays. The Chancellor ordered Corey to pay $450,000 by the close of business on June 18. The attorney filed a motion for reconsideration Thursday, claiming a medical emergency, but he provided no documentation of said emergency. A fed-up Chancellor issued a warrant for his arrest. However, Corey remains at large.
These cases are not Corey Ferraez's first brush with the law. He pleaded guilty in 2018 to voting outside his district after voting by absentee ballot in Lowndes County while living in Hattiesburg in 2015. However, he also ran for State Representative in 2017 in Hattiesburg even though he was voting in Lowndes County. His lawyer, Jace, accused the prosecution of engaging in a "political witch hunt."
Kingfish note: Corey Ferraez is still an active member of the Mississippi Bar as the Bar has taken no action against him. Thus the allegations of embezzlement continue to pile up while the Bar takes the day off.
What is interesting is the feds did not prosecute Corey for (allegedly) perpetuating a fraud upon the Court.
23 comments:
"Professional Courtesy". Protecting their own.
Oh I think I understand now:
“We’re thrilled to be opening our doors in Hattiesburg and bringing our unique approach to retail cannabis to Mississippi patients,” said Cory Ferraez, CEO of Ferrcannabis. “We believe that every patient deserves access to exceptional products, education, and a heightened dispensary experience, and we’re excited to make that a reality. Mississippi is my home, and I’m thrilled to be able to give back by providing a holistic alternative to all Mississippians.”
https://www.leader-call.com/news/hattiesburg-dispensary-opening-today/article_4374a376-dedd-11ed-9452-53b742937252.html
10:15 So that's what that smell is
Who is this kid, or who is he related to, that everyone in the world recuses themselves?
Sometimes the judges will recuse themselves if the defendant has practiced regularly before them.
I would not be so sure that the Feds won't go after him for Bankruptcy Fraud, Wire Fraud, and Conspiracy at some point. Regardless, it pisses me off that he has not been suspended by the MS Bar yet. I am forced to pay exorbitant annual dues to it if I want to remain eligible to practice law, yet they do nothing about this kind of crap! It is ridiculous. The MS Bar is nothing but window dressing. Adam Kilgore retired, and now his replacement, who was named without so much as a search for a new general counsel, is following right in his footsteps by failing to go after even the blatantly guilty. Where are you Ms. Scott?
Yes, it is a standing practice in many counties in Mississippi. Judge Johnson, however, should have appointed another prosecutor a long time ago. He is a senior status judge, so he must be off fishing somewhere.
This is what the lawyers want. You elect your own board members, appoint your own regulators, set your own policies. There are other states where the body that regulates lawyers is appointed by the state so there is a wall between lawyers and regulators.
And this is what needs to happen in Mississippi. I am an attorney, and this is an absolute embarrassment to the citizens of the state of Mississippi.
So the authorities and the Bar knew he was a crook in 2021 but let him continue to defraud people. That's disgusting.
This lawyer is being very foolish, as street justice will get him when he finally crosses the wrong client.
Mississippi Bar is notorious for protecting their own.
The Bar "taking a day off" is nothing new
Our justice system is a joke.
Cory is probably in Mexico by now.
The problem is the criminal case didn't move forward. Dee Bates had a track record of not pushing cases. The Pike County criminal docket has been digging itself out of hole for the last year or so. Judge Johnson needs to appoint a new prosecutor asap.
If the victim(s) didn't actually file a Bar complaint, then I don't think the Bar could have done anything without a conviction./guilty plea.
The Bar isn't protecting this guy. The Bar is lazy. This would require the Bar to actually work. The Bar commissioners and the Bar president (a Butler Snow lawyer who probably needs clients) should ask tough questions. Instead, they are talking about Sandestin and the Bar Convention. Keep pulling a paycheck, Deanne. We see you.
This loafer-bedecked soy boy needs some good ol South Mississippi country-fried comeuppance.
As noted on this platform before, we don't have a justice system. Never have. We have a legal system......
So you're saying Hinds County isn't the only county with "Blessings"......
The Bar is getting ready for their annual vacation in San Destin next month.
Disgusting. Thank you for this reporting.
Ok, our legal system is a joke.
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