Ex-Lawyer Pleads Guilty to Embezzling $225,000

A former Chatsworth attorney accused of swindling dozens of clients out of at least $225,000 pleaded guilty Tuesday to seven counts of grand theft and will be sentenced to 40 months in prison.

Other less serious charges against Richard F. Murkey, 44, such as forgery and practicing law while suspended, will be dropped by prosecutors as part of a plea agreement announced in Van Nuys Municipal Court.

Since the California State Bar began investigating Murkey in August, 1989, 53 of his former clients have filed claims charging him with embezzling money from insurance payments and court settlements.

State Bar spokeswoman Susan Scott said the organization’s security fund, which insures clients against theft by their attorneys, has paid more than $125,000 to Murkey’s former clients in 24 of the claims. The remaining claims are in excess of $100,000, officials said.

A personal injury lawyer who handled mostly automobile accident cases, Murkey voluntarily resigned from the State Bar last year during disbarment proceedings, Scott said.

Deputy Dist. Atty. James A. Baker said the charges Murkey pleaded guilty to Tuesday involve seven former clients from whom Murkey embezzled more than $50,000. In those cases, prosecutors said Murkey settled cases without the approval or knowledge of his clients, then forged their signatures on checks to get the funds.

In one instance, Murkey allegedly pressed an accident victim to sign a retainer agreement as the victim lay disabled in a hospital bed with a brain concussion. In another case, according to court records, Murkey settled a lawsuit for $12,000, but did not turn any of the money over to his client, who faced $170,000 in medical bills.

Prosecutors said Murkey used the embezzled money to make real estate investments and personal purchases.

“As far as I can tell, it was just high living,” Baker said.

After Tuesday’s hearing, Murkey declined comment. His attorney, Alan Baum, said the thefts from clients occurred when Murkey was under severe stress from personal problems, including a divorce and custody battle over his son.

“It was a very traumatic situation,” Baum said. “Things got out of hand.”

Murkey remains free without bail until June 20, when he will be formally sentenced by Judge Michael J. Farrell.