Attorney Faces Felony Counts, New Bar Probe

A Newport Beach attorney is scheduled to be arraigned today on felony charges that he forged documents to show that $144,000 in civil judgments and liens against his property had been paid.

Between December of 1989 and October of 1990, Richard L. Karch allegedly filed 10 forged documents with the Orange County recorder’s office indicating that the judgments had been paid when in fact they went unpaid, Deputy Dist. Atty. Craig McKinnon said.

After using the forged documents to make it appear as though there were no liens against his property, Karch sold his Laguna Beach home, McKinnon said. Typically, a home sale must be used to satisfy outstanding liens before the owner can profit, officials said.

The Orange County district attorney’s office has filed 10 felony charges against Karch, 46, who could face a maximum sentence of 10 years in prison if convicted. Karch is expected to surrender today in Municipal Court in Santa Ana.

Karch did not return telephone calls seeking comment.

The case was brought to the attention of authorities by Irvine attorney Michael Michel, who was owed more than $10,000 after handling a divorce proceeding for Karch, McKinnon said.

A bank owed a $50,000 loan was among the other debtors, according to records in the Orange County recorder’s office, where records show Karch has many creditors.

A review of civil court documents in Orange County Superior Court also reveals several cases involving Karch’s failure to pay debts.

Michel said he was trying to collect his money when he learned that Karch had sold the home and then discovered false documents stating the debt had been paid.

“I was really shocked when I saw my name forged on that document,” Michel said.

According to the State Bar, Karch has tried previously to forge documents and is currently facing disciplinary action.

In March, 1992, Karch was suspended from practicing law for 60 days after it was discovered that he mishandled two cases for clients.

The state Supreme Court, which oversees punishment of attorneys, also approved a two-year probation term for Karch and additionally ordered him to seek psychiatric counseling and pay a $1,500 judgment.

Karch is facing allegations that he did not pay the judgment and failed to complete therapy, according to Susan Scott, spokeswoman for the State Bar.

McKinnon said the State Bar, which has the power to disbar attorneys for misconduct, has begun investigating Karch in the wake of the new charges. Scott said she could not confirm or deny whether an investigation was underway.

The previous State Bar investigation found that a client paid Karch $1,750 for representation in a civil lawsuit but that Karch failed to return the client’s phone calls or perform any legal work. The client obtained a $1,500 judgment against Karch in January, 1990.

The investigation discovered that Karch forged and backdated letters to make it appear that he was in frequent contact with the client, Scott said.