Lawyer, Wife Accused of Grand Theft : Investigation: The couple, arrested in Arizona, allegedly stole more than $200,000 in settlements intended for clients at their former office in Orange.

A former Orange lawyer and his wife have been arrested in Arizona in connection with charges that they stole more than $200,000 in settlements intended for clients the lawyer represented, the district attorney’s office announced Friday.

Thomas K. Walker II and his wife, Sheila, were arrested Thursday in Mesa, Ariz., said Deputy Dist. Atty. Michael Lubinski. The couple are being held on $200,000 bail each and are awaiting extradition to Orange County, where Thomas Walker faces 20 charges of grand theft and money laundering, and his wife faces eight similar charges.

According to Lubinski and the Orange Police Department, the couple operated Thomas Walker & Associates at 2050 W. Chapman Ave. in Orange from May, 1989, to March, 1991. During that time, prosecutors alleged in a June 18 complaint filed in Superior Court, Thomas Walker settled at least 14 lawsuits without his clients’ knowledge, accepting settlement checks totaling more than $200,000.

“In numerous instances, the client’s signature was forged to the settlement checks,” Lubinski said.

Prosecutors also alleged that Sheila Walker falsely represented herself as a lawyer to potential clients. At least six times, Lubinski said, she established fees, gave legal advice and accepted retainers from prospective clients.

“In some instances, (she) would contact opposing counsel representing herself as an attorney and sign documents,” Lubinski said. It is illegal to practice law without a license.

Authorities were alerted to the alleged wrongdoings in March, 1991, when the Walkers abruptly closed shop and left the county without notifying their clients, Lubinski said.

“The clients called up the office and found his number disconnected. And when they went there, they discovered that his office was closed and everything was cleared out,” the prosecutor said.

Police obtained search warrants for records of the Walkers’ various bank accounts and discovered that “the fraudulently obtained settlement checks were deposited into Walker’s client trust accounts, business account and Sheila Walker’s personal checking account,” Lubinski said.

Police said the couple withdrew all funds from the accounts before leaving the county in March, 1991.

A spokeswoman with the State Bar of California said Thomas Walker surrendered his law license to the State Bar in 1991 while he was under investigation for unspecified pending charges.

Orange Police Detective James Carson traced the couple to Mesa, where Sheila Walker had turned in her California driver’s license when applying for one in Arizona. The couple also had family in that city, Carson said.

“Our investigation shows that they were running some kind of psychiatric counseling” service in Mesa, Carson said.