Lawyer Is Found Guilty of Stealing From Clients

A prominent Los Angeles attorney was convicted Thursday of stealing $2.5 million from clients he represented in personal injury lawsuits.

James Herman Davis, 70, was convicted of 12 counts of grand theft by a Los Angeles Superior Court jury.

Davis, who faces up to 15 years in prison, was taken into custody after the jury’s verdicts were read. The Los Feliz resident is scheduled to be sentenced April 30.

Last month, charges were dropped against Davis’ wife, Gilda, who was accused of helping her husband steal the money.

The district attorney’s office began investigating Davis three years ago after more than three dozen of his clients complained to the State Bar. Last year, Davis forfeited his California law license.

Deputy Dist. Atty. William Penzin said Davis, who mostly handled personal injury lawsuits, would enter into a retainer agreement with a client, file a lawsuit and negotiate a settlement.

Once he got a settlement, Penzin said, Davis would take a portion of it and misrepresent the amount of the settlement to his client.

Davis would also persuade his clients to invest their settlements in an annuity account so they could receive monthly payments, rather than a lump sum, Penzin said. The attorney would then place the clients’ money into Pacific Intermediaries, an investment company owned and operated by Davis, Penzin said. The clients began to complain in 1996 when they stopped receiving checks.