Collection lawyer takes mail fraud plea, admits diverting $1.2M in payments from medical client
Disbarred collections attorney Alan Gallas on Wednesday pleaded guilty to mail fraud in federal court in Kansas City.
The 64-year-old founding partner of Gallas & Schultz admitted that he had diverted more than $1.2 million in payments intended for then-client St. Luke’s Health System to the law firm’s operating account between 2009 and 2015, according to the Kansas City Business Journal and the Kansas City Star. He also agreed to pay over $1.2 million in restitution.
His sentencing is scheduled for August.
It isn’t clear from news coverage how the fraud came to light. Gallas was disbarred last year, apparently by consent, in both Kansas and Missouri.
He is a former president of the Kansas City Metropolitan Bar Foundation and won awards from the Missouri Bar and Missouri Bar Foundation in 2011 and 2002, respectively.
The articles don’t include any comment from Gallas or his legal counsel.
