Ousted Linquist Partner Could Face Criminal Charges in Alleged Client Theft of Up to $2M
A Minneapolis lawyer fired from Linquist & Vennum last month already faces ethics charges accusing him of stealing more than $1 million from clients and a lawsuit alleging he used stolen funds to renovate his mansion.
But Michael Margulies is also likely to face federal criminal charges accusing him of stealing as much as $2 million from half a dozen clients, the Minneapolis Star-Tribune reports. The newspaper relies on court documents and information from his lawyer and his former firm.
Linquist & Vennum managing partner Daryle Uphoff told the newspaper that lawyers at the firm became suspicious after a client alerted him that Margulies, a real estate partner, had double-billed for services. Then the firm discovered that Margulies, who had worked at Linquist for 26 years, had also submitted false expense reports for dinners.
“We said, ‘Wait a minute, we’ve got to really dig here,’ ” Uphoff told the Star-Tribune.
Margulies will agree to disbarment and will likely face federal charges, according to his ethics lawyer, Eric Cooperstein, who was interviewed by the newspaper.
The Pioneer Press has more information on the lawsuit filed by CMB Minnetonka. The suit claims Margulies “made numerous illicit withdrawals” from CMB’s bank account and line of credit totaling at least $1.5 million and spent the money on a home now on the market for $1.75 million. Above the Law noted the report and posted photos of the mansion.
Margulies’ ex-wife owns the house and says no “ill-begotten funds” were used there, the Star-Tribune reports.
