Bankruptcy Attorney Charged with Embezzling Funds

The Federal Bureau of Investigation (FBI) has charged Peter Ressler, a 68-year-old bankruptcy attorney from Woodbridge, Connecticut, with embezzling funds from his clients. Ressler, who has been an attorney with a bankruptcy practice based in New Haven, allegedly mishandled at least $771,409 in funds from two separate cases involving debtors who were his clients.

As alleged in the criminal complaint, Ressler was entrusted with $450,000 from one client, proceeds of a legal settlement, to be held by his firm for the benefit of the client and its creditors. However, most of the deposited funds were used by Ressler for other purposes than on behalf of the relevant client.

In another case, Ressler’s firm was left with approximately $321,409, which was also allegedly mishandled. The U.S. Bankruptcy Court for the District of Connecticut discovered the embezzlement and contacted the U.S. Attorney’s Office, leading to Ressler’s arrest.

Ressler appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $100,000 bond. The charge of embezzlement of debtor’s funds carries a maximum term of imprisonment of five years.

U.S. Attorney Deirdre M. Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser. Ressler resigned from the Connecticut bar in March 2016 and is cooperating with the investigation.

Ressler’s alleged embezzlement of debtor’s funds raises serious concerns about the accountability of attorneys who handle sensitive financial information. The FBI and the U.S. Attorney’s Office are working together to bring Ressler to justice and to ensure that the rights of his clients are protected.

The case is a stark reminder of the importance of monitoring and oversight in the legal profession. As the FBI continues its investigation, it is clear that Ressler’s actions were a betrayal of the public’s trust and a serious breach of professional ethics.