Houston Lawyer Moores $2.4M Client Scam

A Houston personal injury lawyer has been busted for scamming his clients out of millions of dollars in personal injury settlement funds.

Clyde J. Moore, a former attorney, admitted to conspiring to commit mail fraud and filing a false tax return, announced U.S. Attorney Nicholas Ganjei. Between 2012 and 2021, Moore and others at his firm, including Mark Broussard, misled clients about medical expenses and diverted money for personal use.

To carry out the fraud, Moore and others inflated medical costs and falsely told injured clients the firm had paid certain providers more than it actually had. As a result, clients received a reduced share of their settlements.

Moore funneled the skimmed funds from the firm’s trust account into personal expenses. He used the money to buy two Ferrari sports cars, pay private school tuition for his children and fund an investment account. Moore also shared stolen funds with Broussard and other members of the firm who helped carry out the scheme.

The losses from the fraud totaled approximately $2.4 million. As part of his plea, Moore will pay restitution to the IRS of over $500,000, representing taxes owed from years of false tax returns that intentionally understated his income.

Moore has agreed to compensate his clients for the fraud in an amount the court will determine at a later date. U.S. District Judge George C. Hanks will impose sentencing Sept. 8. At that time, Moore faces a maximum five-year possible prison term for the conspiracy and up to three years for tax fraud. Both convictions also carry a potential $250,000 fine.

Broussard had previously pleaded guilty to the same charges and is also pending sentencing. IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney Robert S. Johnson is prosecuting this case.