A Greensburg, Kentucky attorney has been charged with multiple counts of wire fraud as part of a scheme to obtain money from clients of his legal practice, by means of misappropriating funds, in order to pay personal expenses including gambling losses.
Danny P. Butler, 71, of Campbellsville, was charged by federal grand jury indictment on November 15, 2017. He made a first appearance in federal court today and is currently in federal custody.
According to the indictment, Butler was an attorney licensed with the Kentucky Bar Association who was authorized to practice law in the Commonwealth of Kentucky. He operated a legal practice in Greensburg, located in Green County, Kentucky, and provided clients with a broad range of legal services including probate, general civil, and government benefits.
Butler maintained seven bank accounts which he used for both personal and business purposes. From about August of 2009 through October of 2016, Butler used the bank accounts to routinely commingle client funds, and often to misappropriate funds from one client to distribute funds to other, unrelated clients. He also used client funds from the bank accounts to make cash withdrawals and pay personal expenses. In addition, he transferred client funds from business bank accounts to his personal accounts.
From 2009, through 2015, Butler incurred personal gambling losses, totaling $1,648,613 that he paid for, in large part, by the misappropriation of funds from eleven clients.
If convicted at trial, Butler could be sentenced to no more than 20 years in prison, fined $250,000, and be required to serve a three year period of supervised release.
Key Facts
- State: Kentucky
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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