PORTLAND, Ore. – A 24-count federal indictment unsealed today alleges that former Portland attorney Lori E. Deveny, 53, systematically robbed her clients, funneling their insurance settlements into a personal slush fund for luxury expenses. Deveny is facing charges of mail fraud, wire fraud, bank fraud, aggravated identity theft, money laundering, filing false tax returns, and failing to file tax returns.
The indictment details a scheme spanning from April 2011 to May 2019, where Deveny allegedly pilfered funds held in trust for her clients, specifically insurance proceeds they were rightfully owed. Prosecutors claim Deveny forged client signatures on settlement documents submitted to insurance companies, then diverted the money to her own accounts. She allegedly blamed delays in payouts on the insurance companies themselves, leaving her clients in the dark and empty-handed.
This wasn’t just a few dollars skimmed off the top. The indictment paints a picture of brazen extravagance. Deveny allegedly used the stolen funds to cover personal credit card bills, loan payments, and a series of expensive big game hunting trips to Africa – complete with the cost of taxidermy for her kills. Other expenses included lavish vacations, funding for her husband’s photography business, extensive home remodeling, and a penchant for expensive cigars.
The FBI and IRS Criminal Investigation worked the case, uncovering what they describe as a calculated effort to defraud vulnerable clients. Assistant U.S. Attorney Claire M. Fay is prosecuting the case, aiming to hold Deveny accountable for her alleged actions. The government alleges Deveny lived a lavish lifestyle built on the backs of those she was sworn to protect.
Deveny was released pending trial, and a jury trial is scheduled to begin July 16, 2019, before U.S. District Court Judge Michael W. Mosman. The courtroom will be the stage for the government to lay out its case, and for Deveny to mount a defense against the serious charges she faces. The stakes are high, with potentially significant prison time on the line.
It’s crucial to remember that an indictment is merely an accusation. Deveny is presumed innocent until proven guilty in a court of law. However, the allegations outlined in the indictment are damning, raising serious questions about the conduct of a legal professional entrusted with the financial well-being of her clients. Grimy Times will continue to follow this case and report on any developments.
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Key Facts
- State: Oregon
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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