William Reid Penuel, Embezzlement, Florida 2023

A former Atlantic Beach attorney has been sentenced to federal prison for embezzling funds from a bankruptcy estate. William Reid Penuel, 38, was sentenced to six months in federal prison, followed by three years of supervised release, by Senior United States District Judge Henry Lee Adams, Jr.

The court also ordered Penuel to serve six months of home detention, participate in ongoing drug testing and treatment, and pay $151,239 in restitution. Penuel pleaded guilty to embezzlement on March 15, 2016, and was subsequently disbarred from practicing law by the Florida Bar in April 2016.

Penuel was serving as the Chapter 7 Trustee in a pending business bankruptcy case in Tallahassee when he embezzled estate funds held in a bank account in Duval County. Between March 2015 and July 2015, Penuel diverted estate funds, totaling approximately $151,239, to his own use. The scheme involved approximately 20 withdrawals from the estate bank account.

The Federal Bureau of Investigation – Jacksonville Office investigated the case, which was prosecuted by Assistant United States Attorney Dale Campion. The bankruptcy court had authorized Penuel to use the funds to pay certain expenses, but instead, he made unauthorized withdrawals and deposited the money into his own accounts.

Penuel’s actions as a licensed attorney were a breach of trust and a violation of the public’s faith in the legal system. His sentence serves as a reminder that those who engage in such activities will be held accountable for their actions.

The case highlights the importance of transparency and accountability in the handling of bankruptcy estates. The court’s decision sends a strong message that embezzlement will not be tolerated and that those who engage in such behavior will face serious consequences.

In addition to his prison sentence, Penuel must also pay restitution to the victims of his embezzlement scheme. This is a significant step towards making things right and restoring the public’s trust in the legal system.

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