Virginia-based Markel Insurance Company assigned a $2 million negligence policy to probate Attorney Robert Graham. With Graham under indictment, the company desires to vacate the coverage and not pay out claims which number in the hundreds.
Graham lied on policy
According to U.S. Bankruptcy Court records, attorneys for the insurance company argue that Graham, 52, misled the company. Graham completed the policy’s application in December 2015. Graham stated on the document that he was unaware of any “liability claims” against him.
On December 2, 2016, Graham closed his business in Summerlin, Nevada, without notice.
He was accused of taking over $2 million from consumers over the course of three years. In their petition to the court, Markel’s attorneys said, “The indictment against Graham indicates that he started plundering client funds before December 10, 2015, when Graham submitted his signed application.”
Markel, which claims approximately 380 parties have filed malpractice suits, needs approval from a bankruptcy court to take steps against Graham in court to void the policy. A conference on the request is scheduled March 14, 2017. On February 10, 2017, attorneys for Graham filed papers showing almost $9 million in debt and barely $438,000 in assets — essentially outstanding charges the firm can no longer collect.
Graham donated to churches
The attorneys also admitted that Graham also contributed $2,500 to the Boy Scouts of America, a $15,000 donation to Colorado State University, and gifted Boys Town of Nevada in an amount undeterminable. Records from the grand jury and obtained by Las Vegas’ Review-Journal note Graham’s practice also contributed to the Mormon Church.
Other possible recipients are being sought. Documents presented in court showed Graham pouring a mean of $188,000 monthly from his client trust deposits into an open account to manage his law firm and pay his personal bills.
'Personal Piggy Bank'
A financial expert with the District Attorney’s office, Tim Schultz, testified to the grand jury that he considered Graham handled his clients’ funds as a “personal piggy bank.”
Prosecutors told the court that Graham might have stolen over $15 million in client money.
They anticipate further charges will be filed. In the meantime, Graham is in the Clark County Detention Center on $5 million bail. His lawyer, Bryan Cox, filed a motion for bail reduction, claiming that Graham is not a flight risk. A conference on the petition is set for February 28.
