BEVERLY HILLS— On Monday, August 10, a Beverly Hills attorney pleaded guilty to a federal criminal charge of scheming to steal over $500,000 from a client he represented in bankruptcy and using part of the money to pay off a $75,000 debt.
Alan F. Broidy, 65, pleaded guilty to one count of interstate transportation of stolen property.
According to his plea deal, Broidy was hired to represent GRL-Mesa Investments LLC, which is in the security brokers, dealers and flotation companies industry in Phoenix, Arizona. It filed for Chapter 11 protection in United States Bankruptcy Court in Los Angeles in December 2015.
The bankruptcy case was resolved and dismissed in August 2016. Broidy was to hold $2,469,926 in a client trust account, later to distribute it to Mesa’s creditors. However, Broidy did not return $512,526 that belonged to Mesa. He instead stole it and used it to pay for personal expenses, $75,000 of it was used to pay off a debt of his.
Broidy admitted to doing this without his client’s knowledge or consent on August 16, 2016.
In July 2019, the State Bar of California disbarred Broidy.
U.S. District Judge Dale S. Fischer has scheduled a November 30 sentencing hearing for Broidy. He faces up to 10 years in federal prison.