Law Firm’s Founding Partner Allegedly Gambled Away Client Funds At Nearby Casino – Above the Law

Say it with me now: The word “client” in the phrase “your client’s money” is not silent! You can’t just take what’s not yours, even if you intend on paying it back later. That fundamental fact of practice is drilled into your head as you study for the MPRE, but that doesn’t stop lawyers from failing when tested in real life. The Ledger recently covered a law firm partner who is being sued for allegedly misappropriating his client’s funds:

A civil lawsuit filed in Polk County accuses the owner of a law firm that recently closed its three offices of diverting nearly $1.8 million from a client’s trust fund to his personal account.

In the lawsuit, the surviving children of a Pennsylvania man say that Jason Penrod confessed to depleting the trust fund and using the money to gamble at the Seminole Hard Rock Casino in Tampa.

His firm, Elder Family Law, marketed itself as dedicated to assisting the elderly and their families with the challenges that accompany aging (LinkedIn). What Penrod failed to mention was that those challenges included money burning a hole in their pocket. Over a period of three months, Penrod allegedly wired money from one of his client’s accounts and spent it gambling at Seminole Hard Rock casino.

He has since taken steps to address the alleged abuse of his client’s trust. The Ledger also covered his decision to report himself to the Florida Bar for falsely using two of his clients funds and requested several penalties: disciplinary revocation and the loss of ability to practice law in Florida with the option of later applying for readmission.

Penrod has also tried to make his victims whole. He reportedly laid out an apology and several repayment options:

Penrod proposed a repayment plan based on a 10-year promissory note, with payments made quarterly. The letter mentions options for early payments: transferring ownership or equity of his Lake Wales office building; naming the plaintiffs as beneficiaries on a life-insurance policy; accessing his 401k funds; and sharing profits from his law firm, which grosses over $2 million annually, he wrote.

Per the complaint, Penrod shared that his compulsive gambling happened at a time while he was struggling with mental health issues. While that doesn’t excuse his behavior, there’s no doubt that there is a connection between gambling, depression, and anxiety. There is more to life than work. If you or someone you know is struggling with gambling addiction and is in need help, the National Problem Gambling Hotline has resources for you. There is also a lawyer assistance program in your state that may be able to help you. (Don’t be fooled by the name; these programs also provide services to law students). Please reach out if you need assistance.

Suit Alleges Owner Of Polk County Law Firm Stole $1.8M From Client’s Trust, Lost It Gambling [The Ledger]

Chris Williams became a social media manager and assistant editor for Above the Law in June 2021. Prior to joining the staff, he moonlighted as a minor Memelord™ in the Facebook group Law School Memes for Edgy T14s.  He endured Missouri long enough to graduate from Washington University in St. Louis School of Law. He is a former boatbuilder who cannot swim, a published author on critical race theory, philosophy, and humor, and has a love for cycling that occasionally annoys his peers. You can reach him by email at [email protected] and by tweet at @WritesForRent.