A McCracken County attorney is facing theft charges after allegations that he failed to turn settlement payments over to clients.
According to a McCracken County Sheriff’s Department news release, James Grant King, 43, was arrested on Thursday on two charges of theft by failure to make required disposition of property of $10,000 or more. Police added a third count on Friday, after another alleged victim came forward.
Initial charges stem from an investigation that began in February, after sheriff’s deputies received a complaint that King had failed to pay settlement money collected on behalf of clients a year prior. Police statements say King was hired in February 2016 to represent a couple involved in an accident. Within six weeks of his hire, King allegedly settled both claims, collecting $93,000. Police say King did not consult with clients prior to the settlement, collecting funds without an approved settlement amount and without their knowledge. Police allege King further did not notify clients that he had concluded the case, nor did he turn over funds to those clients.
Clients only discovered King had settled with Nationwide Insurance after personal investigation into why their cases had not been settled, according to the statement. Clients reportedly confronted King, who allegedly told them paperwork had been misplaced and funds remained in escrow.
Police investigation revealed deposits had been made into King’s escrow account, but had been removed by the end of April 2016. Investigators say about half of the money had gone to King personally, while the remaining portion had been used for payroll, personal expenses and what police believe may be other clients to whom he owed money.
Detectives were unable to locate records where clients in this case received any payment or had medical bills associated with the accident paid.
Friday’s charges came after another alleged victim stepped forward upon learning of King’s arrest. According to police statements, the second victim was involved in an accident April 7, 2015, and hired King to negotiate a settlement with his insurance company. Police say after not receiving an update on the case for more than a year, the victim on Sept. 28, 2016, contacted the insurance company and was told the case had been settled the previous May.
Investigators say the case settled for $17,500, however the victim received no payment. Detectives found a check for $17,500 issued to the victim and King Law on May 6, 2016, was deposited into King’s escrow account, according to police statements; however, police say King removed most of the money or spent it on personal expenses.
The investigation is ongoing, and police believe other victims remain.