Disbarred Beverly Hills lawyer admits bilking client

Alan F. Broidy, a disbarred Beverly Hills lawyer, pleaded guilty on Monday to scheming to steal $512,526 from a client he represented in bankruptcy proceedings, announced U.S. Attorney Nicola T. Hanna of Los Angeles.

The Phoenix-based company, GRL-Mesa Investments LLC, retained Broidy for its Chapter 11 protection proceedings in Los Angeles in December 2015.

The bankruptcy was resolved in August 2016 and Broidy was directed by the court to hold $2,469,926 in a trust account to be distributed to the company's creditors.

Broidy instead used $512,526 to pay personal debts, according to a news release from Hanna.

Broidy admitted he had deposited $100,000 of the company's money into his personal bank account and later transferred $75,000 to the bank account in New York of one of his creditors.

In May 2014, Broidy was involved in a different bankruptcy, which was another reason for his disbarment in July 2019.

In that case, Broidy promised to pay $125,000 to a father and daughter that he represented as two different clients against the debtor as an inducement to settle their interests, according to the State Bar.

Broidy then promised to pay them $135,000 after not paying the original amount when it was due. Broidy failed to pay the amount, which had been raised to $150,000, after Broidy secured a $10,000 loan from one of the clients, according to the bar.

In the case involving the Arizona company, a sentencing hearing has been set for Nov. 30 before U.S. District Judge Dale S. Fischer. Broidy faces a maximum sentence of 10 years in federal prison.

-- Henrik Nilsson