MICHAEL MCNAMARA

Michael McNamara is known as a top trial lawyer in all types of cases. He is a fellow of both the prestigious American College of Trial Lawyers and the invitation-only International Academy of Trial Lawyers. He is also a certified specialist in the field of professional responsibility and is frequently sought out by leading law firms to handle their most sensitive professional liability matters.

In recent years, McNamara has seen a growing trend in law firms being sued because they represented a client that engaged in alleged criminal activities. He suspects these lawsuits are on the rise because receivers and trustees view law firms as “deep pockets” in situations where investors have lost money. These cases often involve “aiding and abetting” theories of liability -- asserting that the lawyer knew, or should’ve known, about the client’s alleged bad conduct, McNamara said.

However, he said lawyers and their firms can also be victims of fraudsters, getting swept up in the lawsuits that follow in the wake of Ponzi schemes and other scams.

“If you’re a fraudster, and you want to employ some sort of fraudulent scheme, oftentimes you hire well-respected lawyers and accountants as a way to show legitimacy,” McNamara said. “Of course, they’re not going to tell the lawyers and accountants that they’re doing something wrong, that the business model isn’t true. They deceive the lawyers, and the lawyers become victims as well.”

McNamara is currently leading the defense of three different large law firms in various cases stemming from the fallout of Ponzi schemes.

In one case, he represents Davis Graham & Stubbs LLP and one of its partners in a lawsuit filed by the Trustee of the Woodbridge Liquidation Trust. Goldberg v. Halloran & Sage LLP et al., 19STCV42900 (L.A. Sup. Ct, filed Dec. 2, 2019).The lawsuit alleges that Davis Graham & Stubbs aided and abetted a Ponzi scheme perpetrated by the Woodbridge Group of Companies, a now-bankrupt real estate investment enterprise. The $1.3 billion scheme affected 9,000 investors.

McNamara filed an anti-SLAPP motion, and the Court granted the motion in large part. It agreed that much of Davis Graham & Stubbs’ advice constituted protected petitioning activity in connection with ongoing state securities enforcement proceedings and was accordingly subject to the litigation privilege. That ruling is now on appeal, which has been fully briefed, with oral arguments expected in the Court of Appeal in May.

In addition to his busy practice, McNamara has an active pro bono practice and has held influential leadership roles within the legal community. Many of these roles involve promoting professionalism, civility and ethics in the legal arena.

“I’ve always been really moved by the fact that law is a profession, not just a trade or business,” he said. “As professionals, we have ethics and canons of civility. It’s rewarding to be in a profession where truth and honesty matter, ethics matter. It’s not just trying to make the mighty dollar; it’s about doing the right thing.”

– Jennifer Chung Klam