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Greensburg, KY, attorney now faces federal charges

Lawyer already has state felony charges pending in LaRue County; he's now in Federal custody and and indicted in Federal Court facing multiple charges; alleged to have embezzled from clients to pay gambling losses exceeding $1.6 million
Note: - The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty

From U.S. Attorney's Office
U.S. Department of Justice, Western District of Kentucky

BOWLING GREEN, KY - (Tue 28 Nov 2017) - A Greensburg, KY, attorney was charged with multiple counts of wire fraud as part of a scheme to obtain money from clients of his legal practice, by means of misappropriating funds, in order to pay personal expenses including gambling losses announced United States Attorney Russell M. Coleman.

Danny P. Butler, 71, of Campbellsville, was charged by federal grand jury indictment on November 15, 2017 and made a first appearance in federal court today. Butler has state felony charges pending in LaRue County, KY. He is currently in federal custody.

According to the indictment, Butler was an attorney licensed with the Kentucky Bar Assoccation who was authorized to practice law in the Commonwealth of Kentucky. He operated a legal practice in Greensburg, located in Green County, Kentucky, and provided clients with a broad range of legal services including probate, general civil, and government benefits.

Butler maintained seven bank accounts which he used for both personal and business purposes. From about August of 2009 through October of 2016, Butler used the bank accounts to routinely commingle client funds, and often to misappropriate funds from one client to distribute funds to other, unrelated clients. He also used client funds from the bank accounts to make cash withdrawals and pay personal expenses. In addition, he transferred client funds from business bank accounts to his personal accounts.

From 2009, through 2015, Butler incurred personal gambling losses, totaling $1,648,613 that he paid for, in large part, by the misappropriation of funds from eleven clients. .

If convicted at trial, Butler could be sentenced to no more than 20 years in prison, fined $250,000, and be required to serve a three year period of supervised release.

This case is being prosecuted by Assistant United States Attorneys Bryan Calhoun and H. Joseph Pinto, III and is being investigated by the FBI and Kentucky State Police.

This story was posted on 2017-11-29 00:11:52
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