Victims of Pa. lawyer’s Ponzi scheme get record payout

From Penn Live, “More than four dozen victims of a Ponzi scheme perpetrated by late Hummelstown attorney Jeffrey Mottern will share in what is the largest payout ever made from a fund created by the state Supreme Court to help those cheated by dishonest lawyers.

Mottern took advantage of the trusted relationships he had developed with clients and family members of clients by encouraging them to allow him to pool their money – oftentimes, inheritances from estates he handled – with that of other clients’ money in a certificate of deposit that never existed.

He bolstered his clients’ confidence that the investment was legitimate by sending out monthly financial statements on his law office stationery showing the balance was growing. He allegedly used money from new investors to make monthly payments to clients who requested them.”

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