A Tustin attorney accused of misappropriating $282 million from as many as 60,000 clients is likely headed for disbarment, the State Bar of California announced Tuesday, July 16.
Daniel Stephen March, an attorney since 1982, has been charged with 27 ethics violations in two separate complaints alleging mass misappropriation, the State Bar said in a statement.
March, 68, filed a motion in May with the State Bar Court of California stating he would not dispute the charges.
A default order against March requested by the State Bar’s Office of Trial Counsel was granted by the State Bar Court on July 1. The State Bar Court will recommend March’s disbarment to the California Supreme Court unless he files a timely response to the default order.
“The level of March’s misconduct and misappropriation of client funds is stunning,” said George Cardona, the State Bar’s chief trial counsel. “March completely betrayed his responsibilities as a lawyer and his sworn oath of service to his clients and to the profession. Given the scope of his offenses, the just outcome in this case is disbarment.”
March did not respond to requests for comment Tuesday.
From November 2019 to March 2023, March served as chief executive officer, treasurer, sole board member, shareholder and managing partner of Litigation Practice Group, according to State Bar Court records.
LPG’s website states that during March’s “long distinguished career” he has represented clients ranging from politicians to police chiefs and movie stars.
LPG entered into fee agreements with clients promising to provide debt relief services and refunds if their debts were not invalidated. Each agreement charged a flat fee to be paid in monthly installments.
March is accused of misappropriating $78 million to $282 million in advance fees paid by 40,000 to 60,000 clients.
March failed to maintain any of the fees in a trust account, according to a State Bar complaint. “Advanced fees were either not deposited in a trust account, or were held in trust for approximately one day,” the complaint states.
March filed for bankruptcy on March 20, 2023, and declared under oath that LPG had taken in $282 million in revenue and had cash assets of $4,500.
From March 2020 to September 2021, March made 20 separate bank deposits totaling more than $78.8 million into a client trust account and, in each instance, withdrew the funds before the end of the month, the State Bar said.
The complaint does not disclose how the funds allegedly misappropriated by March were allegedly spent.
The Office of Chief Trial Counsel charged March with several offenses, including not maintaining funds as required in a client trust account, commingling funds, and committing acts of moral turpitude, dishonesty, and corruption.
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Additionally, March was charged with employing disbarred Newport Beach attorney Tony Diab from November 2019 through March 2023 to manage funds at LPG in violation of professional conduct rules and failing to disburse nearly $1.4 million of settlement funds to a client.
A January 2023 federal lawsuit filed by an investor against Litigation Practice Group claimed the company was controlled by Diab and merely used March as a “figurehead.”
“March has permitted Diab to use his name and bar license as Diab deems fit, including signing March’s signature on contracts on behalf of LPG, (and) communicating with third parties,” the suit alleged.
