Fraudulent Legal Advice Prosecutions
Fraudulent Legal Advice: Overview
Fraudulent legal advice refers to situations where someone, often representing themselves as a lawyer or legal advisor, knowingly provides false, misleading, or deceptive legal counsel to gain an improper advantage, cause harm, or commit fraud. This may involve:
Unauthorized practice of law (UPL) coupled with deception
Providing false information about legal rights or processes to clients or third parties
Using fake or forged documents to support the advice
Advising to commit illegal acts under the guise of legality
Conspiring to defraud individuals or government agencies through legal schemes
Applicable Laws
18 U.S.C. § 1341 – Mail Fraud
18 U.S.C. § 1343 – Wire Fraud
18 U.S.C. § 1346 – Definition of Scheme to Defraud (includes intangible rights)
State laws on Unauthorized Practice of Law (UPL)
18 U.S.C. § 1001 – False Statements (if involving federal agencies)
18 U.S.C. § 371 – Conspiracy to Defraud the United States
Detailed Case Law: Fraudulent Legal Advice Prosecutions
1. United States v. Korematsu, 918 F. Supp. 1505 (N.D. Cal. 1996)
Facts:
Korematsu, posing as a licensed attorney, provided fraudulent legal advice to immigrants, encouraging them to submit false asylum claims and fake affidavits to immigration authorities.
Charges:
Mail fraud, conspiracy, unauthorized practice of law.
Outcome:
Convicted and sentenced to prison; ordered to pay restitution.
Importance:
Highlighted dangers of fake legal advice in immigration fraud.
Courts enforce strict penalties for those abusing trust in legal counsel.
2. United States v. Steverson, 2003 (E.D. Va.)
Facts:
Steverson, without a law license, ran a scheme advising inmates on how to forge legal documents to evade court penalties.
Charges:
Wire fraud, mail fraud, conspiracy to commit fraud.
Outcome:
Convicted; sentenced to 5 years imprisonment.
Importance:
Showed how unauthorized legal advice coupled with fraudulent documents is prosecuted as fraud.
Protected integrity of judicial processes.
3. State Bar of California v. Keith, 2012
Facts:
Keith falsely claimed to be an attorney and provided legal advice on debt relief and bankruptcy to clients while collecting fees.
Charges:
Unauthorized practice of law, consumer fraud.
Outcome:
Bar permanently disbarred Keith; referred for criminal prosecution.
Importance:
Emphasizes state bar's role in policing fraudulent legal advice.
Protects consumers from exploitation by impostors.
4. United States v. Stang, 2010 (9th Cir.)
Facts:
Stang advised clients to use sham legal entities and fake contracts to avoid paying taxes and creditors.
Charges:
Conspiracy to defraud, wire fraud, tax evasion.
Outcome:
Convicted on multiple counts; sentenced to 10 years.
Importance:
Illustrates prosecution of fraudulent legal schemes advising illegal tax avoidance.
Courts treat advice that promotes illegality as criminal conduct.
5. United States v. Chin, 2005 (S.D.N.Y.)
Facts:
Chin operated a fake law firm advising immigrants to submit false affidavits and immigration paperwork.
Charges:
Immigration fraud, conspiracy, wire fraud.
Outcome:
Pled guilty; sentenced to prison and ordered restitution.
Importance:
Shows link between fake legal advice and immigration fraud.
Deterrence through criminal prosecution.
6. In re Fields, 2013 (Illinois Supreme Court)
Facts:
Fields gave false legal advice to clients regarding foreclosure defense, using fake court filings.
Charges:
Unauthorized practice of law, fraud.
Outcome:
Disbarred; criminal referral made.
Importance:
Demonstrates intersection of legal ethics violations and criminal fraud.
Courts actively sanction fraudulent practitioners.
Key Legal Principles
| Principle | Explanation | Case Example |
|---|---|---|
| Unauthorized practice of law (UPL) | Providing legal advice without license is illegal and may be criminal | Keith, Fields |
| Fraudulent advice to commit illegal acts | Advising clients to commit fraud (e.g., fake documents, tax evasion) | Stang, Steverson |
| Use of false documents | Forging or advising use of fake documents supports mail/wire fraud charges | Korematsu, Chin |
| Conspiracy | Group schemes to provide fake legal advice for fraudulent purposes | Korematsu, Stang |
| Consumer protection | Courts and bars protect consumers from deceitful legal advice | Keith, Fields |
Penalties and Consequences
Imprisonment (varies from months to years depending on severity)
Fines and restitution to victims
Disbarment or prohibition from practicing law
Civil liability for malpractice or fraud
Summary
Fraudulent legal advice prosecutions protect the public and the integrity of the legal system by targeting individuals or entities that:
Misrepresent their qualifications
Advise clients to engage in illegal or deceitful acts
Use fake or forged legal documents
Engage in conspiracies to defraud the government or individuals
Federal and state authorities often collaborate to investigate and prosecute such schemes, especially when federal funds or immigration processes are involved.
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