Douglas Arntsen has finally admitted to his crimes.
Last September, Arntsen resigned from his position as an associate at Crowell & Moring at about the same time that one of the firm’s clients noticed money was missing from an escrow account that he maintained. Arntsen fled to Hong Kong two days later. Authorities arrested him upon his arrival in Asia for purportedly embezzling millions of dollars from clients and using the money for lavish meals, expensive sporting event tickets and strip clubs. Federal authorities have held him without bail since January.
Yesterday, Arntsen pleaded guilty to three counts of grand larceny in the first degree and one count of scheme to defraud in the first degree. A Manhattan judge ordered him to make $10.8 million in restitution to two clients in addition to serving his prison sentence. Arntsen could face between five and 15 years behind bars. He is scheduled to be sentenced on Oct. 17.
Read Thomson Reuters and the Wall Street Journal’s Law Blog for more information.
For more InsideCounsel stories about Douglas Arntsen, read:
Crowell & Moring settles Arntsen embezzlement suits
Prominent white-collar defense lawyer to represent Douglas Arntsen
Arntsen ordered held without bail
Crowell & Moring reimburses client, releases statement on fugitive associate
Crowell & Moring may have known about lawyer’s misdeeds months ago
Crowell & Moring faces third lawsuit tied to former employee’s theft
