IBJNews

Avalanche of lawsuits flows from Conour fraud

Back to TopCommentsE-mailPrintBookmark and Share

William Conour’s multi-million-dollar fraud case has produced an avalanche of state and federal lawsuits taking aim at a cavalcade of local attorneys, including some who used to work with the once-prominent, personal-injury attorney.

In federal court, a filing in August claimed Conour and his former law firm defaulted on a line of credit, owing more than $600,000. Separately, Conour’s former legal malpractice carrier has sued to void coverage for his acts, claiming they were intentional and therefore outside the scope of the policy.

Claims in state court name former Conour partners, including at least one who helped the federal government press the wire-fraud case against Conour.

The government accused Conour of defrauding at least 25 clients of more than $4.5 million. He pleaded guilty in July.

Conour is scheduled to be sentenced Oct. 17. The civil cases arising as a result of his criminal conduct may determine the liability of his former associates, help define the pool of money available for victims, and resolve who gets priority for restitution—Conour’s defrauded clients or his creditors.

“I have never seen anything like this massive tragedy in nearly 40 years dealing with problems caused by Indiana lawyers,” Indianapolis attorney Jon Pactor said. Pactor has filed suits in Marion Superior Court naming two former Conour partners in litigation brought by former Conour clients.

Pactor has named Thomas Doehrman, Conour’s former colleague at Conour Doehrman Attorneys at Law, in a case filed on behalf of Bradley Whiteman, a Brownsburg ironworker injured on the job in 1995. The suit claims Whiteman was deprived of his settlement that Conour Doehrman negotiated in 1999.

“Conour Doehrman negligently constructed the settlement in such a way that the Whitemans will not receive the full amount of their settlement,” the suit alleges.

Doehrman’s attorney, Philip Kalamaros of South Bend, said that he couldn’t comment on pending litigation. Doehrman argues in court filings that he was never in partnership with Conour.

Doehrman “admits his corporation shared office space with William Conour from approximately 1988-2003,” the response to the suit says, but “Conour Doehrman was never in business.”

The response further “denies that the ‘law firm’ settled the case ... denies ‘Conour Doehrman’ did anything at all and denies that this defendant was negligent in any way.”

Indianapolis attorney James R. Fisher, however, argues in a separate suit that Doehrman is jointly and severally liable for more than $800,000 in unpaid installments from a structured settlement.

“With law firms, as a general case, if you hold yourself out to the world as a law firm and a partnership, as far as liability goes, you are, regardless of the agreement you have inside the office," Fisher said.

Conour Doehrman appeared to be a partnership, presented itself as a partnership and advertised as a partnership. And it did nothing to inform consumers that it wasn’t a partnership, Fisher said.

Fisher in July sued Conour and Doehrman in Marion Superior Court on behalf of Davis Beals Sr., Loretta Beals and Kristen Beals. The Bealses were injured in a crash when their vehicle was hit by a tractor-trailer. Conour Doehrman negotiated settlements. The suit accuses Doehrman of legal malpractice, conversion, securities fraud and negligence.

Daughter Kristen was left permanently disabled, with her parents serving as adult guardians, the suit says. Payments from her structured settlement stopped coming in January, depriving Kristen of monthly payments of $1,677 through the year 2047. Her parents also were deprived of 82 additional monthly payments from a structured settlement, the suit claims.

Also named in the suit is an entity called Structured Settlement Investment Services Ltd. The suit alleges Conour Doehrman used the entity as a shell to facilitate annual fund transfers to meet obligations of structured settlements, including those of the Bealses.

The entity “is believed to be a fictitious entity which was (doing business as) the Conour-Doehrman law firm,” Fisher alleges in the suit.

Pactor also has filed a suit naming former Conour firm attorney Timothy Devereux, now a partner at Ladendorf & Ladendorf.

The suit alleges that after Devereux left the Conour Devereux Hammond firm in December 2011, Devereux breached his duty by failing to inform his clients—who were being represented by co-counsel Conour—that he knew Conour was dishonest. Around the time he left the firm and afterward, Devereux was talking with investigators about Conour.

The plaintiff, Jim Love, had been injured in a construction accident in 2008 and retained a Conour firm that became Conour Devereux Hammond. The suit alleges that Devereux should have informed the Loves about Conour’s dishonesty as Devereux was ceasing to be their attorney. A few months later, Conour settled Love’s case without Love’s knowledge and stole the $120,000 settlement, according to Pactor.

“My clients have alleged that Mr. Devereux should have informed them sufficiently about Mr. Conour so that they could have made an informed decision whether to stay with him,” Pactor said.

Devereux and his attorney in the matter, David Kasper, said they couldn’t comment about the case. Court filings in response to the complaint deny Devereux had a duty to inform the Loves when he learned of an FBI investigation.

Another suit filed in Marion Superior Court names as co-defendants Conour and attorneys Thomas A. Hardin, Thomas Manges and Shine & Hardin LLP. In that case, Dustin Webb alleges that attorneys received funds from a settlement Conour negotiated for Webb’s father, Charles Webb, who died as a result of an Allen County vehicle crash.

“Defendants failed to pay plaintiff his portion of the funds,” the suit charges, while acknowledging Webb was “currently unaware of any knowledge (co-defendants) had regarding the wrongful actions” of Conour.

Co-defendants in the case filed a cross-claim against Conour that states, “Any damages that (Webb) has alleged are the direct and proximate result” of Conour’s conduct.

In a suit filed in August in U.S. District Court, ACF, a successor to Advocate Capital, claims that as of July 13, Conour owed $559,900 on a defaulted line of credit, plus fees and expenses exceeding $50,000 and 24-percent annual interest.

Devereux, former Conour associate Jeffrey A. Hammond, and their respective current firms, Ladendorf & Ladendorf and Cohen & Malad LLP, are named co-defendants in that case, which seeks to recover damages from fees paid to the attorneys by former Conour firm clients on cases the attorneys took with them after they departed.

A lawsuit aiming to deny coverage under Conour’s malpractice policy is also pending in the federal court in Indianapolis. Minnesota Lawyers Mutual Insurance Co. names a host of former Conour associates as co-defendants with Conour. Judge William T. Lawrence set a trial date of Jan. 12, 2015.

Devereux said the ACF suit is welcome, in a sense, because it will help clarify the priority of claims against a restitution fund held by the federal court in Conour’s criminal case.

So far, the restitution fund includes the $450,000 donation that Conour made to Indiana University Robert H. McKinney School of Law, which the university has returned to the court.

This story originally appeared in The Indiana Lawyer, a sister publication to Indianapolis Business Journal.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. The Affordable Care Act is not the reason for the slow recovery and lack of high paying jobs for low skill workers. This is a trend that has been going since the early 80's. The recovery is real in the sense that GDP has been growing steadily at a rate of roughly 2.5% since the recession ended in late 2009 (newsflash, the stimulus worked) and the unemployment has been steadily dropping. The reason issue we are facing deals with a skills gap (not enough workers with the right credentials / experience) and wage stagnation due to corporate America being focused solely on maximizing profits for shareholders and not caring about the American middle class. Why should they? Multi-billion dollar mutlinational companies keep offshoring their profits in order to avoid paying taxes (which makes our deficit worse) they convince Americans to fight amongst themselves. If you want to create jobs and reduce the deficit, raise the minimum wage and change corporate tax laws. Of course, if you want to continue to belive that tax cuts for wealthy create jobs (which they don't) and allow corporations and the wealthy to continue to make you cover more and more of the costs of maintaining infrastructure, funding the military and other government services, then keep voting Republican. Hopefully someday you wake up and realize what's been going on since Reagan took office.

  2. Helloooooo, my name is Kate. I am so joyous to share this wonderful testimony about what Dr. Osoijiakhena, a great spell caster, did for me and my family. I wedded a year and 6 months ago, we were very happy during this whole period, i really love my husband so so much. I started noticing changes when he started coming home late at night, he stop paying attention to me, i later found out that he was having an affair with another lady, i dont know what she did to get to him but she really got a hold on him. He started spending weekends with her, and threaten for divorce. I was so heart broken and devastated, i spent many night thinking on how to get my husband back. A friend took it upon herself to to introduce me to one Dr. Osoijiakhena, a great spell caster, who once helped her with a spell that reunited her family and helped her husband secure a very prolific job. Though i had my doubts and never believed, but i decided to give it a try because i was helpless. I contacted Dr. Osoijiakhena, the Spell caster, to help me reunite my family by bringing back my husband from that other woman and break whatever hold she had on him. He only just told me that it's a minor issue, once i provide and do everything he will ask me to do, then i will have my family back again. I did everything he required. And he did it!!!!! My husband returned back to me and pleaded for forgiveness, and i also secured a well paid job in a big company, just as the great spell caster, Dr. Osoijiakhena said. I am so so happy to share my testimony on this wall. I am using this medium to tell every one that has same or similar problem to try the great Dr. Osoijiakhena through his mail: drosoijiakhenaspell@gmail.com......he is so real!!!!! He can also help you with: (1) IF YOU WANT YOUR EX GIRL/BOYFRIEND TO RETURN BACK TO YOU (2) IF YOU WANT YOUR HUSBAND/WIFE BACK (3) IF YOU WANT TO BE PROMOTED IN YOUR OFFICE (4) IF YOU WANT YOUR MAN OR WOMAN TO LOVE YOU (5) IF YOU WANT A CHILD (BARREN) (6) IF YOU WANT TO BE RICH/WEALTHY (7) IF YOU WANT YOUR HUSBAND/WIFE TO BE YOURS FOREVER (8) IF YOU'VE BEEN SCAMMED AND WANT YOUR MONEY BACK (9) IF YOU ARE HAVING DELAY IN GETTING MARRIED (10) IF YOU HAVE A COURT CASE AND WANT TO WIN (11) IF YOU'RE A DRUG ADDICT AND YOU WANT TO REALLY STOP (12) IF YOU CANNOT IMPREGNATE A WOMAN (STERILE) (13) ALL TYPES OF DISEASES I advise you to contact the great Dr. Osoijiakhena, the spiritualist for solutions via his email: drosoijiakhenaspell@gmail.com

  3. Sergeant McNally is buried in Cathcart Cemetery on a hill known as McNally%u2019 Hill. The Cemetery is in a natural bushland setting and is very well maintained.The emergency department at Ararat Hospital is known as the John McNally Emergency Department. Cathcart is approx. 4.6 km from Ararat and is approx. 345 m above sea level.

  4. My spring chicken of a Mom is turning 75 years young. She is a big fan of Frankie and I think she would get a big kick out of the film. I wanted to take her to the Broadway play but am priced out. Thanks for your time and consideration. Oh yea, Wildwood! Joie

  5. I thought this company would go bankrupt in 2013/2014. I predicted that four years ago. I was wrong. It will take another couple of years, but they will get there.

ADVERTISEMENT