Lawyer Pleads Guilty to Stealing $800K

November 7, 2006

The Associated Press

Washington Post

Monday, November 6, 2006; 5:34 PM

dyn/content/article/2006/11/06/AR2006110600797.html

ATLANTA -- A North Georgia lawyer on Monday pleaded guilty to

federal charges that he stole $800,000 from clients to pay his

bills, make home repairs and cover his girlfriend's rent and

utilities.

According to the U.S. Attorney's Northern District Office,

Femery Peebles of Flowery Branch specialized in construction

litigation and represented clients who suffered physical injury and

property damage resulting from mold infestations in their homes.

Federal prosecutors said Peebles, 56, would settle the cases without

telling his clients, then forge his clients' signatures on the

settlement checks and use the money to pay his own expenses. The

settlements were intended to pay for the clients' home repairs and

for medical treatment related to inhaling mold fibers.

A grand jury indicted Peebles in May 2005 and charged him with nine

counts of fraud and four counts of aggravated identity theft. He

pleaded guilty to one count of wire fraud and one count of

aggravated identity theft.

As part of his plea agreement, Peebles agreed to make full

restitution to all his victims. To date, his former clients have

recovered approximately $220,000 in settlement money.

Peebles faces a maximum sentence of 22 years in prison and a fine of

up to $250,000 on each count. A sentencing date has not been set.

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