Well-known plaintiffs’ lawyer Gene Cauley has agreed to plead guilty to one count of wire fraud and one count of criminal contempt for “failing to safely hold” $9.3 million in settlement money he was holding for clients. The WSJ Law Blog reports that in an Arkansas Supreme Court filing Cauley made on May 9, he stated that was also giving up his law license.
The WSJ reports that Cauley was one of the lead plaintiffs’ lawyers in a 2004 securities suit against BISYS Group that settled in 2006 for $65.8 million. Cauley was the sole signatory of an account created to hold the BISYS settlement money, the WSJ reports, but could not produce about $9.3 million in settlement funds that was supposed to be distributed to the plaintiffs in April.
John Wesley Hall, Cauley’s lawyer, says the missing settlement money “could be in all kinds of things,” such as real estate and business ventures.