Former Denver Attorney Pleads Guilty
To Financial Fraud Charges
DENVER, COLO. – A former Denver attorney has pleaded guilty to financial fraud charges, U.S. Attorney Barry Grissom said today. Prosecutors from Grissom’s office are serving as special counsel on the case, which was filed in U.S. District Court in Denver.
Robert T. McAllister, 62, Denver, pleaded guilty to two counts of conspiracy to commit financial fraud and one count of bankruptcy fraud.
In his plea, McAllister admitted that from 2006 to 2011 he and others conspired to obtain wire transfers totaling more than $1 million in a scheme to obtain funds that were subject to a temporary restraining order entered by U.S. District Judge Stephen N. Limbaugh for the Eastern District of Missouri, and to then use that money for a down payment in a real estate transaction on a house on Kelsie Court in Clark, Colo.
As part of the conspiracy, McAllister embezzled funds from a client that he had agreed to hold in trust in an interest bearing account. He transferred the stolen funds into accounts he and another conspirator controlled and into an account belonging to a title company. Part of the money was applied to a down payment on the Kelsie Court residence, which was being purchased by the co-conspirator as a straw buyer from McAllister. In an application for a loan to buy the property, the co-conspirator falsely represented that she had a monthly income of more than $39,000.
To cover up the fact McAllister had embezzled client funds, he prepared a series of phony bank statements to give the impression the clients’ money was safe and earning interest.
In March 2011, McAllister filed a Chapter 11 bankruptcy petition, containing materially false information, with intent to conceal the fact he was attempting to cause the bankruptcy court to transfer money he had previously embezzled.
Sentencing is set for Sept. 14. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each of the conspiracy counts, and a maximum penalty of five years and a fine up to $250,000 on the bankruptcy fraud count.
Grissom commended the FBI, IRS-Criminal Investigations, Assistant U.S. Attorney Richard Hathaway and Assistant U.S. Attorney Christine Kenney for their work on the case. Hathaway and Kenney are serving as special counsel in the case.
