Attorney Fraud as Lawyer Bilks OC Residents out of Thousands in Santa Ana

A disbarred attorney pleaded not guilty Monday to charges of taking nearly $150,000 from three people and using their money to pay personal debts.

Fred Raymond Hunter Jr., 50, of Riverside, who was disbarred Oct. 16, 2014, was charged Friday with three felony counts of embezzlement by a fiduciary of trust, with sentencing enhancement allegations for theft exceeding $100,000 and aggravated white collar crime exceeding $100,000.

Between June and November of 2013, Hunter allegedly used about $4,600 in funds from legal settlements that were owed to a client to pay a debt to another client, according to Deputy District Attorney Gautam Sood.

Between the same period, he allegedly embezzled about $52,200 from another client's settlement for the same reasons, Gautam said.

Between April and July of 2014, he is accused of appropriating about $88,800 from a third victim's settlement in a fraudulent way, Gautam said.

Hunter's disbarment stemmed from a dispute he had with a client, Mario Pineda, according to the state Bar of California. The criminal complaint does not include claims from the case that led to Hunter losing his law license, Gautam said.

Pineda hired Hunter to pursue a personal injury and property damage claim in a vehicle accident on Nov. 20, 2009, according to the bar.

Hunter was accused of taking two checks from the client's insurance company amounting to $3,609 for medical bills and forging Pineda's signature on them and depositing them into a trust account for the client in April of 2010. Hunter did not use the money to pay the medical bills, the bar reported.

Hunter received a $15,000 settlement from an insurance company in March 2011, but did not give it to his client, the bar reported. Instead, he kept the money "for his own use and purposes," according to the bar.

Hunter also allegedly kept improperly representing the client in the litigation even after he was fired and another firm was hired to replace him, according to the state bar. That made it more difficult for the client to resolve the litigation later on.

"Not only was the client left in the dark with respect to the handling of his case, but no breakdown of the settlement proceeds was ever memorialized, no disbursement of settlement proceeds was ever effectuated and nothing had been done to address the client's multiple bills," according to the state bar.

Hunter was suspended for 18 months in 2003 for similar violations, according to the state bar.

Hunter's attorney, Donald Rance Welch, arranged for his client to surrender Monday. Hunter was released after posting $100,000 bail. He faces up to five years and four months in prison if convicted.

City News Service, Shutterstock Photo