Ex-Va attorney convicted in law firm embezzlement
Ethics
A former attorney has been convicted of embezzling at least $450,000 from the law firm where she worked.
Henrico County Circuit Judge L.A. Harris Jr. on Friday found Kyle C. Leftwich guilty of eight counts of embezzlement in a scheme to divert funds from Marks & Harrison's accounts between 2004 and 2008. She could face up to 160 years in prison when she's sentenced in November.
Evidence showed that Leftwich endorsed Social Security checks made out to her for representing disabled clients. But she deposited the money elsewhere than into the firm's account and rigged firm ledgers to cover her actions.
Leftwich was fired in June 2010 and lost her law license a short time later. She repaid $450,000 to Marks & Harrison as part of a civil settlement.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.