Law Firms

Ex-LeClairRyan general counsel gets prison time, while firm insurer agrees to pay $10M to bankruptcy trustee

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The former general counsel of the defunct law firm LeClairRyan was sentenced to 44 months in prison in Richmond, Virginia, on Monday for lying to the U.S. Trustee Program while trying to thwart an investigation into his embezzlement of more than $4 million.

Disbarred Richmond, Virginia, lawyer Bruce Matson, 64, was sentenced following his guilty plea to obstructing an official proceeding, report Law360 and the Richmond Times-Dispatch.

Matson misappropriated about $800,000 between 2015 and 2018 while serving as the court-appointed trustee in the bankruptcy of LandAmerica Financial Group Inc., according to a press release by the U.S. attorney for the Eastern District of Virginia. He also manipulated the budget for the post-bankruptcy wind-down to allow himself to pay $3.2 million in bonuses to himself and others, prosecutors say.

The investigation into the misconduct also found that Matson embezzled $23,000 in 2016 from the estate of Forefront Capital, a defunct futures broker for which Matson was a receiver and a debtor-designee, prosecutors say.

Matson has already made restitution.

U.S. District Judge John A. Gibney Jr. of the Eastern District of Virginia said during the sentencing he read several…

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