Crowell & Moring sued in NY courts following alleged theft of client funds by former associate

September 27, 2011 Crowell & Moring has been sued in New York state court by a former client.

Real estate management company Regal Real Estate is suing Crowell & Moring for negligence and breach of contract, claiming that the firm cannot account for some $5.5 million being held in escrow on behalf of them and other plaintiffs. It is alleged that a former attorney with the firm "improperly diverted" at least some of the missing money.

The suit claims that then-associate Douglas R. Arntsen was responsible for "the apparent theft of escrow funds," and that the firm and a supervising partner did not adequately supervise Arnsten’s work.

Arntsen is reportedly being held in Hong Kong.


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