Attorney Arrested on New Theft Charges

The way one Los Angeles County prosecutor sees it, personal injury attorney Michael Steven Kotzker adopted a remarkably direct approach to handling financial settlements for some of his clients: He kept all their money for himself.

Already accused of stealing nearly $200,000 from people he was paid to represent, Kotzker was arrested Friday at his Phillips Ranch home in eastern Los Angeles County in connection with three additional incidents in which he allegedly took an additional $143,000.

“He took a fee of 100%, you could say,” said Deputy Dist. Atty. Frederick G. Stewart, who is prosecuting the 41-year-old attorney.

In one case, Stewart said, Kotzker last year allegedly forged his clients’ names on a $100,000 settlement draft from the City of Los Angeles, deposited the money into his own account and spent it. In that case, Kotzker faces charges of grand theft and forgery.

In a second incident, Kotzker allegedly kept a $30,000 settlement awarded to another client. In the third case, the lawyer is accused of duping a client into loaning him $13,000 last year by promising to invest it and give the client a return of 60% on her money. Instead, Stewart said, the young woman never saw the cash again. In the last two cases, Kotzker is accused of separate counts of grand theft.

Kotzker on Feb. 10 was found “culpable” by a tribunal of the State Bar of California on 16 charges of misappropriating clients’ funds, 15 charges of moral turpitude, and 5 charges of abandoning clients, Stewart said. A hearing panel has recommended disbarment.

However, Kotzker has not yet been suspended from the practice of law and has continued to represent clients, the prosecutor added.

Two days after the State Bar tribunal delivered its verdict, the Los Angeles County district attorney’s office filed 14 felony charges of grand theft against Kotzker. The alleged thefts totaled $196,484.

In essence, Stewart said, Kotzker “represented the victims in personal injury suits . . . and obtained settlement proceeds from the defendants or their (insurance) carriers, and instead of remitting the proceeds to his clients, as a lawyer should, he used it all (for himself.)”

If convicted of all charges, Kotzker could face a sentence of up to eight years in state prison, Stewart said.

Kotzker, who was being held in Los Angeles County Jail on $300,000 bail on the new charges, was unavailable for comment.

His attorney, Richard L. Garrigues, said he believes that Kotzker is being harassed by the district attorney’s office.

“He was arrested this (Friday) morning, the day before Easter weekend. The last time he spent four days in jail before he could get out (on $30,000 bail),” Garrigues said. “It appears that the timing is being done intentionally. . . .”

Besides representing clients in personal injury cases, Kotzker has defended suspects against charges filed by the district attorney’s office, Garrigues added. However, the lawyer said, “I’m not going to speculate on the reason for the D.A.’s doing this to him.”

Garrigues declined to comment on the merits of the charges filed against his client.

Denial Issued

Any suggestion that the district attorney’s office has singled out Kotzker because of the nature of his practice is “palpably false,” said Stewart, the prosecutor. “What mattered to me was the money.”

“This is simply an unfortunate example of an attorney abusing his clients’ trust,” Stewart added.

“It’s the position of our office that (Kotzker) is going to be treated like every other thief and common criminal,” he said. “Simply because it’s a white-collar crime, (he) is not going to be pampered or given any different treatment from any other crook.”

Kotzker is scheduled to be arraigned on the four new counts Monday in Los Angeles Municipal Court.