Lawyer faces 20 years for role in money laundering

A Newport Beach attorney has agreed to plead guilty to a federal money laundering charge Tuesday, according to federal prosecutors.

Thomas Burton, 60, faces up to 20 years in federal prison for his role in a money-laundering scheme, according to prosecutors.

“This is a case that we have been discussing with the U.S. Attorneys for many months, trying to convince them these charges should not be brought,” said Burton’s attorney Jim Riddet. “It is very, in my opinion, outrageous conduct to do this to a legitimate lawyer.”

Riddet acknowledged Burton violated the law.

Burton agreed to launder $500,000 for Daryl Ray Rice, who told Burton he had funds he needed to move from an overseas mail fraud scheme, prosecutors said. Unknown to Burton, Rice was working for the FBI and the conversations were recorded, according to prosecutors.

The FBI directed Rice to do a test transaction that wired $50,000 through Burton’s help into a UniCache account in Bermuda, prosecutors said.

Before cooperating with the FBI, Rice pleaded guilty to mail fraud and structuring cash transactions to avoid reporting requirements, according to prosecutors.

Burton’s plan was to make Rice’s proceeds “look like an investment,” according to the plea agreement.

According to Riddet, Rice had been a client of Burton’s previously and came to Burton with a problem. Upon hearing about how Rice obtained the money and what he wanted to do, Burton agreed to help, according to Riddet.

“Tom is facing up to it,” Riddet said. “He didn’t realize it was as serious as it turned out to be.”

Riddet believes when the case is heard in front of the judge Burton’s charitable work, years of service and the legitimacy of the charges will work in favor of Burton and the sentence will reflect that.

Burton is scheduled for arraignment in U.S. District Court in Santa Ana Feb. 4, according to prosecutors.

— Daniel Tedford