Ex-Law Firm Office Manager Sentenced to Prison for Bank Fraud

Summary

A press release from Huntington, W.Va. announcing that Todd M. Chapman, 58, of Huntington, was sentenced to four years and three months in prison and five years of supervised release and ordered to pay $602,362.97 in restitution for bank fraud. Chapman admitted that while office manager of a now-defunct Huntington law firm he embezzled funds, including money from client trust accounts and proceeds from a Paycheck Protection Plan (PPP) loan authorized by the CARES Act. According to the release, beginning in 2016 he wrote unauthorized checks to himself, forged signatures and created false documents, and he embezzled $13,686.21 from a $20,375 PPP loan the firm legitimately received. Chapman received the maximum prison term under Sentencing Commission guidelines, according to the release, and the case number is 3:25-cr-121.

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HUNTINGTON, W.Va. – Todd M. Chapman, 58, of Huntington, was sentenced today to four years and three months in prison, to be followed by five years of supervised release, and ordered to pay $602,362.97 in restitution for bank fraud. Chapman admitted that he embezzled funds from a now-defunct Huntington law firm while employed as the office manager, including money from client trust accounts and proceeds from a Paycheck Protection Plan (PPP) loan authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

According to court documents and statements made in court, Chapman was employed as the firm’s office manager for approximately 30 years. Beginning in 2016, Chapman enriched himself by writing unauthorized checks from the firm’s operating accounts and client trust accounts to himself. As part of his guilty plea, Chapman admitted that he had complete and exclusive control of the firm’s day-to-day finances during this time period, allowing him to carry out his scheme. Chapman further admitted that he forged signatures on checks, created false documents, made false statements under oath, and made false statements to federal law enforcement agents investigating the loss of client funds at the firm. Chapman ceased employment at the now-defunct law firm in April 2022.

Chapman embezzled at least $409,000 from the estates of three deceased firm clients, $100,000 that one minor client was supposed to receive upon turning 18, and $15,838.84 of an initial $20,000 settlement deposit for another minor client who suffered an injury as an infant. Chapman also embezzled $13,686.21 from a $20,375 PPP loan that the firm legitimately received to provide emergency financial aid during the COVID-19 pandemic. Chapman admitted that he spent the embezzled funds for his personal enjoyment and lifestyle.

Five of Chapman’s victims addressed the Court during the sentencing hearing. The Court found that Chapman abused his position of trust repeatedly over multiple years and sentenced him to the maximum prison term under Sentencing Commission guidelines.

“Stealing is bad enough. Stealing from victims — some of them children — while entrusted to safeguard their funds is indefensible," said United States Attorney Moore Capito. "This defendant’s conduct inflicted financial harm on individuals and shook confidence in an institution people depend on in their most difficult moments. That betrayal demanded accountability.”

Capito made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff's Office, and since-retired Southern District of West Virginia Litigation Financial Analyst Steve Rowley.

United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Erik S. Goes and Kathleen Robeson and former Assistant United States Attorney Andrew J. Tessman prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:25-cr-121.

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