Former Lindquist & Vennum Attorney Charged with Embezzling $2 Million from His Clients and the Firm

An attorney from one of the Twin Cities’ best-known law firms was charged today in federal court in Minneapolis with embezzling approximately $2 million from his clients and the firm. Michael Scott Margulies, age 56, of Minneapolis, was specifically charged with one count of wire fraud in connection to his crime. Margulies was a partner at the Lindquist & Vennum law firm in Minneapolis, where he worked from 1987 until he was fired, after the firm discovered the embezzlement earlier this year.

The Information alleges that from 1994 through 2010, Margulies embezzled the money through false documentation, including fraudulent expense reports and false invoices as well as forged checks. As to the charge of wire fraud set forth in the Information, Margulies wire transferred $58,000 from a client’s bank account into his own bank account on April 2, 2009.

If convicted, Margulies, who has been practicing law since 1978, faces a potential maximum penalty of 20 years in federal prison. All sentences will be determined by a federal district court judge.

This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Joe Dixon.