Breaking News: Disbarred former LeClairRyan attorney Bruce Matson charged in criminal case

Bruce Matson

Bruce Matson, a veteran Richmond attorney who was dismissed from office last year for his mishandling of millions of dollars in a major bankruptcy case, has been charged by federal prosecutors.

U.S. prosecutors hit Matson Thursday with a charge of obstruction of an official process related to his work as a trustee overseeing the bankruptcy of the collapsed title insurance giant LandAmerica, based in Henrico, while employed by the LeClairRyan law firm.

The short bilateral file states that Matson “corruptly influenced, hindered and hindered, and sought to influence, hinder the proper and orderly application of the law under which a lawsuit was pending before a United States agency and to hinder ”. , this is the United States’ trustee program. “

The US trustee program is a component of the Department of Justice.

Matson has been charged through the criminal disclosure process, which does not require a grand jury indictment and usually involves the cooperation of the accused. Matson was not arrested on charges.

He will remain free at least until his first appearance in court on July 22nd at 10:30 a.m. before magistrate Mark Colombell. This process will include a detention hearing. He will then immediately go to Judge John Gibney for a charge and a hearing on the settlement agreement.

A subpoena issued in the case indicates that Matson intended to plead guilty.

Matson is represented in the criminal case by McGuireWoods attorney Brandon Santos, who refused to comment.

The filing claims the alleged crime occurred between August 25 and November 11. 25, 2019, but no further details of the alleged disability are included.

The indictment comes more than a year after a bankruptcy court learned that Matson mistakenly withdrew nearly $ 3 million from LandAmerica’s settlement account and deposited it in his personal and a partner’s bank account.

Matson, who spent much of his 40-year legal career as a bankruptcy administrator, oversaw the complex LandAmerica case from the time the Henrico-based title insurance giant collapsed in 2008 until its seemingly successful conclusion in 2015.

However, in August 2019 it was found that the dismantling fund had been emptied. These funds should only be paid out after the wind-down phase has ended in 2021.

Matson eventually admitted having withdrawn the funds from the escrow account and was removed from the LandAmerica case as escrow despite his objections. He has since returned the funds to the property and was also expelled from the Virginia State Bar, which ended his career as a lawyer.

He also recently paid an additional $ 577,000 to the LandAmerica estate for reasons not explained in the bankruptcy filings.

This is the latest news. Stay tuned tomorrow for more information on BizSense.