RICHMOND, Virginia (AP) – A former Virginia attorney pleaded guilty to allegations that he falsely received $ 4 million in funds primarily from the bankruptcy of the LandAmerica Financial Group, federal authorities said.
Bruce H. Matson faces up to five years in prison if convicted on November 22, the Richmond Times-Dispatch reported. He made his plea on Thursday.
Matson was stripped of his lawyer license last year after admitting he illegally paid out $ 2.8 million to LandAmerica Liquidation Trust Funds to himself and another attorney. He was charged this month on an official trial before the United States’ trustee program, which is a component of the US Department of Justice, of corrupt obstruction and obstruction from the proper application of the law.
In 2019, according to court documents, Matson misrepresented allegations that he embezzled funds as a court-appointed trustee in the bankruptcy of the LandAmerica Financial Group. Prosecutors said a state investigation between 2015 and 2018 uncovered multiple cases of Matson’s embezzlement that totaled about $ 800,000.
The U.S. Attorney’s Office also said Matson had manipulated the post-bankruptcy wind-up budget for LandAmerica to allow him to divert remaining funds to himself and others once the bankruptcy was closed and left out of control by creditors Bankruptcy court.