Disgruntled lawyer who stole millions from LA and OC clients faces conviction in federal court – Orange County Register

LOS ANGELES – A disqualified personal injury attorney from Irvine, Los Angeles and El Segundo faces sentencing Thursday for stealing the bulk of a multi-million dollar payment that should have paid to a car accident victim, as well as his tax fraud.

Philip Layfield was found guilty of 22 counts, including electrical fraud, mail fraud, tax evasion, failure to collect and pay excess payroll taxes and failure to file taxes, according to the United States Attorney’s Office.

Following the August 2021 grand jury verdict in Los Angeles federal court, Layfield, 48, was placed in federal custody.

After appropriating millions of dollars from client settlements, Layfield moved to Costa Rica. Just before boarding a flight to Costa Rica, Layfield borrowed $700,000 from a business lending company by providing false information and failing to disclose important information.

He then used a significant portion of the loan proceeds for personal expenses, including the purchase and transportation of horses to Costa Rica, the evidence shows.

In 2016, Layfield entered into an agreement to represent an individual who was hit by a car in Orange County and sustained serious injuries. After negotiating a $3.9 million settlement related to the crash, Layfield appropriated most of the money owed to the victims — approximately $2 million — for personal and business use, including including to pay customers for whom payment has been previously appropriated by Layfield.

The car crash victim received only $25,000 from the settlement amount. Layfield also failed to file federal income tax returns for tax year 2016, despite receiving more than $3 million, including embezzled customer payments. He also kept his law firm from paying about $120,976 in payroll taxes to the US government in the second quarter of 2017.

The State Bar of California fired Layfield in October 2018. He is also a certified public accountant, but his CPA license expired in July 2019.