Arrested for embezzlement, central coast lawyer resigns

A San Luis Obispo personal injury lawyer charged with 25 felonies for his alleged embezzlement of more than $200,000 from nine clients resigned from the State Bar last month. BRET McKINNEY COOK [#170726], 44, also is accused of writing bad checks worth thousands of dollars, practicing law while suspended and providing false documents to investigators. If convicted, he faces up to 23 years in prison.

The bar placed Cook on involuntary inactive status in August after receiving numerous complaints from clients. It seized his law practice and is in the process of returning files to hundreds of clients.

Cook had a busy practice as a result of heavy advertising on television and radio and in newspapers and the phone book. But according to court records, he settled many cases quickly and did not pay his clients the money they were owed. He either used other clients’ funds to make partial payments or he told his clients negotiations were ongoing.

San Luis Obispo deputy district attorney Steve von Dohlen said that since Cook’s arrest, “we got overwhelmed by many, many, many more previous and current clients of his” who contacted law enforcement officials to complain. Von Dohlen planned to file more charges.

He said his office is still investigating the motives behind the alleged embezzlement, and that none of the usual problems associated with the crime, such as gambling or drugs, have arisen. Although he said Cook owns a big house, a BMW and another car as well as a boat, his lifestyle did not appear particularly lavish compared to other lawyers in the community.

Multiple malpractice actions also have been filed against Cook, who has worked in San Luis Obispo for about 10 years.

In its petition to lift Cook’s license, the State Bar accused him of misappropriating client funds, settling cases without his clients’ knowledge or authorization, failing to pay clients and their doctors, submitting falsified documents to an insurance company and his clients, bouncing checks and engaging in the unauthorized practice of law.

The bar’s examination of Cook’s client trust account earlier this year showed he misappropriated more than $140,000 from six clients. His office manager reported that four clients had complained that settlement checks they received from Cook had bounced. Five of his six employees quit because their paychecks bounced.

The bar also charged that Cook submitted false documents to clients and an insurance company in order to cover up his failure to file lawsuits.

Cook was suspended from practice in January 2003 but after his suspension met with a client who had a personal injury case. He settled the case without the client’s authorization, deposited a $60,000 check in his trust account and within 10 days, before any money was given to the client, the balance in the account fell below zero.

Cook eventually reimbursed the insurance company.

Another client agreed to settle her personal injury claim for $220,000. Cook received two checks totaling that amount but did not inform the client. Instead, according to the bar charges, he told her he had received no funds but offered to give her settlement “advances.” He wrote several checks, some on his client trust account and some on his general account; at least two were returned by the bank because of insufficient funds.

Cook eventually told the client he had received $50,000 for her and later changed the amount to $70,000. It was not until the client hired another lawyer that she learned Cook actually had received $220,000. He also misrepresented that he had paid more than $57,000 to the client’s doctors. The client was unable to schedule additional surgery because her doctor was never paid.

Cook was disciplined twice previously for similar misconduct. In both matters, he failed to perform legal services competently or pay client funds. He missed court hearings and violated court orders, resulting in the dismissal of two cases.

“I believe as an officer of the court, a lawyer has a much higher standard and duty of care than almost anyone else in such a position of trust,” von Dohlen said. “In general, we look for the human failings that lead to these poor choices, but in the instance of an attorney, those excuses don’t go very far.”