A Virginia Beach lawyer now faces criminal charges based on allegations he misappropriated more than $2.3 million from money intended to pay off mortgages and other obligations involved in real estate closings.
The two-count criminal information filed Thursday in Norfolk federal court accuses David R. Flynn of diverting money from his escrow accounts to his personal use. The government’s charges do not allege what Flynn did with the missing money.
A court schedule indicates a guilty plea is expected.
The criminal charges follow a civil lawsuit filed in December by a title insurance company with similar allegations.
Flynn’s law license currently is suspended. The Virginia State Bar Disciplinary Board administratively suspended his license Jan. 27 for alleged failure to comply with a subpoena duces tecum. An additional administrative suspension was imposed March 12 for noncompliance with continuing legal education requirements, according to a VSB staffer.
Flynn regularly served as a settlement agent to close real estate transactions. He also owned an insurance agency that sold title insurance issued by First American Title Insurance Co., according to the government’s charges.
Prosecutors said he diverted money to his personal use from 12 transactions that took place from September to December of last year. Most of the money was purchase money placed in Flynn’s escrow accounts and intended to pay off prior mortgages, the charges said.
A plea agreement hearing is scheduled for April 15 before U.S. District Judge Henry C. Morgan Jr., according to online court records.
Flynn is represented by Norfolk lawyer James O. Broccoletti, who said Friday he was unable to comment on the case.
This post was updated on April 7 to noted the upcoming court appearance.