Boston Attorney Faces Wire Fraud Charges For Over $2 Million Escrow Theft
Founded in 2015 Cornell Dolan PC by Patrick J Dolan and Timothy M Cornell is a boutique high end Massachusetts law firm. In October 2024, managing partner Dolan was temporarily suspended from practicing law by the Massachusetts Board of Bar Overseers, pending disciplinary proceedings.
On July 24, 2025, federal prosecutors charged attorney Dolan with four counts of wire fraud for allegedly misappropriating more than $2 million in client funds held in trust accounts. The charges were filed in the U.S. District Court for the District of Massachusetts following a lengthy investigation into Dolan’s alleged misuse of funds between 2018 and 2024. According to the U.S. Attorney’s Office, Dolan diverted funds from at least two client matters, including a family trust, into accounts he or his family controlled. Prosecutors allege he used these funds for personal expenses such as mortgage payments, tuition, student loans, and even a down payment on a home. Dolan allegedly concealed the theft by falsifying bank statements and trust account records. The criminal charges carry a maximum sentence of 20 years in prison per count.
This is a reminder of the importance of:
- Daily reconciliation of client trust accounts
- Internal audits and separation of financial duties
- One person should not control all of the firm’s finances
- Timely responses to trust account inquiries
- Clear communication and documentation with clients
- Proper use of accounting software with audit trails
The Insurance Perspective
From a legal malpractice insurance (LPL) standpoint, allegations of theft and intentional fraud are typically excluded from coverage. LPL policies contain exclusions for dishonest, criminal, or malicious acts. However, a policy may still defend the firm and innocent partners for legal malpractice claims depending on the policy language but expect no LPL coverage for the alleged theft of funds.
A properly endorsed crime insurance and/or cyber policy may provide coverage but again expect ownership exclusions.
Need help evaluating your firm’s LPL or crime coverage?
Contact us today at L Squared Insurance Agency to schedule a confidential review.
Contact L Squared About Insurance Needs
Contact Me Today
Lee Norcross, MBA, CPCU
California License # 0D87292
L Squared Insurance Agency, LLC ® DBA in California as L2 L Squared Insurance Agency, License # 0L93416
Managing Director, CEO
Lee@L2Ins.com
616-726-7080
