Markel Insurance Company wrote an attorney malpractice policy for Las Vegas attorney Robert Graham in 2015. According to Markel the Law Firm’s application stated that they knew of no circumstances, situation, act, error or omission that could lead to a claim against the firm, even though Attorney Graham had been misappropriating funds long before December 2015 according the criminal indictment. According to the Clark County District Attorney’s office Attorney Graham is accused of stealing over $2.1 million of client money.
Attorney Graham’s closed his firm (Lawyers West) on December 2, 2016, leaving hundreds of clients looking for their money. It is alleged that the home that Graham and his wife had purchased in Colorado in 2014 for $955,000 had a new dead filed making Graham’s wife the sole property owner on December 5, 2016.
The state bar was made aware of Mr. Graham’s actions on or about December 2, and took immediate action to protect the public by filing an Emergency Petition for Temporary Suspension which was granted by the Nevada Supreme Court on December 9. The state bar is moving forward with disciplinary action against Mr. Graham who retained an attorney to represent him in the proceeding.
Graham has also filed for bankruptcy.
With over 400 people looking to the Markel Attorney Malpractice policy for coverage, Markel Insurance has stated that the $2 million policy should not have to pay because of the misrepresentations on the initial application. Time will tell whether Markel is successful in being able to rescind coverage.