The Real Deal Miami

Suit accuses missing attorney of investor fraud

May 08, 2013 02:00PM

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Timothy McCabe

A Palm Beach attorney who vanished nearly six weeks ago is being sued in the county’s circuit court by a couple who say he looted their trust in order to pay off his own mortgage, the Palm Beach Post reported.

The suit, filed last week, is believed to be the first client action taken against attorney Timothy McCabe, who vanished in early April, leaving his law firm’s bank accounts emptied of millions of dollars, the newspaper said.

Broward County residents George and Lori Miguel accuse McCabe, 55, of swindling $72,000 from a trust account to pay off a $388,334 mortgage for his Boca Raton home.

The couple claims they also lost a $40,000 deposit on a home they intended to buy but were not able to close on without the trust account money, the Post said, citing the lawsuit.

Six other clients have retained Fort Lauderdale attorney Jeffrey Sonn, who specialized in investment fraud.

“It all paints a picture of a guy in financial trouble using clients’ money to get him out,” Sonn told the Post. “While deals were pending, he was promising clients returns of one, two, four percent per month.”

The FBI, Palm Beach County Sheriff’s Department and Boca Raton police are working on the case, the newspaper said. [Palm Beach Post]Emily Schmall

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