A former attorney from Portland was sentenced to federal prison today for defrauding over one hundred clients out of millions of dollars in insurance proceeds and using the stolen money to bankroll a lavish lifestyle. Lori E. Deveny, 57, was sentenced to 101 months in federal prison and three years’ supervised release. Deveny was also ordered to pay more than $4.5 million in restitution to her victims.
Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office said, “It’s hard to overstate the extraordinary impact Ms. Deveny’s crimes had on the many innocent and vulnerable victims who trusted her. As a former attorney, she had a special responsibility to her clients and to the public, but she repeatedly abused this trust and prioritized her own needs. This is a just sentence for serious crimes.”
According to court documents, between April 2011 and May 2019, Deveny used manipulation and deceit to systematically defraud at least 135 clients out of more than $3.8 million in insurance proceeds she held in trust on their behalf. To accomplish her scheme, Deveny stole her clients’ identities, forged insurance checks made payable to them, deposited client funds into her personal bank accounts, and continually lulled clients into a false sense of hope that they would receive compensation for their injuries. Many of Deveny’s victims were particularly vulnerable to her criminal behavior after sustaining serious brain and bodily injuries and never received the insurance payouts they were owed.
Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office said, “The cruelest thing of all is knowingly providing false hope. Having already suffered losses, Ms. Deveny’s clients deserved an attorney who represented their best interests. What they got instead was someone who inflicted more loss.”
Deveny used the proceeds of her scheme to pay for foreign and domestic airline tickets, African safari and big game hunting trips, taxidermy expenses, home renovations, mortgage payments, cigars and related expenses, pet boarding and veterinary costs, recreational vehicle expenses, and a Cadillac luxury vehicle.
All told, Deveny’s crimes resulted in total losses to all victims of more than $4.5 million.