Illinois Attorney Indicted Over Alleged Forged Orders That Drained More Than $400,000 From Minors’ Settlement Accounts

An Illinois lawyer appointed to protect settlement money for four children has been indicted on federal charges after prosecutors say he used fabricated court orders to withdraw more than $400,000 from accounts held in the minors’ names.

Who Is Accused: David Elliot, 41, of Bethalto, was indicted on 15 counts of bank and mail fraud stemming from his role as guardian ad litem for three children in 2016 and another child in 2017 in Madison County.

Allegations and Timeline

As guardian ad litem, Elliot was charged with representing the minors’ best interests and overseeing bank accounts established to hold settlement proceeds from lawsuits tied to their deceased parents. Prosecutors allege he was not authorized to withdraw settlement funds from those accounts without a special court order.

Instead, authorities say Elliot fabricated court orders and presented them to the bank to obtain funds. The indictment alleges these withdrawals took place between May 2019 and October 2022 and totaled more than $400,000. Local reporting indicates that two of the beneficiaries received none of their settlements and a third received only a small portion.

Alleged Concealment Scheme

The indictment further alleges that, as one beneficiary neared age 18, Elliot moved money from two minors’ accounts into that child’s account to hide earlier shortfalls before the beneficiary could review their balance. Prosecutors also say he created a bogus order telling one beneficiary the funds were restricted until age 21 — a restriction not found in the official court record.

Charges, Possible Penalties, And Trial Date

Elliot faces 15 federal counts of bank and mail fraud. Each bank fraud count carries a statutory maximum penalty of up to 30 years in prison and fines up to $1,000,000; mail fraud carries up to 20 years and fines up to $250,000. These are maximums under federal law and do not predict the sentence Elliot would receive if convicted.

His jury trial is scheduled to begin November 9 at the federal courthouse in Benton, Illinois.

Practical Advice For Families With Settlement Funds

Families who have settlement money held on behalf of a child should take the following steps:

• Keep copies of the settlement agreement, all court orders and every bank statement related to the accounts.
• Compare any court order an attorney provides with the official court file — do not rely solely on a copy supplied by the person managing the funds.
• Review bank statements against authorized withdrawals and ask questions about unexplained transfers or missing balances.
• If you suspect wrongdoing, contact the court, the financial institution, or independent counsel promptly.

Resources In Illinois

Illinois residents who suspect a lawyer has acted dishonestly can file a complaint with the Attorney Registration and Disciplinary Commission (ARDC). The ARDC recommends keeping copies of court papers, receipts and other records that support a complaint.

The ARDC also administers a Client Protection Program that may reimburse eligible claimants for certain losses caused by dishonest conduct by Illinois lawyers. The program can cover up to $150,000 per loss subject to program rules, such as a disciplinary finding against the lawyer or the lawyer’s death and reasonable efforts by the claimant to pursue other recovery.

Legal Note: The allegations in the indictment have not been proven in court. David Elliot is presumed innocent unless and until proven guilty.

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