Paralegals & Legal Secretaries

Paralegal Cashed Checks, Suit Alleges

By ParalegalGateway.com

A paralegal charged with embezzling $1.2 million from her boss's trust account is accused of cashing dozens of checks worth hundreds of thousands and using part of the money to buy a house, a previously sealed civil suit alleges.

Tammy Mann Kullnat, 49, of Indian Trail, has been in the Union County Jail since mid-December, when she turned herself in on a civil arrest warrant. She also is being prosecuted in criminal court on one count of embezzlement. Her bond is $600,000.

An affidavit in a civil suit filed by her former boss, Monroe attorney Richard Hutaff, claims Kullnat used the checks to misappropriate $402,993. Most of the 68 checks identified in the suit were made out to Kullnat and bear Hutaff's name on the signature line. His suit, which seeks at least $20,000 in damages, claims his name was forged.

Hutaff also alleges Kullnat wrongly wired at least $125,100 out of the trust account, which is a pool of clients' money held by an attorney. The affidavit claims Kullnat used some of the money to buy a house in the Brandon Oaks subdivision of Indian Trail and loaned a client $200,000. Hutaff claims he has "personally advanced ... $980,000 to cover the misappropriations."

Kullnat, in a court filing, denied the allegations. Her attorney, David Bland of Matthews, has said lawyer Hutaff authorized the checks.

The case was filed on Dec. 3 in Union County Superior Court. Four days later, Judge Craig Ellis ordered the case sealed, according to the order.

The motion was made without the knowledge of the defense, Bland said. "We had no idea that's what they were doing," he said.

Hutaff's attorney, John Burns of Monroe, did not immediately return a phone message Friday.

The case was unsealed late Thursday afternoon after The Charlotte Observer filed a motion alleging the case had been sealed improperly and should be open to the public.

Both sides agreed to unseal it.

Bland said he expects to file a more detailed response to Hutaff's complaint in a week or so.

Kullnat's next criminal court date is scheduled for Feb. 7 in Union County District Court. (Source)

Full post as published by ParalegalGateway Blawg on January 14, 2008 (boomark / email).