Legal News

L.A.attorney arrested on counterfeiting allegations

By Jason Siegel

Los Angeles ­ Federal immigration authorities have arrested a Los Angeles attorney, charging him with illegally selling hundreds of counterfeit Federal Reserve notes, some of which, if real, would have been worth $500 million.

U.S. Immigration and Customs Enforcement (ICE) agents arrested Darrell Lee Johnson, 78, of the Law Offices of Darrell Lee Johnson, who is charged with possessing and attempting to sell fictitious financial obligations. Johnson has had his license suspended five times by the State Bar of California for failing to pay his membership fees and MCLE noncompliance. He also has received two disciplinary actions, most recently in 2006.

ICE agents allege that Johnson, along with two other people previously arrested, marketed the fraudulent notes to investors nationwide. The agents seized 500 fraudulent notes from Johnson's law office, and from his residence, that had a 1934 issue date and depicted President William McKinley.

The Bureau of Engraving and Printing's largest denomination printed for the public was a $100,000 Series 1934 Gold Certificate with a picture of President Woodrow Wilson. These notes, printed in 1934 and 1935, were used as transactions between Federal Reserve Banks.

The investigation, which is ongoing, is being prosecuted by the U.S. Attorney's Office for the Central District of California, with assistance from the U.S. Secret Service. ICE is the investigative arm of the Department of Homeland Security.

- Amanda Bronstad

Full post as published by Legal Pad | LA on February 27, 2008 (boomark / email).