Seattle City Wire

A former lawyer from Tacoma, Washington, has been indicted on twelve counts of wire fraud related to the embezzlement of funds from a client's trust account. U.S. Attorney Tessa M. Gorman announced that Colby Parks, 65, is accused of stealing more than $570,000 from a client who was awarded approximately $1.66 million following injuries sustained in a motorcycle accident.

According to the indictment, Parks became the trustee for the victim's living trust in 2010. The trust was established to cover expenses for the victim after her severe injuries as a motorcycle passenger. Initially holding around $1.66 million, the account saw significant depletion over seven years under Parks' management, leaving only $20,000 by 2017.

In 2018, Parks reportedly advised the victim to secure a reverse mortgage on her home and used proceeds twice to replenish the trust account while continuing personal withdrawals. Records indicate he transferred money to his accounts and subsequently paid off personal credit card bills matching those amounts.

By late 2019, just $15 remained in the victim's accounts, forcing her to sell her home. Even then, Parks allegedly diverted some sale proceeds by claiming repayment for money he purportedly advanced her.

The indictment further reveals that Parks often told the victim she was overspending when most disbursements were far less than what he allegedly misappropriated.

Washington State’s Adult Protective Services investigated and initially heard Parks claim he earned a flat rate of $24,000 annually for managing the trust. After being asked for evidence, he adjusted his statement to suggest earnings averaged over $54,000 per year; however, allegations state his actual income exceeded $80,000 annually from this arrangement.

Following an investigation by the Washington State Bar Association into these activities, Parks resigned his law license instead of facing potential disciplinary actions such as disbarment.

Wire fraud carries penalties of up to 20 years imprisonment if convicted. It is important to note that charges are merely allegations until proven guilty beyond reasonable doubt in court.

The FBI is leading this investigation with prosecution handled by Assistant United States Attorney Cindy Chang.