Former Tacoma, Washington, attorney indicted for embezzling more than half million from client’s trust account

Press Release

Lawyer allegedly stole funds from $1.6 million award victim received for motorcycle accident injuries

Seattle - A former Tacoma lawyer is indicted for twelve counts of wire fraud for his embezzlement from a vulnerable client's trust account, announced U.S. Attorney Tessa M. Gorman. Colby Parks, 65, allegedly stole more than $570,000 from a client who had been awarded about$1.66 million due to significant permanent injuries she suffered in a motorcycle accident. Parks will make his initial appearance at 2:00 today.

According to the indictment, in 2010 Parks became the trustee for a living trust designed to pay the victim's expenses after she was severely injured as a passenger on a motorcycle. Initially, the victim's trust account contained approximately $1.66 million. However, over the first seven years that Parks was the trustee, he siphoned the funds in such large amounts that only $20,000 was left. In 2018, Parks had the victim take out a reverse mortgage on her home and twice used the proceeds to fund the trust account. He continued to make transfers from the account for his own use. Records from the account show that Parks repeatedly transferred funds to his own bank accounts and then, on the same day or soon thereafter, Parks would make a payment for a personal credit card for the same amount as the transfer.

By the end of 2019, the victim's accounts held only $15. She was forced to sell her home. And even then, Parks diverted proceeds from the sale by claiming the victim owed him money he had advanced to her.

According to the indictment, Parks repeatedly told the defendant she was spending too much money, when in fact, the amount that the victim received as cash disbursements was a fraction of the amount that Parks secretly siphoned for himself.

According to the indictment, when Washington State's Adult Protective Services investigated Parks' representation of the victim, Parks initially claimed he was only paid a flat rate of $24,000 per year. After Adult Protective Services requested supporting documentation, Parks revised his statement and said he was paid varying amounts that averaged over $54,000 per year. However, the indictment alleges that Parks, in fact, collected well over $80,000 per year from the victim.

The Washington State Bar also investigated the matter, and Parks resigned his law license instead of discipline, which could have been disbarment.

Wire fraud is punishable by up to 20 years in prison.

The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Cindy Chang.

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Updated October 10, 2024