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ST. LOUIS ? A lawyer whose embezzlement helped destroy a legal services non-profit in American Samoa was sentenced Monday in federal court here to five months in prison and five months of house arrest.
David Wagner, of the 1200 block of Roth Hill Drive in Maryland Heights, was acting executive director of the U'una'i Legal Services Corporation, which helped provide free legal services to victims of domestic violence, dating violence, stalking and sexual abuse.
Through his own improper actions and by ignoring the illegal actions of others, Wagner and two others took $160,000 from the non-profit from September 2005 to September 2007, according to court testimony and documents.
Wagner took $31,292 from the federal funds that supported the organization to compensate himself for writing grant proposals, his lawyer, Mark Hammer, said. Wagner signed black checks that enabled office manager Julie Matau to take $65,649 for herself and $62,822 for two daughters, a daughter-in-law and a son-in-law, prosecutors said, pointing out that the median household income in 2000 was just $17,018.
Many of the group's clients lost their legal representation after the theft was discovered and the office closed, prosecutors said.
Hammer said that Wagner was in financial trouble at the time and looked the other way while others took money. Hammer read a statement from Wagner, which said, in part, “I am, of course, filled with regret for what I did.” Wagner's statement said he allowed subordinates to take control, but did say that he continued to represent clients even after the office shut down.
In addition to the prison time, U.S. District Judge Carol Jackson ordered Wagner to repay the money.
Wagner waived indictment by a grand jury and pleaded guilty March 11, 2010 here to a felony charge of theft of federal property.
Julie Matau was sentenced last week in California to 366 days in prison for wire fraud and her daughter Andrea Matau was sentenced to probation for theft of federal funds.
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