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Kentucky Lawyer Arrested for Allegedly Stealing Settlement Funds

By William Vogeler, Esq. on November 25, 2016 | Last updated on March 21, 2019

Kentucky police have arrested a lawyer for allegedly stealing one client's money. Police also apparently have evidence of more victims.

Danny Butler, 70, is being held on $207,000 bail -- the same amount he allegedly stole from his client. Wanda Brewer, who filed a wrongful death suit on behalf of her son Dana, said Butler was a respected lawyer in her small town. She expected he would be honest and dependable.

It's Disgusting

"Really, it's disgusting," Brewer told a reporter for WLKY. "I just don't know the words to say anymore."

The charges stem from a 2010 case involving a wrongful death lawsuit against Hardin County's Communicare. Dana Brewer, who was mentally handicapped, choked and died when he was left unsupervised, according to the lawsuit.

Butler settled the case for $207,000 in September 2015, when Brewer said he stopped returning her calls. She assumed the case was still pending, until a Hardin county attorney suspected a problem when reviewing the settlement records. Police then searched Butler's office and home and found more incriminating evidence. Butler had clients throughout several counties, including Hardin, Adair, Taylor, Green, Russell and LaRue.

Police Suspect a Gambling Problem

Kentucky state police believe Butler may have stolen more than $1 million from his clients. Detective B.J. Burton said there's evidence of at least half a million missing.

"There's some indication from financial records that there was some gambling going on," he said. "As of right now, I mean we're back at least eight years, but I don't know that that's the end of it."

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