A Wisconsin estate planning attorney whose license to practice law was revoked earlier this year for numerous counts of professional misconduct has reportedly reached a plea agreement with federal prosecutors. After she pleads guilty to five charges of a 33-count indictment, the mother of four could face years in prison.
Sarah Laux, 36, first came to public attention when the heirs of an early 20th century Milwaukee industrial leader claimed she had converted more than $1.5 million to buy real estate and pay personal expenses. This publicity prompted the son of another couple, who had retained Laux after meeting her at a trust seminar, to look into his parents’ finances. The son discovered that Laux had persuaded the couple to put some $2.1 million into a series of annuities, but that the annuities had never been purchased. He contacted the FBI. So far, only $106,000 of this amount has been recovered
Other examples of misconduct were detailed in the complaint to revoke Laux's law license. According to the Milwaukee Journal Sentinel, Laux will plead guilty to five counts in the indictment: bank fraud, mail fraud, wire fraud, money laundering and filing a false tax return.
“Federal sentencing guidelines would call for a prison sentence in the three- to four-year range, but as part of the deal, prosecutors agreed to recommend a below-guidelines sentence if Laux fully reveals everything she stole and helps identify and turn over assets to pay restitution,” the Journal Sentinel reports.
Laux also faces civil suits, including one from a former associate who claims he was wrongly terminated after he questioned legal and ethical aspects of her business.
Laux, who remains free on bond, is scheduled to enter guilty pleas October 6.
For the ABA Journal's coverage, click here.
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