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Butler now facing federal charges

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Attorney racked up more than $1.6 million in gambling debts, according to indictment

By The Staff

 

Trouble continues to mount for a local attorney. Danny P. Butler has been indicted in federal court and made his first appearance in federal court in Bowling Green on Tuesday, according to a release from the United States Attorney’s Office for the Western District of Kentucky.

Butler, who already faces multiple charges after being indicted in LaRue and Taylor counties, was charged with multiple counts of wire fraud “as part of a scheme to obtain money from clients of his legal practice”, according to the release. The indictment was filed in open court on Wednesday, Nov. 15.

The wire fraud charges stem from five interstate wire transmissions that Butler allegedly caused. Two of those were in June 2013, one was in December 2014, one was in September 2015, and the last was in October 2015.

U.S. Attorney Russell M. Coleman states that Butler misappropriated funds to pay personal expenses, including gambling losses.

Butler, who is from Campbellsville but practiced law in Greensburg, maintained seven bank accounts that were used for both personal and business purposes, according to the report.

The indictment alleges that from August 2009 through October 2016, Butler used these bank accounts to mix client funds, and misappropriate funds from one client to distribute funds to other, unrelated clients.

Additionally, Butler transferred client funds from business bank accounts to his personal accounts.

The indictment also alleges that Butler used client funds from these accounts to make cash withdrawals and pay personal expenses. The misappropriated funds from 11 clients, the release states, were often used to pay off personal gambling losses, which were in excess of $1.6 million.

The indictment states that Butler’s gambling losses annually from 2009-2015 ranged from $47,370 in 2015 to $512,562 in 2011.

According to Butler’s indictment, the funds misappropriated were as low as $25,000 for one client  and as much as $401,500 for another. The funds came from clients represented by Butler, as well as estates.

If convicted, Butler could be sentenced to no more than 20 years in prison, face a $250,000 fine, and be required to serve a three-year period of supervised release.

Butler was indicted in Taylor County on Oct. 12 on four charges of theft, stemming from incidents in August 2014 and June 2016. All four of those charges are Class C felonies.

Butler was arrested in LaRue County on Friday, Oct. 27, where he faces two charges of theft by deception more than $10,000 but less than $100,000.

He faced similar charges in Hardin County last year, and search warrants were executed in Nov. 2016 by agents with the Federal Bureau of Investigations and Kentucky State Police at Butler’s Campbellsville residence, as well as his law office in downtown Greensburg.

The Federal Bureau of Investigations and Kentucky State Police are investigating the case.