The former Crowell & Moring attorney pleaded guilty in a Manhattan court to several counts of grand larceny and scheme to defraud. Wearing a dark jacket and tan pants, Arntsen replied to the charges iterated by Acting Supreme Court Justice Jill Conviser in monosyllables and to the affirmative, with a maximum of “Yes, Your Honor.” Justice Conviser observed that Arntsen would have to serve his prison sentence on top of making full restitution of $10.8 million to two clients.
The guilty plea by Arntsen ends the drama that began in 2011, when Arntsen fled to Hong Kong following notice by the Manhattan district attorney's office to his law firm that he was subject of a criminal investigation. Prosecutors accused that Arntsen had fled to avoid arrest, but his defense lawyer maintained that Arntsen was taking a planned vacation.
Federal authorities brought Arntsen back to the United States in January, and since then have held him without bail. His sentencing is scheduled for October. While his current sentence is yet to be known, it could have been up to 25 years, had he not pled guilty.
Lewis, Arntsen's defense lawyer, said, “He's always indicated his intention to accept responsibility, and he did today.”
Manhattan District Attorney Cyrus Vance said, “Today's conviction holds him accountable for fraudulent conduct that violated the law, abused his clients' trust, and cost them millions of dollars.” Vance stressed that Arntsen had violated the “sacred trust” between attorney and client.
Arntsen's acts came as a shock to his friends and colleagues who viewed him as a hard-working, good-natured lawyer. The managing partner of Crowell, Ellen Dwyer said in a statement, “We regret the harm caused by Douglas Arntsen to our clients and our firm, and are pleased Mr. Arnsten has acknowledged his crimes with a guilty plea.”
The case is People v. Arntsen, New York State Supreme Court, New York County, No. 01399/2012.
