San Diego attorney Todd Macaluso, who specialized in personal-injury lawsuits, was sentenced today (November 2) to five months in prison. A judge ordered him to pay $250,000 in fines and restitution.
Macaluso has admitted that investors provided him with up-front money to fund his lawsuits. The investors would collect as much as 200 percent of the clients' recoveries. But many of his clients weren't told that — and were not told that their cases were being put up as collateral.
Macaluso admitted that he forged signatures of his clients, as well as notary stamps, to woo investors to put money in the pot. The high possible payouts put pressure on Macaluso to settle personal-injury cases quickly, but that was concealed from some clients, too, according to the court records.