(Photo: Diego M. Radzinschi/ALM)

This story has been updated with a response from Akin Gump.

Lawyers at Akin Gump Strauss Hauer & Feld allegedly took advantage of a troubled CEO and looted his internet domain business, using the company's money to pay for personal expenses that included a family vacation in the Cayman Islands and nearly $3,000 in Broadway tickets, according to a new legal malpractice lawsuit filed Thursday in New York state court.

Future Media Architects, a British Virgin Islands company that traffics in internet domain names, is seeking at least $25 million in damages against the Washington, D.C.-based law firm, whose attorneys began representing FMA in 2012 and its former CEO, Thunayan Al-Ghanim, in 2013.

The complaint asserts that Al-Ghanim struggled with substance abuse and mental health issues, and because Akin Gump's lawyers knew Al-Ghanim was unable to monitor either FMA or the law firm's activities, the lawyers allegedly assumed control of FMA's finances. That included opening up bank accounts in Akin Gump's name, charging and paying attorney fees without FMA's approval, and selling internet domain names at below-market rates, according to the lawsuit filed by Shareefah Al-Ghanim, Thunayan Al-Ghanim's sister, who became FMA's sole owner in 2018.

"Future Media Architect's complaint alleges multiple breaches of trust by Akin Gump attorneys, including overt conflicts of interest, self-dealing, co-mingling of personal and client funds, and outright theft," said Adam Richards, a partner at Moses Ziegelman Richards & Notaro who is representing FMA. "Akin Gump's breaches are all the more shocking in light of the fact that FMA's CEO suffered from known health issues, which impeded his ability to detect Akin Gump's wrongdoing."

Although Akin Gump is listed as the sole defendant, the lawsuit names former and current lawyers at the firm. It alleges that Heidi Liss, a former senior counsel, used FMA's funds to pay thousands of dollars off her credit card, including $2,788 worth of Broadway tickets to see "Book of Mormon" and "Kinky Boots."

Liss also allegedly worked with other Akin Gump lawyers to get her then-22-year-old daughter, Natasha Stein, hired as Thunayan Al-Ghanim's personal assistant with a salary of $120,000. Liss and Stein took a trip to the Cayman Islands under the pretenses of doing work for FMA, but it was actually a family vacation, the suit alleges.

Akin Gump fired Liss following an internal review in 2016, finding she violated several rules of professional conduct, misappropriated and co-mingled funds, and created a conflict of interest in her representation of the company, according to the lawsuit.

"Akin Gump admits that these and other actions 'did not comport with the firm's policies and ethical requirements.' This is an understatement," Richards said. "FMA seeks to hold Akin Gump accountable for its actions, which have harmed not just a business, but also the closely knit family behind that enterprise."

The lawsuit said Akin Gump should have referred both Liss and Lawrence Lamade, who, as Akin Gump's supervising and billing partner for both FMA and Thunayan, allegedly failed to supervise Liss, to state attorney disciplinary authorities. The firm determined Lamade did not violate any rules of professional conduct, the suit says; Lamade is now a lawyer at Furey, Doolan & Abell in Bethesda, Maryland.

In a statement responding to the lawsuit, an Akin Gump spokesperson said the firm discovered in late 2015 that Liss "had engaged in highly unethical and improper conduct in connection with the representation of FMA," describing the event as "painful for all at the firm who work to uphold our commitment to excellence and integrity."

"The firm immediately conducted an investigation, disclosed the results to FMA, terminated Ms. Liss, made appropriate reimbursements, and asked FMA to consent to the firm's reporting her to disciplinary authorities," the Akin Gump statement said. "FMA declined, which prevented the firm under applicable disciplinary rules from reporting the misconduct. We have made—and will continue to make—every effort to remediate any remaining harm FMA has suffered."

Liss did not respond to a request for comment; her contact information with the New York state court system is the same as Vista Global Advisors, which Thursday's complaint alleges is a company she used to funnel money from FMA to herself. Lamade did not respond to a request for comment at his new firm.

In addition to malpractice, the complaint alleges breach of fiduciary duty, constructive fraud and unjust enrichment, among other claims.