Ex-Vedder Price Shareholder Accused of Faking Invoices, Double-billing
Attorney disciplinary authorities say Robert Hankes was fired from the firm after he allegedly used fabricated invoices to channel more than $130,000 into a bogus account.
January 14, 2020 at 02:22 PM
3 minute read
Vedder Price fired one of its shareholders for allegedly fabricating invoices and misusing a dormant client account to cover thousands of dollars in golf fees and other expenses, according to a complaint by the Illinois Attorney Registration and Disciplinary Commission.
Chicago-based Robert Hankes, who was member of the Am Law 200 firm's global transportation finance team until October, fabricated invoices leading to more than $130,000 fraudulent payments to the firm, the Dec. 30 complaint alleges.
The complaint asserts that while Hankes was employed by Vedder Price, the firm did work for a unnamed financial institution and sometimes billed fees for services to the financial institution's customers, as the client directed.
Sometime before January 2018, the firm billed about $23,783 in work for a customer of the financial institution. Hankes allegedly reactivated an unrelated client account, fabricated an invoice for the billed amount, and deposited the payment as a credit into the reopened account, which he controlled. Hankes also billed the financial institution with the correct billing number and applied the payment to its account.
The Illinois ARDC alleges that during the next year and a half, Hankes fabricated eight more invoices and double-billed the financial institution as well as its clients. The additional payments—totaling $108,674—were credited to the dormant account, and at least some payments were sent directly to Hankes's home, the ARDC said.
During this time, Hankes also charged the dormant account for expenses such as golfing, dining and travel and was reimbursed at least $79,790, the ARDC alleges. Hankes did not tell anyone at Vedder Price or any clients about the fabricated invoices or double-payments, and the firm did not authorize him to use the account for expenses.
Hankes did not respond to requests for comment. According to the ARDC's record, he is now voluntarily inactive and not licensed to practice in Illinois.
As a result of the alleged fraud, Vedder Price terminated Hankes on Oct. 2, 2019, according to the complaint. He joined the firm in 2005 as a summer associate, and he was named shareholder in April 2014. A certified public accountant, he worked as an auditor at Arthur Andersen and was a financial analyst with Winston & Strawn prior to joining Vedder Price.
The complaint requests a hearing panel to make findings of fact, conclusions of fact and law and disciplinary recommendations.
Vedder Price's general counsel said the firm refunded clients who were double-billed but declined to provide further comment.
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