Former Attorney Nets 2 More Years in Prison for Lying to Investigators
After pleading guilty to her role in a pump-and-dump stock scheme and agreeing to pay restitution, a Colorado attorney attempted to hide nearly $47,000 in cash.
December 10, 2018 at 12:52 PM
3 minute read
A Connecticut judge tacked on two more years to a former Denver attorney's prison sentence for lying to investigators and hiding funds after she was ordered to pay restitution for a “pump and dump” stock scheme.
Authorities said former attorney Diane Dalmy, 63, orchestrated the scheme with a Connecticut attorney and Suffield man. Dalmy was resentenced Friday afternoon by U.S. District Judge Jeffrey Meyer to five years in prison followed by three years of supervised release.
Dalmy was originally sentenced in May to three years in prison and ordered to pay $2 million in restitution for her role, but was resentenced because investigators said she lied about her financial assets by hiding about $47,000 in cash to avoid paying restitution.
Court papers said Dalmy used her position as an attorney to assist others in defrauding thousands of investors through the scheme. Dalmy allowed her co-conspirators to write falsified opinion letters in her name.
According to the government, Dalmy conspired with Hartford attorney Corey Brinson and Suffield resident Christian Meissenn, among others. Both Brinson and Meissenn were recently sentenced to three years in prison.
According to court papers, Dalmy performed securities-related legal work on behalf of several public companies, including Fox Petroleum and Mammoth Energy Group, a company that later became known as Strategic Asset Leasing.
Dalmy also provided co-conspirators with capital by advancing money which belonged to other clients of her law practice, the government said. Dalmy laundered approximately $825,000 through a bank account for a private company she helped incorporate, and her trust account.
Dalmy pleaded guilty to one count of conspiracy in February. The next month, Dalmy provided the court with a financial affidavit that required her to disclose all of her finances. After her original sentencing in May and before her reporting to prison in June, Dalmy attempted to hide the $47,000 in cash, prosecutors said.
In its Nov. 16 resentencing memorandum, the government wrote, “It is apparent from the defendant's conduct and her recorded statements that her expressions of remorse at the time of her initial sentencing were insincere.”
Dalmy's attorney, Robert Casale, moved for community service instead of additional prison time.
“The government's position is straightfoward—max her out,” Casale wrote in a resentencing memo. “The defense suggests that it might be more appropriate to add a 200-hour community service condition to her supervised release.”
A check of the Colorado Office of Attorney Regulation Counsel shows that Dalmy's law license had been suspended for nonpayment of an active fee. Brinson, authorities said, surrendered his law license in November 2016.
Casale, a Guilford-based solo practitioner, did not respond to a request for comment.
In addition, Thomas Carson, a spokesman for the U.S. Attorney's Office in Connecticut, had no comment beyond what was in the court records.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllAfter 2024's Regulatory Tsunami, Financial Services Firms Hope Storm Clouds Break
Trump Mulls Big Changes to Banking Regulation, Unsettling the Industry
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250