Philip James Layfield, 44, a personal injury attorney, was indicted on federal charges accused of stealing the majority of a multi-million dollar settlement, most of which should have been paid to the victim of a car accident.

Layfield was arrested in New Jersey late April, when he returned to the United States from Costa Rica, where he relocated when his law firm Layfield & Barrett located in Los Angeles faced declining revenues and he chose to close it.

“Around that time, according to the indictment, Layfield took a number of steps that defrauded his clients, including filing unnecessary litigation to trigger increased attorney’s fees, settling personal injury cases without advising L&B clients, and stealing settlement funds that should have been paid to clients”, explains the press release of the Department of Justice, U.S. Attorney’s Office of the Central District of California.

“The indictment specifically alleges that Layfield entered into an agreement to represent an individual who was struck by an automobile in Orange County in 2016 and suffered significant injuries. After negotiating a $3.9 million settlement related to the accident, Layfield allegedly misappropriated most of money due to the victim – approximately $2 million. The indictment alleges that he transferred some of the victim’s share to his personal bank accounts and some on L&B payroll. The indictment states that the car accident victim received only $25,000 of the settlement proceeds”.

Layfield, who is also certified public accountant, is charged with mail fraud and two counts of money laundering.