SEATTLE — A former Everett attorney who admitted defrauding his clients should spend nearly 3 1/2 years in federal prison for abusing his position of trust, federal prosecutors say.
Barry Hammer, 62, is scheduled to be sentenced today by U.S. District Judge Marsha Pechman in Seattle.
Hammer in May pleaded guilty to a single count of wire fraud. As part of the plea agreement, he admitted engaging in a scheme to bilk clients of up to $1 million. He offered tax shelters and retirement funds through his law practice, not warning clients that the money actually was going into his pockets or investments, that in many cases, were bankrolled by little more than his promises to pay.
Hammer’s punishment should be serious enough to deter others from taking improper chances with clients’ trust and money, assistant U.S. attorney Mark Parrent wrote in court papers.
“The defendant’s victims were entitled to assume that their lawyer was being truthful with them and acting in their best interests,” Parrent wrote the judge. “Instead, for his own purposes, the defendant abused that trust with devastating results for his clients.”
Hammer’s business dealings and law practice dissolved in a complex $13 million bankruptcy. His fraud was exposed in 2004 when a former law partner realized what was happening and reported the violations to the Washington State Bar Association. Hammer later surrendered his attorney’s license in lieu of disbarment.
The ex-lawyer’s law firm was a fixture in downtown Everett for 29 years. Under sentencing guidelines, the judge could impose more than four years behind bars, without finding special circumstances.
Hammer’s otherwise law-abiding history, his remorse and cooperation with authorities all support a sentence of two years behind bars, his attorney, Russ Aoki, wrote Pechman.
In court papers, federal prosecutors agreed with Aoki that Hammer didn’t set out to hurt his clients. But when Hammer’s real estate investments failed, he made bad decisions trying to avoid financial ruin, Aoki wrote. Hammer sought bankruptcy protection, hoping to discharge his debts and repay creditors. Instead, he remains on the hook for millions and embroiled in civil lawsuits, Aoki wrote.
“At age 62, Mr. Hammer has ended his legal career in disgrace,” his attorney wrote. “His conduct has been the subject of front-page newspaper articles, television news stories and, equally important, numerous Washington State Bar Association meetings.”
The publicity of the case “has been harsh, but at the same time it has provided a means of deterrence that is far greater than any sentence a court could impose,” Aoki wrote.
Along with the plea for leniency, Aoki submitted roughly two dozen letters in support of Hammer. They came from the man’s family, some clients, former business partners and several Snohomish County lawyers.
Reporter Scott North: 425-339-3431 or north@heraldnet.com.
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