SEATTLE — Sentencing for a former Everett attorney who admitted swindling his clients has been delayed a month because of the complex financial and legal tangle surrounding his failed scheme.
Barry Hammer, 62, is now scheduled to learn his fate Oct. 10 before U.S. District Judge Marsha Pechman.
The ex-attorney pleaded guilty in May to a single count of wire fraud. He faces years in federal prison.
As part of the plea agreement in U.S. District Court in Seattle, Hammer admitted engaging in a scheme to defraud clients of up to $1 million by offering bogus tax shelters and retirement funds through his law practice. Hammer admitted he entered into business dealings with his clients, not warning them that money actually was going into his pockets and that their investments, in many cases, were bankrolled by little more than his promises to pay.
Hammer’s sentencing originally was scheduled for today. Lawyers on both sides of the case asked Pechman for more time.
The delay is necessary in part because of the complex $13 million bankruptcy that in part led to Hammer’s criminal conduct being unveiled, court papers filed in August show.
“The docket on one of the bankruptcy proceedings alone is over 100 pages,” Hammer attorney Russell Aoki wrote. “It reflects thousands of pages of documents, which are tied into the factual basis that supports his guilty plea.”
Probation officials need more time to investigate, he added.
Hammer’s law firm was a fixture in downtown Everett for years, with offices across the Snohomish County Courthouse. 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 in 2005 gave up his law license in lieu of disbarment. He acknowledged evidence that showed he’d entered business dealings with multiple clients and made misrepresentations about the risks.
Evidence suggested Hammer had been using his companies’ assets “as his own ‘piggy bank’ ” to cover debts owed to an increasingly large group of investors, a court-appointed trustee told the judge in Hammer’s bankruptcy.
Federal prosecutors charged Hammer with seven federal crimes: five counts of mail fraud and two counts of wire fraud. Under the plea the remaining six counts will be dismissed if Hammer sticks to the agreement at sentencing. He faces a maximum of 20 years in prison.
Reporter Scott North: 425-339-3431 or north@heraldnet.com.
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