Virginia lawyer stole from older clients, donated to charity to impress boss, feds say
A former lawyer in Virginia is accused of stealing money from older clients to pay for a house and donate to charity in an effort to impress her boss.
Cherie Anne Washburn, 45, pleaded guilty Friday to wire fraud and making false statements, the U.S. Attorney’s Office for the Western District of Virginia said in a news release. She faces between six months and two years in prison, according to the plea agreement.
Washburn declined to comment through a defense attorney on Monday.
A grand jury indicted Washburn on 13 counts — including for wire fraud, mail fraud and making false statements to a mortgage lender — in October. According to the indictment, Washburn was working in Forest, Virginia, as an attorney specializing in elder law and estate planning at the time of the alleged fraud.
In late 2015 and early 2016, Washburn was granted power of attorney for two elderly clients referred to her by a care management company that provides services to senior citizens.
The clients are referred toas C.A. and D.F. in the court documents.
Client funds paid for house, credit card bills
Prosecutors detailed a series of transactions beginning in November 2016 from the victims’ accounts to Washburn. She reportedly used the money on credit card payments and other personal expenses.
In one such transaction, Washburn is accused of writing a check to herself for $40,000 from C.A.’s account for purported funeral expenses. But prosecutors said most of the money was never used for C.A.’s benefit.
Instead, Washburn reportedly used it to invest in a real estate project. The project was spearheaded by her boss at a local nonprofit, where Washburn was hired as an attorney and grant writer in 2017, according to the indictment.
That same boss was also the CEO of a Christian-centered nonprofit in Cambodia. Using C.A. and D.F.’s accounts, Washburn is accused of donating upwards of $32,000 to his nonprofit over seven months in 2017 and 2018.
“The above donations benefited Washburn by enhancing her standing with her employer,” prosecutors said.
In 2018, prosecutors said Washburn bought a house in Lynchburg. In order to get approved for a loan, the mortgage company reportedly told her to pay off one of her credit cards.
Washburn used D.F.’s money to pay off the card, the government said, and lied to the mortgage company by claiming C.A. was her great-aunt and that she had given her $40,000 to put toward the house.
Washburn told the court during Friday’s hearing that she intended to let her client move in to the house, The News & Advocate reported.
“I was overwhelmed at that time,” she said, according to the newspaper. “I was not keeping good records or notes and I transferred some of her money to cover some of my personal expenses. I always intended to pay it back. I know that that was wrong.”
Washburn is accused of taking an additional $3,000 from C.A. for a deposit on the house. When the mortgage company asked her where she got the money, Washburn reportedly said it was from her great-aunt to pay for a future adoption.
Losing her license
The Virginia State Bar opened an investigation into Washburn in 2018 after receiving a complaint of professional misconduct, court documents show. She consented to having her license revoked in a signed affidavit admitting to misappropriating client funds.
Washburn sought to have that affidavit, which contained “incriminating admissions,” excluded from the government’s fraud case, which prosecutors opposed.
A judge ultimately ruled in the government’s favor and allowed the affidavit to be used at trial.
Her guilty plea comes nearly two weeks after prosecutors submitted a list of evidence they intended to use against her — including the affidavit, a note she is accused of coercing her client to sign that relieves her of blame for the stolen money, and her prior employment history as an assistant attorney in Campbell County.
The government said she was fired from that position for “false statements she made to her supervisor.”
As part of her plea agreement, Washburn will be required to pay her victims restitution. A sentencing date has not been set, but The News & Advance reported Washburn intends to report to U.S. Marshal’s on July 30 “in hopes of receiving sentencing credit since she’s pregnant.”
