Todd M. Chapman, a 57-year-old resident of Huntington, West Virginia, pleaded guilty to bank fraud after admitting to embezzling at least $602,000 from a local law firm where he worked as office manager for about three decades. The funds included money taken from client trust accounts and proceeds from a Paycheck Protection Program (PPP) loan provided under the CARES Act.
Court documents and statements revealed that Chapman had the authority to write checks for legitimate business expenses but used this position to write unauthorized checks to himself between 2016 and 2022. He exploited his long tenure at the firm to gain exclusive control over its finances.
As part of his plea, Chapman admitted he concealed his actions by moving stolen client funds through the firm's operating accounts, forging signatures on checks, creating false documents, making false statements under oath in civil lawsuits filed by former clients, and providing false information to federal investigators examining missing client funds.
Chapman acknowledged embezzling $409,000 from the estates of three deceased clients of the firm. He also took $100,000 intended for a minor client upon reaching adulthood and $15,838.84 from an initial settlement deposit meant for another minor who was injured as an infant. Additionally, he misappropriated $13,686.21 out of a $20,375 PPP loan that was supposed to help the firm during the COVID-19 pandemic. Chapman said he spent these funds on personal expenses.
Sentencing is set for December 1, 2025. Chapman faces up to 30 years in prison along with five years of supervised release and a possible fine of up to $250,000. He is also required to pay restitution totaling $602,000.
Acting United States Attorney Lisa G. Johnston announced the plea and praised both the Federal Bureau of Investigation (FBI) and Cabell County Sheriff's Office for their work on the case.
United States District Judge Robert C. Chambers presided over the hearing while Assistant United States Attorneys Andrew J. Tessman and Erik S. Goes are prosecuting.
Further details can be found on PACER by searching Case No. 3:25-cr-121.
"Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff's Office."
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