State Farm Wins $1.7M From Atty Who Kept Subrogation Funds

Law360, New York (June 18, 2013, 4:47 PM EDT) -- A federal judge Tuesday imposed a $1.7 million penalty on a Michigan lawyer who allegedly ripped off State Farm Mutual Automobile Insurance Co. by keeping a portion of subrogation proceeds that were supposed to have gone to the insurer.

State Farm sued Edward L. Johnson and his firm Edward L. Johnson PC in 2011 after it allegedly discovered he had withheld nearly $500,000 that belonged to the company, and U.S. District Judge Julian Abele Cook Jr. granted default judgment June 6 to State Farm based on...
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