SPRINGFIELD — An Easthampton lawyer accused of stealing $454,000 from two of his former clients and lying to federal agents pleaded not guilty to all charges in federal court Thursday.
Philip R. Williams, 49, had been held at the Franklin County Sheriff’s Office in Greenfield since his arrest Sunday. He was released by Judge Katherine A. Robertson with a long list of conditions, among them that he reside with his mother in Cummington, that he not practice law, and that he not leave the state of Massachusetts.
Prior to the arraignment and detention hearing in U.S. District Court, federal authorities were seeking to keep Williams detained until his trial, but that request was withdrawn after “reviewing all the facts,” according to U.S. District Attorney Steven H. Breslow. Federal authorities were concerned that Williams might have applied for a new passport recently but found that he had only incurred a change instead.
Defense counsel Andrew Levchuck and Breslow deliberated the conditions of the release with Roberston for nearly two hours on Thursday. Williams has been charged with three counts of wire fraud, two counts of money laundering, two counts of engaging in financial transactions where more than $10,000 of the proceeds was derived from criminal activity, two counts of tax fraud, and one count of making a false statement to a federal official.
Williams became licensed to practice law in Massachusetts in January 2002, though his current status is listed as retired by the state’s Board of Bar Overseers.
The prosecution had asked for a $50,000 unsecured appearance bond for Williams, where money must be paid if he fails to show up to his trial, but Levchuck objected.
Levchuck said that the “very stringent” conditions combined with Williams residing with his mother until the trial made the bond unnecessary.
Robertson found a compromise as she required a $10,000 appearance bond to assure that Williams would show up for his trial. She called it a “realistic amount but not an undue burden.” A family friend at the hearing signed the appearance bond.
Other conditions of Williams’ release include that he surrender his old passport to pre-trial services and that he not have any contact with a list of sealed victims provided by federal authorities.
According to the U.S. attorney’s office, Williams maintained a trust account at a Massachusetts bank where he was required to hold funds for the exclusive benefit of his clients. Federal authorities allege that Williams devised a scheme to defraud two individuals who transferred $950,000 into the trust account. Prosecutors allege Williams stole $453,695 of this money to benefit himself, family members and a pair of associates.
The charges carry sentences ranging from three years to 20 years in prison, three to five years of supervised release, and fines between $100,000 and $250,000.
Luis Fieldman can be reached at lfieldman@gazettenet.com