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OLR alleges lawyer stole $359,990 from his mother’s trust

By: Erika Strebel, [email protected]//February 2, 2015//

OLR alleges lawyer stole $359,990 from his mother’s trust

By: Erika Strebel, [email protected]//February 2, 2015//

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Attorney Anthony Karabon faces a two-year suspension of his law license from allegations that he stole money from his mother’s trust account.

In an Office of Lawyer Regulation complaint filed Wednesday, the agency alleges Karabon, who was the trustee of his mother’s trust after his father died, in 2013 transferred at least $359,990 to himself from the trust’s assets, although the trust’s terms did not allow him to make disbursements to himself.

According to the complaint, a social worker employed by the Ozaukee County Human Services and Adult Protective Services conducted an investigation and found that Karabon, while serving as a trustee of the trust, allegedly disbursed about $360,000 from the trust to himself.

In 2013, the social worker met with Karabon’s mother, Bernadine Karabon, who allegedly had been unaware and was upset about the amount taken from the trust. According to the complaint, Karabon admitted to his mother that he had a gambling problem and would repay the trust.

On Jan. 7, 2014, the social worker filed a complaint with the OLR. In detailing the three counts of alleged misconduct, the OLR alleges that Karabon borrowed $300,000 from his brother-in-law, Terry Zadra, which was used to repay $220,000 to the trust. However, Karabon initially told the OLR that the money was from liquidation of stock and other assets, and nothing was from his family.

The OLR also alleges that Karabon, on March 18, filed a trustee’s account with the Ozaukee County Circuit Court from Jan. 1, 2013, to Dec. 31, 2013, but he failed to disclose the disbursements made to himself.

The final count of misconduct, according to the OLR, stems from the fact that as of Aug. 21, Karabon still owes at least $139,000, not including interest on the initial $359,990. Also, though Karabon allegedly told the OLR that he paid $50,000 to the trust on Oct. 17, the agency has neither received proof nor the source of the payment. The OLR is asking the Wisconsin Supreme Court to order Karabon to pay full restitution.

The Wisconsin and Texas bars did not have current contact information for Karabon, and he could not be immediately reached for comment Monday.

Karabon previously worked for Greenfield-based The Boucher Group. He now lives in McKinney, Texas, according to the OLR complaint. He graduated from the University of Wisconsin Law School and was admitted to practice law in Wisconsin in 1985.

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