SoCal Lawyer Gambled Client Funds, Lied About Terminal Cancer

A lawyer from Manhattan Beach, Calif., who stole $116K from clients to gamble and then pretended he had terminal cancer, has been disbarred, the State Bar Association said Monday.

Sergio Valdovinos Ramirez’s misappropriation of funds was described as “unrelenting” in a June hearing of the State Bar Court of California.

“Mr. Valdovinos Ramirez cheated his clients out of their funds, in part, to feed his gambling habit; he then showed no remorse and lied about a life-threatening illness to avoid taking responsibility for his misconduct,” said Chief Trial Counsel George Cardona. “Disbarment is entirely appropriate in this case.”

Bad Checks

Ramirez was found culpable of 19 counts of ethics violations. In one case, he siphoned $73,965 in advance fees into his checking account that was meant for a client’s representation in a conservatorship matter.

He wrote the client a check for the amount, knowing that it would bounce.

Ramirez spent $886,535 on gambling at various California casinos between February 2021 and February 2023. He also used client funds for Lyft rides, utility payments, and purchases at restaurants and gas stations, according to court documents.

Nonexistent Oncologist

During his disciplinary trial, Ramirez told investigators he was dying of cancer to justify various delays in his work for clients. He claimed he was being treated at the City of Hope hospital by an oncologist named Dr. Stephen Chang, who didn’t exist.

This case is about an attorney’s egregious acts of dishonesty that occurred in his practice and continued through his disciplinary trial,” the State Bar Court Review Department wrote in its June opinion.

“This misconduct was exacerbated by the additional dishonesty in which he engaged,” read the ruling. “Valdovinos Ramirez lied to his clients to stall the discovery of his misappropriation and failure to follow through on work he had assured clients he performed.”

Ramirez was ordered to pay restitution to five of his former clients, plus 10% interest per year.