A Tustin attorney accused of misappropriating as much as $282 million from tens of thousands of clients is on involuntary inactive status and likely headed for disbarment after the State Bar Court recently granted a default order sought by the Office of Chief Trial Counsel (OCTC). 

Daniel Stephen March (SBN 106854) faced 27 ethics charges in two separate Notices of Disciplinary Charges (NDC) brought by OCTC alleging mass misappropriation from as many as 60,000 clients before he filed a motion in State Bar Court in May stating he would not dispute the charges. Soon after, OCTC requested an order of default against March. On July 1, 2024, the State Bar Court granted the default order, which deems “the facts of the notice of disciplinary charges admitted.” If March does not file a timely response to the default order, the State Bar Court will recommend his disbarment to the California Supreme Court.

“The level of March’s misconduct and misappropriation of client funds is stunning,” said Chief Trial Counsel George Cardona. “March completely betrayed his responsibilities as a lawyer and his sworn oath of service to his clients and to the profession. Given the scope of his offenses, the just outcome in this case is disbarment.” 

From November 2019 to March 2023, March served as the CEO, treasurer, sole board member, sole shareholder, and managing partner of Litigation Practice Group (LPG). LPG entered into fee agreements with clients, promising to provide debt relief services as well as a refund if their debts were not invalidated. Each agreement charged a flat fee to be paid in monthly installments. March is accused of misappropriating anywhere from $78 million to $282 million in advance fees paid by 40,000 to 60,000 clients. 

In a March 2023 bankruptcy filing, it came to light that March drained nearly all of his stated $282 million in assets. Between March 2020 and September 2021, March made 20 separate bank deposits totaling more than $78.8 million into a client trust account. In each case, March withdrew the funds before the month was over. As a result of this conduct, OCTC charged March with a variety of charges, including not maintaining funds as required in a client trust account, commingling funds, and committing acts of moral turpitude, dishonesty, and corruption.

March was also charged with employing a disbarred attorney to manage client funds at LPG in direct violation of professional conduct rules. In a separate charge, March was alleged to have failed to distribute nearly $1.37 million of settlement funds that he had received but did not report or disburse promptly to his client.