Source: Office of United States Attorneys
HUNTINGTON, W.Va. – Todd M. Chapman, 57, of Huntington, pleaded guilty today to bank fraud. Chapman admitted that he embezzled at least $602,000 from a Huntington law firm while its officer manager, including funds from client trust accounts and proceeds from a Paycheck Protection Plan (PPP) loan authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, Chapman was employed as the firm’s office manager for approximately 30 years until April 2022. During this time, Chapman was authorized to write checks from the firm’s bank accounts for legitimate business expenses.
From approximately 2016 through approximately 2022, Chapman personally enriched himself by writing unauthorized checks from the law firm’s accounts and client trust accounts to himself. As part of his guilty plea, Chapman admitted that he carried out his scheme by using the trust he gained from his 30-year tenure with the firm to obtain complete and exclusive control of its day-to-day finances. To conceal or disguise the embezzlement, Chapman funneled money he stole from clients through the firm’s operating accounts, forged signatures on checks, created false documents, made false statements under oath in civil lawsuits by former firm clients, and made false statements to federal law enforcement agents investigating the loss of client funds at the firm.
Chapman embezzled at least $409,000 from the estates of three deceased firm clients, $100,000 that one minor client was supposed to receive upon turning 18, and $15,838.84 of an initial $20,000 settlement deposit for another minor client who suffered an injury as an infant. Chapman also embezzled $13,686.21 from a $20,375 PPP loan that the firm legitimately received to provide emergency financial aid during the COVID-19 pandemic. Chapman admitted that he spent the embezzled funds for his personal enjoyment and lifestyle.
Chapman is scheduled to be sentenced on December 1, 2025, and faces a maximum penalty of 30 years in prison, up to five years of supervised release, and a $250,000 fine. Chapman also owes $602,000 in restitution.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Andrew J. Tessman and Erik S. Goes are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:25-cr-121.
###