Legal Scandal Rocks Portland: Former Lawyer Sentenced for Fraud

News Summary

Lori Deveny, a former personal injury attorney in Portland, has been sentenced to nearly 8.5 years in federal prison for defrauding clients out of over $3.8 million. The scandal has triggered changes in state legislation aimed at protecting vulnerable clients and ensuring accountability within the legal community. The case highlights the need for reforms to restore trust in the profession, as other lawyers step up to provide legitimate services.

Legal Scandal Rocks Portland: Former Attorney Sentenced for Client Fraud

The legal community in Portland, Oregon, is reeling after the sentencing of former personal injury attorney Lori Deveny, who was convicted of defrauding clients out of more than $3.8 million. Deveny, who once stood as a beacon of hope for injured parties seeking compensation, was sentenced to nearly 8.5 years in federal prison, with an order to pay $4.6 million in restitution. The fallout from her actions has sparked significant changes in state legislation aimed at protecting vulnerable clients and ensuring that similar fraud does not happen again.

The Shocking Details of Deveny’s Fraud

Between 2006 and 2019, Deveny engaged in a scheme that left over 135 clients feeling betrayed and financially ruined. Utilizing stolen funds, she indulged in a lavish lifestyle that included expenses for airline tickets, extravagant safaris, and even taxidermy. By employing various excuses, she kept her clients in the dark about the status of their settlements, leading many to believe their claims had already been resolved. Her deceitful practices included identity theft and forgery of client signatures on checks, which she wrongfully cashed.

Impact on Victims

The repercussions of Deveny’s actions stretched beyond her immediate clients, affecting their families and the wider community. Clients expressed feelings of betrayal and distress as they realized they had unknowingly trusted someone who exploited their vulnerabilities during difficult periods of their lives. For many, financial ruin became a haunting reality as they battled personal injuries while simultaneously grappling with the emotional fallout of being cheated by their own attorney.

Legislative Changes Sparked by Scandal

In response to this shocking case, significant legislative changes have been enacted in the state of Oregon. Insurers are now required to directly notify claimants when settlements occur, reducing the chance that anyone else could fall victim to a similar scheme in the future. Additionally, the Oregon State Bar is increasing payouts from the Client Security Fund to support victims and further ensure their protection.

Positive Developments in Legal Services

While the specter of fraud continues to haunt the legal landscape in Portland, Michael Colbach, a personal injury attorney and top sponsor of the Bicycle Attorney cycling team, emerges as a figure of integrity and excellence within the profession. Recently named to the 2025 Oregon Super Lawyers list, Colbach is well-regarded for his commitment to client welfare and successful advocacy for injury victims across the state. With a deep dedication to cycling and community, he has been actively involved in various local initiatives aimed at supporting those in need.

Another reputable firm, Tillmann Law Personal Injury Lawyers, also reflects a renewed commitment to upholding the highest standards in legal practice. Following a rebranding in August 2024 from Tillmann Law, this team focuses on the rights of accident victims and has successfully recovered millions for clients. Founded by Attorney Aaron Tillmann, the firm emphasizes transparent communication and robust representation for individuals navigating the complexities of personal injury cases.

Moving Forward in the Legal Community

The legal profession relies on trust and integrity, and while Deveny’s actions have shattered many lives, they have also prompted vital reforms. Clients can now feel a greater sense of security, knowing new laws are in place to protect their interests. With strong advocates like Michael Colbach and the dedicated team at Tillmann Law, the future of personal injury representation in Portland appears promising. Legal professionals across the state are now more motivated than ever to restore faith in their practice by prioritizing ethics and client advocacy.

As Portland’s legal landscape continues to evolve in the wake of scandal, one hopeful truth remains: there are many attorneys striving to provide genuinely supportive and honest services to those seeking justice.

Contact Michael Colbach at (503) 243-1900 for expert personal injury representation, or visit Tillmann Law at 101 SW Main St #1905, Portland, OR 97204, and reach them at (503) 773-3333 for further assistance.