HUNTINGTON – A longtime office manager of a Huntington law firm has pleaded guilty to embezzling at least $602,000 from the firm.
Todd M. Chapman, 57, of Huntington, pleaded guilty August 18 to bank fraud. He embezzled funds from client trust accounts and proceeds from a Paycheck Protection Plan 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 Tyson & Tyson Law’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 2016 through 2022, Chapman wrote unauthorized checks from the law firm’s accounts and client trust accounts to himself. As part of his guilty plea, Chapman admitted 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.
He 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 the firm legitimately received to provide emergency financial aid during the COVID-19 pandemic. He admitted he spent the embezzled funds for his personal enjoyment and lifestyle.
Chapman is mentioned a few times in court documents from 2022 when attorney David R. Tyson was disbarred for billing more than 24 hours in a day multiple times as a public defender.
He is scheduled to be sentenced December 1 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 U.S. Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation and the Cabell County Sheriff's Office. U.S. District Judge Robert C. Chambers presided over the hearing. Assistant U.S. Attorneys Andrew J. Tessman and Erik S. Goes are prosecuting the case.
Southern District of West Virginia case number 3:25-cr-121
