Probe Details Lawyer's Conduct
Misuse of Funds Appears Wider Than First Tought

By Jasmine Kripalani
Miami Herald
May 26, 2003l

More details have emerged from the Florida Bar's investigation of prominent Broward attorney Edd Kreiling, suspended over allegations that he misused client funds -- in some cases for personal use.

Harry Rosen, managing partner of Rosen, Kreiling and Eichner, a Weston law firm, said Sunday he suspects Kreiling mishandled much more than what's in the Bar's complaint.

''I suspect it's more because I see money in one account that doesn't belong there, and I can't tell if there's money missing,'' said Rosen, former mayor of Weston and Miramar.

Details emerging from the Bar's investigation paint a picture of a lawyer who shuffled clients' money from one account to another, and hid files to prevent getting caught.

Rosen said his firm cannot account for $150,000, missing from the estate of Carrie Kleiman of Sunny Isles Beach, who died last August at age 91.

FIRED FROM FIRM

Kreiling, 57, was fired last month after Rosen discovered discrepancies in trust fund accounts handled by his partner. Rosen complained to the Florida Bar, which investigated that and other complaints. Kreiling was suspended last week.

Kreiling, a former city attorney for Miramar and Golden Beach, declined to comment.

''It's a shame that he's involved in this process,'' said his attorney, Kevin Tynan. ``We're going to comply. I don't anticipate challenging the suspension. Not at the moment.''

Kreiling has 60 days before the Florida Supreme Court files for disbarment or gives him the option to resign, according to Bar investigator Joel Klaits. He could ask for a hearing to clear his name.

In its petition to the Supreme Court to suspend Kreiling, the Bar alleged that Kreiling used funds from the sale of Kleiman's home to repay the firm for money he had taken from an escrow account and used for personal expenses.

The escrow money came from the sale of vacant land owned by Simon and Douglas Development, a Broward firm. Kreiling handled the escrow account, which had a total of $86,000 from the land sale.

According to the Bar complaint, Kreiling used the escrow money to open an interest-bearing trust account in the firm's name without Rosen's knowledge, Rosen said.

Here's an example of how he used some of Simon and Douglas' escrow money, according to the Bar:

• He made two wire transfers totaling about $18,923 to pay the mortgage on his Weston Hills home.

• He used $3,500 to pay for his son's college tuition in Australia.

• He paid about $7,500 to Joseph Rosaler, his dentist and personal friend.

• One check was made out to Maurice Nanoia for $17,900. Nanoia is his mother-in-law's companion.

Kreiling told investigators it was to repay Nanoia for his daughter's tuition at Lynn University. Neither Nanoia nor Rosaler could be reached for comment.

• He paid his nephew Charles Burpee $6,000. Burpee couldn't be reached for comment.

FEELING OF BETRAYAL

In a voluntary statement to the Bar on April 23, Kreiling told investigators that the money he used to repay the firm came from his and his mother Helen's personal accounts.

But the Bar found that part of the money actually came from the $150,000 Kleiman estate.

When Rosen discovered the discrepancy in the Simon and Douglas account, he fired Kreiling, who had been with the firm for 27 years.

''I'm sick about it. I feel betrayed,'' said Rosen, who first hired Kreiling as the city attorney for Miramar in 1975.

``People in my office are trying to get through this, and we're doing everything we can to straighten things out. But the money is the smallest part. It's the personal betrayal.''

The Kleiman money came from the sale of her home, which was to be divided among her three children, who live in Illinois. They could not be reached for comment.

Kreiling misused at least $246,623 -- $300 to $100,000 at a time -- from clients going back to 1999, Bar auditor William Luongo wrote in his report.

In some cases, Kreiling hid files and pulled checks from the firm's bank statements to cover up the transfers, the Bar found.

As a partner in the Rosen, Kreiling and Eichner firm, Kreiling had access to millions of dollars, which belonged to about 100 clients, Rosen said. He wrote and executed wills and handled trust accounts for homeowners associations.

Rosen said Kreiling never gave any indication that he was having money problems. ''He knew that if he needed money, all he had to do was come and ask me,'' Rosen said.

`BREACH OF TRUST'

Clients who trusted Kreiling say they feel betrayed.

When Margaret Risley's brother, Conrad Eberhart, died a childless bachelor without a will, she hired Kreiling in April 2001 to establish herself as Eberhart's only living heir. She stood to inherit his Miami condo.

Kreiling sold the condo in July 27, 2001.

Risley said she didn't receive any money from the sale until February 2003.

''I'm very upset because I hired him in good faith,'' she said. ``I made many phone calls to him that were never returned.''

Risley, who lives in Melbourne, is among the clients who filed a complaint with the Florida Bar against Kreiling. She said she still does not have the paperwork from the condo sale.

''I need the paperwork to settle the estate. I don't know if he owes me more money. I have no paperwork to show what has come in or out,'' she said.

The Florida Bar alleges in its petition that Kreiling used money from the Eberhart estate to pay his daughter's phone bill.

Joel Fass, president of the Windmill Ranch Estates homeowners association in Weston, has known Kreiling for more than 20 years. Kreiling represented the community in a sewer project three years ago.

Kreiling handled an account set up to pay Bob Gallagher, the engineer, as he finished each project. The Bar found that Kreiling used $5,900 of his own money to pay Gallagher's $13,000 bill.

''I'm shocked and disappointed,'' Fass said. ``I considered him a friend. I think if these allegations are true, there was a serious breach of trust. He was well-respected and trusted by lots of people. We're upset by the whole thing.''

Family Claims Their Attorney Stole Inheritance By Jasmime Kripalani Miami Herald May 28, 2003 Family members who hired prominent Broward attorney Edd Kreiling to handle their deceased mother's estate have filed a police report alleging he stole nearly $200,000 of their inheritance. Kreiling, 57, suspended from practicing law last week, was in charge of distributing money from the sale of Carrie Kleiman's Sunny Isles Beach condo to Kleiman's three children. Instead, Kleiman's oldest daughter, Barbara Barnett, said Kreiling took her family's money and used part of it for personal expenses. Barnett's 91-year-old mother, Carrie, died in August after a heart attack. ''We really need restitution,'' Barnett said. ``How would you feel? It's your money, and [Kreiling] could just give it away.'' Neither Kreiling nor his attorney, Kevin Tynan, could be reached for comment. The Broward Sheriff's Office economic crimes unit is investigating, said BSO spokeswoman Liz Calzadilla. The money came from the family patriarch, said Marvin Kleiman, 67, of Schaumburg, Ill. Louis Kleiman, 83, died in 1989. He worked for some years during World War II making tools and parts for fighter jet engines, and later sold restaurant equipment, family members said. ''It's something my dad worked his entire life for,'' Marvin Kleiman said. ``He started out with nothing and how dare someone have the nerve to use it.'' Kleiman's youngest son Howard, 57, refers to the matter as ''Kreilinggate.'' He teaches journalism at Miami University in Oxford, Ohio. ''I have no knowledge of what [Kreiling's] situation was, but how can you justify holding up a bank or robbing a liquor store?'' Howard Kleiman said. ``I don't care if you're blue collar or white collar, there's no justification for taking it from people who are not here anymore. It's unacceptable.'' The family's new Miami lawyer, Michael Schlesinger, said he may file a suit against Kreiling, his firm, the bank and the title company that closed the sale of Kleiman's home. ''Our main goal is to find full restitution,'' Schlesinger said. ``If we find they were at fault, we will bring action.'' Schlesinger said $17,000 of the nearly $200,000 at a Bank of America checking account is all that remains of Kleiman's condo sale and life insurance annuity. The Florida Supreme Court suspended Kreiling, a former named partner at Rosen, Kreiling and Eichner in Weston, from practicing law. Last month, Harry Rosen, his former boss and former mayor of Weston and Miramar, discovered Kreiling was using funds for personal use and turned him in to the Florida Bar.