HARRISBURG - A Lancaster County attorney who pleaded guilty in 2011 to embezzling more than $30,000 from clients has been slapped with a five-year suspension by the Pennsylvania Supreme Court, based on recommendations from a three-member panel of the Disciplinary Board.
The suspension of Herbert P. Henderson's license is retroactive beginning Aug. 9, 2012, according to the order submitted Thursday. The Elizabethtown attorney is also in the midst of a three-year probationary period after serving a six-month sentence in federal prison for his role in the embezzling scheme.
According to court documents, Henderson played a part in a larger bankruptcy fraud scam with his former partner, Kenneth Reidenbach, that bilked more than $100,000 from several clients.
According to the indictment, Reidenbach, represented one individual in a bankruptcy proceeding and counseled the client to place nearly $40,000 in real estate proceeds into a law firm account controlled by Reidenbach and then concealed those proceeds from the bankruptcy court.
The original indictment, filed Dec. 9, 2010, charged Reidenbach and Henderson with conspiracy to commit bankruptcy fraud and concealing assets in bankruptcy by concealing more than $51,000 of clients’ real estate sales proceeds from the bankruptcy court.
Hednerson pleaded guilty in 2011 and testified against Reidenbach, who received a 33-month sentence in federal prison.
According to officials, Henderson left the law firm after the first three incidents, claiming responsibility for $31,000 of the total amount stolen. U.S. District Court Judge James Knoll Gardner also ordered a $1,000 fine at the time of the sentence, and Henderson and Reidenbach paid out a settlement to the victims.