Oklahoma City Attorney Accused of Embezzling $100,000 from Client

By Jon Jordan, NEWS 9

OKLAHOMA CITY -- Oklahoma City attorney William Reeves Cathey is accused of embezzling $100,000 from one of his clients.

According to court documents filed in Oklahoma County district court, 52-year-old Cathey confessed to embezzling $100,000 from his client, Stephan McGuigan, dating back several years.

Records show McGuigan was involved in a motorcycle accident in 2003. As a result, McGuigan was issued a check for $100,000 from State Farm Insurance. The check was issued to McGuigan on February 2, 2004. Sometime later, the money was deposited in McGuigan's client-trust account with the Bank of Oklahoma. On the same day the money was deposited into that account, Cathey is said to have withdrawn $2,800.

Court documents add McGuigan made several attempts to obtain his money, "but the suspect [Cathey] would always have an excuse as to why the funds weren't available."

Frustrated, McGuigan hired a new attorney and earlier this year learned Cathey had spent "all of the money."

The probable cause affidavit said Cathey had personal financial trouble and that is the reason he began withdrawing money from his client's account for his own personal use. The affidavit adds, "the victim [McGuigan] was made aware of this and filed a police report and a complaint with the Oklahoma Bar Association. In a response to the bar association complaint, the suspect wrote a formal letter to the bar association, where he confessed to the crime of embezzlement."