Messner Reeves LLP Faces Mounting Questions Over $8.3 Million in Missing Client Escrow Funds, Contradictory Sworn Affidavit, and Ties to Federally Indicted Wire-Fraud Felon
America ı By Rachel Moore
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Messner Reeves’ Public Statement — Still Live On The Firm’s Website
On February 22, 2024, Messner Reeves published a statement on its corporate website at messner.com responding to the Emerald Consulting Partners litigation. The statement remains live at the time of this writing. It reads, in part:
“Messner Reeves LLP deeply values its reputation for excellence and, therefore, issues this statement in response to the Emerald Consulting Partners LLC lawsuit. At no time have the funds at issue in the lawsuit disappeared or become lost. The legal requirements regarding the return of the funds have not been satisfied, and the firm is legally prohibited from releasing the money at issue. The Plaintiff is aware of these circumstances, yet has falsely alleged otherwise.”
The statement does not address the discrepancy between the firm’s position and the publicly filed Northern Trust account statements, nor does it explain on what legal basis the firm contends it is “legally prohibited” from returning client escrow funds.
The Bloomberg and Law360 Coverage
The disappearance of client deposits from Messner Reeves’ trust account was previously covered by Bloomberg Law in an article examining how multiple small businesses found themselves unable to recover money wired to the firm under BELOC-style advance-fee arrangements. Law360 has also reported on the dispute.
The plaintiffs’ claims now span multiple federal court dockets, including the Utah federal action in which Smith’s contested February 2025 affidavit was filed.
Open Questions
Several questions about the matter remain unanswered on the public record:
- Why does Smith’s sworn February 2025 affidavit place the depletion of the trust account nearly a year after the publicly filed Northern Trust statements show it actually occurred?
- On what authority did Messner Reeves transfer client escrow deposits to Sahara Las Vegas Corp., Valley Bank of Nevada, and California car dealerships?
- What is the relationship, if any, between Messner Reeves and Daniel Chartraw — the federally indicted wire-fraud defendant whose personal accounts received six-figure wires from the firm’s trust account in 2023?
- Why did a Messner Reeves employee, using a Messner Reeves email address, organize a Wyoming LLC called Titan Financial, LLC in November 2023 — months after the trust-account deposits had already been disbursed?
- Has Messner Reeves submitted a claim to its professional liability or fidelity insurance carrier in connection with the loss of the $8.345 million?
Messner Reeves LLP did not respond to a request for comment prior to publication.
This article is based on the federal indictments in United States v. Chartraw (Case Nos. 2:12-cr-00184 and 2:24-cr-00311, E.D. Cal.); the February 2025 sworn affidavit of James W. Smith filed in the United States District Court for the District of Utah (Case No. 2:24-cv-00520, ECF No. 206-2); publicly filed Northern Trust Company account statements for COLTAF account ending 8494; the November 7, 2023 Articles of Organization for Titan Financial, LLC on file with the Wyoming Secretary of State; the public statement published on the Messner Reeves LLP website on February 22, 2024; and prior reporting by Bloomberg Law and Law360. All allegations described as such remain allegations unless and until adjudicated.
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