Former Tacoma Lawyer Sentenced for Embezzling from Elderly Client: A Cautionary Tale for Families and Fiduciaries

Source: https://www.fox13seattle.com/news/tacoma-lawyer-embezzles-elderly-client

Financial abuse remains one of the most devastating — and often overlooked — forms of exploitation impacting vulnerable adults. A recent federal case involving a former Tacoma attorney underscores how quickly trust can be violated, how long such fraud can continue undetected, and why proactive oversight of financial arrangements is essential.

A Lifeline Turned Into a Target

The victim in this case, an elderly woman, received a $1.66 million settlement after being critically injured as a passenger in a motorcycle crash. The funds were meant to give her stability, resources for medical care, and the opportunity to rebuild her life.

In 2010, former attorney Colby Parks became the trustee of her living trust — a position of significant responsibility. His role was to protect her finances while she recovered. Instead, he exploited his position for personal gain.

A Decade of Quiet Theft

Federal investigators later determined that over the seven years Parks acted as trustee, he made numerous transfers from the trust into his personal accounts. What began as unauthorized withdrawals escalated into systematic siphoning of the victim’s money.

By the time investigators pieced together the true scope:

• The client’s trust, which once held over $1.6 million, had been drained to just $20,000.

• Parks convinced her in 2018 to obtain a reverse mortgage, promising to restore the trust, but instead redirected those funds to himself.

• By the end of 2019, the account held just $15, forcing the victim to sell her home.

• Even the home-sale proceeds were intercepted, with Parks falsely claiming repayment for a fabricated “loan.”

Throughout this period, Parks allegedly refused to provide financial statements or invoices — a major red flag in fiduciary relationships.

The Human Cost

The financial destruction was only part of the damage. The victim, already recovering from a life-altering accident, was left without stability, security, or the resources she depended on.

Investigators revealed that Parks consistently blamed the victim for “overspending,” when in fact she received only a small fraction of her own settlement. The depletion of funds was not due to her choices — it was the direct result of Parks’ secret transfers and personal enrichment.

In total:

• Parks diverted more than $880,000 from accounts he managed.

• He paid himself at least $530,000 more than he was entitled to as trustee.

• Despite repaying $530,000 in restitution, the financial and emotional harm spanned roughly a decade.

The Washington State Bar later confirmed that had Parks not resigned, he would have been permanently disbarred.

How the Case Came to Light

Washington State Adult Protective Services first recognized signs of financial abuse and elevated the case for further investigation. Their actions ultimately led to a full federal inquiry.

This case highlights the importance of third-party oversight, especially when an individual is dependent on someone else to manage their financial affairs.

Warning Signs of Financial Exploitation

Cases like this rarely begin with large transfers. Instead, they escalate over time. Warning signs may include:

• A trustee or advisor refusing to provide financial statements

• Missing invoices or unexplained expenses

• Sudden changes in account balances

• Pressure to take out loans or reverse mortgages

• A fiduciary becoming defensive about oversight

• A vulnerable individual appearing confused about their own finances

If you notice any of these indicators, take action immediately.

What You Should Do If You Suspect Fraud or Embezzlement

Financial abuse can continue for years if no one steps in — as this case tragically demonstrates. Early intervention can prevent further loss and help build a strong case for authorities to act.

If you suspect fraud, embezzlement, or financial misconduct:

➡️ Contact a qualified forensic accountant immediately.
A forensic accountant can examine financial records, trace transactions, identify irregularities, and compile evidence in a format suitable for law enforcement and prosecutors.

➡️ Do not confront the suspected individual directly.
This may cause them to destroy records or hide assets.

➡️ Preserve all financial documents.
Statements, emails, and even handwritten notes can be critical evidence.

➡️ Loop in a trusted family member or advisor.
Vulnerable adults should never navigate these situations alone.

Time is critical, and professional financial analysis often determines whether stolen funds can be recovered — and how quickly authorities can take action.

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Pivotal Forensic Accounting & Audits: Here to Protect You

At Pivotal Forensic Accounting & Audits, we specialize in uncovering financial misconduct, tracing funds, and supporting victims and families through the complex aftermath of fraud.

If you believe something isn’t right, trust your instincts — and let us help.

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