Former paralegal for Chicago law firm admits to embezzling over $600K from bankruptcy estate accounts

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A former paralegal for a Chicago law firm pleaded guilty last week to embezzling more than $600,000 from bankruptcy estate accounts.

Becky Louise Sutton, 67, formerly of Park Forest, admitted in a plea agreement that she embezzled money from more than 40 bankruptcy estate accounts and several liquidating trust accounts in Chapter 7 and Chapter 11 matters, which she worked on, prosecutors said.

From 2009 to 2018, Sutton said she fraudulently orchestrated transfers of bankruptcy funds from fiduciary bank accounts that were intended for creditors to accounts she controlled, including her personal bank account, credit card account, student loan account and mortgage account.

In her plea agreement, Sutton also admitted that in one instance she used a company with a name similar to a true creditor to disguise her fraudulent diversion of the funds.

She pleaded guilty last Thursday to one charge of wire fraud. The conviction is punishable by up to 20 years in federal prison.