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UPDATE: Attorney Robert Graham may have falsified insurance application

Posted at 1:43 PM, Jan 04, 2017

UPDATE FEB. 13: Attorney Robert Graham's professional insurance company says Graham lied to them.  And because of those lies, the insurer claims it doesn't have to pay anything to hundreds of former clients.

New records in his bankruptcy case show the insurance policy was supposed to cover $2 million in claims against his law firm.

Court documents show nearly 400 people are looking for a payout for possible malpractice on Graham's part.

But the company claims Graham falsified his application for insurance in December 2015.

At the time, he denied knowing any "circumstance, situation, act, error or omission" that could lead to a claim against him. But the records point to the criminal indictment against Graham, charging him with theft as far back as July 2013.

The insurance company says that means Graham's policy should be rescinded and no coverage available.

UPDATE JAN. 10:  A Las Vegas lawyer who's behind bars on multiple criminal charges made his first appearance in court Tuesday.

Not guilty. That's what probate attorney Robert Graham pleaded to charges that he stole more than $2 million from three former clients. 
In court documents, the Nevada State Bar claims more than $13 million of clients' money is missing.  
Graham was somber during his initial appearance Tuesday morning, which lasted about five minutes. 
While Graham is accused of stealing millions, taxpayers are footing the bill for his defense through the Clark County Public Defender's office. 
The theft and exploitation charges are felonies, which means the 52-year-old could be sentenced to more than 30 years in prison if he's found guilty. 
And in an interesting twist, Contact 13 discovered the three victims in Graham's criminal case are also named in a bankruptcy petition filed on Dec. 31, 2016 by Graham's estranged wife, Linda.
According to court records, she claims $1.7 million in assets, including a Colorado home worth more than $1 million. But she claims the house is filled with only about $2,500 worth of furnishings, electronics and collectibles. She has no cars and only $15 in cash.   
She also claims her soon-to-be ex-husband owes her $25,715.20 in unpaid wages from her work with his law firm.  
Linda Graham claims $14,868,949.26 in liabilities, listing dozens of estates and trust accounts which appear to be former clients of Robert Graham.   
The bankruptcy petition shows Linda filed for divorce last year. Her attorney said she has no comment at this time, but denies any knowledge of or involvement in her husband's alleged criminal actions.  
Robert Graham's trial is scheduled to start in September, and the District Attorney said he could face additional charges as there could be many more victims.
CLARK COUNTY (KTNV) -- A Grand Jury secured an indictment against attorney Robert Graham on Tuesday. He faces three counts of theft and three counts of exploitation of an older/vulnerable person. Two counts of destroying evidence were also included in the indictment.
Graham faces 1-10 years for each theft charge, 2-20 years for each exploitation charge, and up to 364 days in jail for destroying evidence.
The District Attorney's office anticipates filing additional charges, as an ongoing investigation suggests that there may be more victims. Thus far, Graham's victims face an estimated loss of $2.1 million, though the Nevada State Bar says that number could be as high as $13 million.
“Attorneys are held to a high ethical standard, which evokes a certain level of trust from their clients, and the violation of that trust is unacceptable," said Clark County District Attorney Steve Wolfson. He felt it was necessary to quickly seek an indictment to preserve the evidence of the case and to prevent Graham from causing any further financial damage.
The court set bail for Graham at $5 million.
Contact 13 talked to one of those families affected by the case. 
"We're glad that he is being prosecuted so the investigation and the jail time will continue," says Bill Lee. "But it doesn't honestly do much for the emotional and financial harm that he has caused not only our family but the others with whom he was their lawyer."
The district attorney says it was important to act fast in this case to make sure Graham couldn't cause more financial damage and to preserve evidence.
Contact 13 wanted to talk to Graham, but a Las Vegas police spokesperson said he's not available for jailhouse interviews.