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Law Firm Accused of Conversion by Secured Creditor Over Settlement Funds

COOK COUNTY RECORD

Tuesday, May 13, 2025

Law Firm Accused of Conversion by Secured Creditor Over Settlement Funds

Federal Court
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U.S. District Court for the Northern District of Illinois | Official website

Scott Zucker has filed a lawsuit against the law firm Johnson & Bell, Ltd., accusing them of conversion, breach of fiduciary duty, fraud, and seeking an accounting. The complaint was lodged in the United States District Court for the Northern District of Illinois on May 8, 2025. Zucker alleges that Johnson & Bell wrongfully withdrew $500,000 from their client fund account after a settlement was reached in a lawsuit involving CannaBoss, LLC.

The case revolves around a financial transaction between Zucker and CannaBoss, LLC. On July 31, 2019, CannaBoss and associated parties agreed to pay Zucker $2.2 million plus interest for services rendered. This agreement was secured by a promissory note and security agreement granting Zucker first priority rights to CannaBoss's assets. Johnson & Bell allegedly had knowledge of this arrangement but chose to disregard it when they withdrew the settlement funds without authorization.

Zucker claims that Johnson & Bell's actions were intentional and willful breaches of their fiduciary duties. The funds in question were deposited into an IOLTA account managed by Johnson & Bell after settling a lawsuit against Arthur Curtis for $500,000 on June 15, 2023. Despite being aware of Zucker's secured interest through UCC filings and direct communication with Zucker’s legal representatives at Jones Day, Johnson & Bell allegedly converted these funds for their own use.

In his complaint, Zucker is seeking compensatory damages equivalent to the misappropriated amount of $500,000 as well as punitive damages due to the intentional nature of the alleged misconduct. He also demands prejudgment interest and reimbursement for attorneys' fees incurred during this legal battle.

The attorneys representing Scott Zucker are Adrian Vuckovich from Collins Bargione & Vuckovich based in Chicago. The case has been assigned Case ID: 1:25-cv-05123.

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