Two disbarred North End lawyers indicted on charges they kept client money for themselves

A Suffolk County grand jury has indicted two lawyers on charges they sucked more than $1.4 million out of client accounts, the Suffolk County District Attorney's office reports. One of them is also charged with making up fake clients in a class-action lawsuit against the owners of a Danvers chemical plant that blew up in 2006, the DA's office says.

Michael Germano, 49, of Wilmington, now faces five counts of larceny, one count of conspiracy to commit larceny, one count of attempted larceny, two counts of embezzlement by a fiduciary, and 17 counts of uttering a false document. Peter Lagorio, 57, of Lynnfield, now faces three counts of larceny, one count of conspiracy to commit larceny, one count of attempted larceny, and 17 counts of uttering a false document.

Lagorio was disbarred last October; Germano in February of this year. Lagorio had also been formally admonished by the Supreme Judicial Court in 2007 in another matter.

Both worked in the same building at 63 Atlantic Ave. in the North End, Germano on personal-injury claims, Lagorio on class-action lawsuits - including one against CAI, Inc. for the Danvers explosion, the DA's office says.

According to prosecutors, the two drained most of the $1.4 million out of accounts that are supposed to be used to pay clients settlements due from lawsuits.

Some of the money came directly from client accounts; the rest from accounts set up to handle disbursements from finance companies that advance money to plaintiffs in advance of settlements.

In these cases, Germano and Lagorio allegedly provided the companies with false evidence of settled claims. In Germano's case, he allegedly altered closed settlements from past clients and kept for himself the money paid to him by the finance companies.

In its disbarment ruling, the Supreme Judicial Court said Lagorio used money from new settlements to pay off obligations from old ones.

Germano also embezzled $180,000 from a trust account that was supposed to pay two victims of car accidents, the DA's office says.

The two are scheduled for arraignment in Suffolk Superior Court on July 3.

Innocent, etc.