California Attorney Booked For Embezzlement

Police booked California probate attorney William Peter Terhune on suspicion of embezzlement and taking over $200,000. Terhune is being held on $1 million bail, and law enforcement officials believe they have located other possible victims.

Terhune was the attorney and administrator of the estate of Junko S. Hensling. Hensling’s only beneficiary lives in Japan, and after Hensling’s death in 2007, Terhune sold Hensling’s estate for $275,839, giving nothing to the beneficiary. Instead, Terhune deposited $220,000 of the proceeds into his personal bank account and later look another $55,000 from the estate. Terhune told his paralegal that he took the money because he was not able to obtain a small business loan. Terhune also told his paralegal that he created promissory notes to hide his misappropriation.

After the beneficiary complained to the California bar, Terhune responded by denying any wrong doing. In his written response, Terhune stated that the estate’s assets had “been held and maintained for the benefit of the estate and [would] ultimately be distributed to and for the sole benefit of [the beneficiary.]” Terhune also stated that he invested the estate’s assets in high-earning investments and provided copies of nineteen promissory notes he claims are payable to the administrator of the estate.

See Pismo Beach attorney accused of $300,000 embezzlement, California Bar Journal, August 2011.