Bruce Matson is serving a prison sentence for stealing millions from the LandAmerica bankruptcy trust account. (BizSense file)
While disgraced Richmond attorney Bruce Matson serves out a prison sentence for stealing millions from a bankruptcy trust account, his former financial adviser who temporarily held some of the misappropriated funds has been dealt a lesser form of punishment.
Robert Bailey Smith IV, a longtime adviser on the LandAmerica bankruptcy case, surrendered his law and CPA licenses in recent weeks as a result of his involvement in part of Matson’s scheme.
Robert Bailey Smith IV
Smith consented to the revocation of his law license before the Virginia State Bar on Dec. 17. Then last week on Jan. 11 he voluntarily gave up his CPA designation to the Virginia Board of Accountancy.
Both disciplinary actions cited Smith’s role in the Matson matter, which began when Matson was caught emptying the $3 million LandAmerica wind-down account while serving as trustee on the long-running case.
Smith admitted to receiving $1.5 million of that money from Matson and keeping it in his personal bank account before paying it back once the scheme was brought to light.
Aside from losing his credentials, Smith notably has not been charged criminally or civilly related to the saga. The U.S. Attorney’s Office, which led the case that put Matson in prison for nearly four years, has said in court it will not prosecute Smith.
A resident of Manakin-Sabot, Smith was represented in the Virginia State Bar matter by Paul Georgiadis. For the Board of Accountancy proceeding, he was represented by Charles Midkiff and Regina Policano of Midkiff, Muncie & Ross. Neither side responded to a request for comment from BizSense this week.
Smith’s prominence in the Matson proceedings evolved over time as the case played out.
Initially, Smith was explicitly named as he and Matson were forced to explain to the bankruptcy court what happened to the $3 million in LandAmerica funds and how they ended up in their personal accounts.
Later, as Matson’s crimes began to be more fully revealed, Smith’s name no longer appeared in court records, nor was it mentioned in court proceedings. Instead, he was referred to as “Individual A” by both sides and as “co-conspirator” by Matson’s defense team.
But his involvement played a role up until the end of Matson’s case. In arguing for a lighter sentence for their client prior to Matson’s conviction in November, Matson’s attorneys described Smith as being “complicit in a significant portion of Mr. Matson’s misconduct.”
“Along with Mr. Matson, Individual A inflated the winddown budget, unlawfully accepted a self-described bonus of $1.5 million, and then lied to the bankruptcy court to cover it up,” court filings state.
Judge John Gibney, who presided over Matson’s criminal case, at least on two occasions inquired about Smith, wondering whether he was going to be charged and why he was no longer referred to by name in the records.
The U.S. Attorney’s Office said it ultimately decided to make Matson the sole focus of its investigation, describing him as having a dominant role over a compliant subordinate in Smith.
“He was a pliable self-interested tool, but acting at Matson’s direction,” Assistant U.S. Attorney Thomas Garnett said of Smith at Matson’s sentencing.
Smith was first licensed to practice law in Virginia in 1996. Two years later he put his license in associate status and had not formally practiced since that time, VSB files state.
As for his CPA license, Smith earned that in 2007, although the VBOA says he never formally worked as a CPA and the credential had been in expired status since June 2020.
He most recently had been a longtime financial adviser on bankruptcy cases, first while working for Protiviti and later on his own.
With Matson in prison and Smith’s portion of the story put to rest, only one lingering piece of the saga remains.
Matson was sued last week by the new trustee overseeing what’s left of the LandAmerica estate. The case alleges Matson breached his fiduciary duty to the estate and continues to cost the estate money while it works to unwind Matson’s scheme.
That case is pending in Richmond federal court.
Matson is currently being held at FDC Philadelphia, an administrative detention center. He is expected to eventually serve the bulk of his sentence at FCI Cumberland, a federal penitentiary with a lower security camp in Allegany County, Maryland.
Bruce Matson is serving a prison sentence for stealing millions from the LandAmerica bankruptcy trust account. (BizSense file)
While disgraced Richmond attorney Bruce Matson serves out a prison sentence for stealing millions from a bankruptcy trust account, his former financial adviser who temporarily held some of the misappropriated funds has been dealt a lesser form of punishment.
Robert Bailey Smith IV, a longtime adviser on the LandAmerica bankruptcy case, surrendered his law and CPA licenses in recent weeks as a result of his involvement in part of Matson’s scheme.
Robert Bailey Smith IV
Smith consented to the revocation of his law license before the Virginia State Bar on Dec. 17. Then last week on Jan. 11 he voluntarily gave up his CPA designation to the Virginia Board of Accountancy.
Both disciplinary actions cited Smith’s role in the Matson matter, which began when Matson was caught emptying the $3 million LandAmerica wind-down account while serving as trustee on the long-running case.
Smith admitted to receiving $1.5 million of that money from Matson and keeping it in his personal bank account before paying it back once the scheme was brought to light.
Aside from losing his credentials, Smith notably has not been charged criminally or civilly related to the saga. The U.S. Attorney’s Office, which led the case that put Matson in prison for nearly four years, has said in court it will not prosecute Smith.
A resident of Manakin-Sabot, Smith was represented in the Virginia State Bar matter by Paul Georgiadis. For the Board of Accountancy proceeding, he was represented by Charles Midkiff and Regina Policano of Midkiff, Muncie & Ross. Neither side responded to a request for comment from BizSense this week.
Smith’s prominence in the Matson proceedings evolved over time as the case played out.
Initially, Smith was explicitly named as he and Matson were forced to explain to the bankruptcy court what happened to the $3 million in LandAmerica funds and how they ended up in their personal accounts.
Later, as Matson’s crimes began to be more fully revealed, Smith’s name no longer appeared in court records, nor was it mentioned in court proceedings. Instead, he was referred to as “Individual A” by both sides and as “co-conspirator” by Matson’s defense team.
But his involvement played a role up until the end of Matson’s case. In arguing for a lighter sentence for their client prior to Matson’s conviction in November, Matson’s attorneys described Smith as being “complicit in a significant portion of Mr. Matson’s misconduct.”
“Along with Mr. Matson, Individual A inflated the winddown budget, unlawfully accepted a self-described bonus of $1.5 million, and then lied to the bankruptcy court to cover it up,” court filings state.
Judge John Gibney, who presided over Matson’s criminal case, at least on two occasions inquired about Smith, wondering whether he was going to be charged and why he was no longer referred to by name in the records.
The U.S. Attorney’s Office said it ultimately decided to make Matson the sole focus of its investigation, describing him as having a dominant role over a compliant subordinate in Smith.
“He was a pliable self-interested tool, but acting at Matson’s direction,” Assistant U.S. Attorney Thomas Garnett said of Smith at Matson’s sentencing.
Smith was first licensed to practice law in Virginia in 1996. Two years later he put his license in associate status and had not formally practiced since that time, VSB files state.
As for his CPA license, Smith earned that in 2007, although the VBOA says he never formally worked as a CPA and the credential had been in expired status since June 2020.
He most recently had been a longtime financial adviser on bankruptcy cases, first while working for Protiviti and later on his own.
With Matson in prison and Smith’s portion of the story put to rest, only one lingering piece of the saga remains.
Matson was sued last week by the new trustee overseeing what’s left of the LandAmerica estate. The case alleges Matson breached his fiduciary duty to the estate and continues to cost the estate money while it works to unwind Matson’s scheme.
That case is pending in Richmond federal court.
Matson is currently being held at FDC Philadelphia, an administrative detention center. He is expected to eventually serve the bulk of his sentence at FCI Cumberland, a federal penitentiary with a lower security camp in Allegany County, Maryland.
He may be complicit-I think he is based on all reports. Sounds like he may have been instrumental in bringing down Matson; he struck a deal.
White collar crime really does pay—and with very little downside, as demonstrated in this case. We have been, and still are imprisoning the wrong people.
Ted Chandler is a bigger criminal than these guys
google didn’t show much please go one
Look harder, see comment above. The LandAm story should be a movie. If you wanted to dig up real info, look back at financial filings from 2006-2008, all the info and the cast of morons is in there. There you will see how a $4B company tossed a few hundred million dollars into a sham investment to make maybe an extra $400k and killed a company. Fraud. Negligence. Hubris.
Amen to that. Scumbag attorney who thought he was a genius in the title business, CEO and Chairman of LandScam, he was one of the idiots who approved moving the 1031 money, along with the idiot Ramos – to the illiquid commercial paper investment that ultimately turned into the poison pill that killed the company. Somehow Chandler burned through the $800million in free cash the company made the year before this happened – by buying back company stock to increase his millions of compensation that he already got – and when the bill came due there was not enough cash… Read more »
Wow, just wow. I know there is more to this story, an entire book could be written on it, but once again I see someone getting caught with their hand in a seven digit cookie jar and merely getting that hand slapped.