Michigan Law Firm Embezzlement Case: Appeals Court Slashes Damage Award

Embezzlement within a law firm is a serious breach of trust, potentially leading to significant financial and reputational damage. A recent Michigan case highlights the complexities and legal nuances involved when such incidents occur. In a ruling published Friday, November 14, 2025, a Michigan state appeals court addressed a case involving a Detroit personal injury and civil rights law firm, Marko Law PLLC, and their former office manager, Erin Salling. The court’s decision significantly altered the financial outcome for the firm, raising important questions about the scope of damages recoverable in embezzlement cases.

The Case Overview

Marko Law PLLC accused Erin Salling, their former office manager, of embezzling tens of thousands of dollars by charging personal expenses to the firm’s credit card. The firm initially secured a lower court judgment that included treble damages and legal fees, totaling over $500,000. However, the appeals court panel reversed part of this award, specifically targeting the treble damages for investigation costs and the inclusion of legal fees.

Appeals Court Decision: A Closer Look

The appellate court’s decision centered on the interpretation of state law regarding damages in embezzlement cases. The panel found that Michigan law does not allow for trebling investigation costs, which constituted a substantial portion (over a third) of the original judgment. Additionally, the court disallowed the recovery of legal fees from Salling. This ruling resulted in a reduction of over $300,000 in treble investigation damages and $100,000 in attorney fees, significantly impacting the final award to Marko Law PLLC.

Understanding Embezzlement in Michigan

Embezzlement, in legal terms, is the act of misappropriating funds or property that has been entrusted to an individual. Unlike traditional theft, embezzlement involves a breach of trust, where the person has lawful access to the assets but illegally converts them for personal gain. In Michigan, embezzlement is defined as someone in control of the money or property of another person or of a business, accused of converting the money for their own use or fraudulently disposing of the money.

Penalties for Embezzlement in Michigan

Michigan law outlines varying penalties for embezzlement, depending on the value of the misappropriated assets. These penalties range from misdemeanor charges to severe felony convictions:

Less than $200: Misdemeanor, punishable by up to 93 days in jail and/or a fine of up to $500 or three times the value of the property, whichever is greater.
$200 to $1,000: Misdemeanor, punishable by up to one year in jail and/or a fine of up to $2,000 or three times the value of the property, whichever is greater.
$1,000 to $20,000: Felony, punishable by up to five years in prison and/or a fine of up to $10,000 or three times the value of the property, whichever is greater.
$20,000 to $50,000: Felony, punishable by up to 10 years in prison and/or a fine of up to $15,000 or three times the value of the property, whichever is greater.
$50,000 to $100,000: Felony, punishable by up to 15 years in prison and/or a fine of up to $25,000 or three times the value of the property, whichever is greater.
More than $100,000: Felony, punishable by up to 20 years in prison and/or a fine of up to $50,000 or three times the value of the property, whichever is greater.

In addition to these penalties, individuals convicted of embezzlement may be ordered to pay restitution to the victim, covering the value of the misappropriated property. The long-term consequences of an embezzlement conviction can be devastating, including damage to reputation, difficulty finding employment, and a tarnished criminal record.

Legal and Ethical Considerations for Attorneys

The Michigan Rules of Professional Conduct emphasize the ethical duties of attorneys, particularly regarding client funds and property. Attorneys must maintain scrupulous honesty and integrity in handling money and property entrusted to them. Any misuse of client funds can result in severe disciplinary actions, including disbarment.

Ethical Duties of Attorneys

Some of the top ethical duties of any criminal lawyer are:

Confidentiality: Attorneys have an obligation and duty to protect and maintain their clients’ privacy and confidentiality no matter what.
Avoiding Conflicts of Interest: Attorneys must avoid situations where their interests conflict with those of their clients.
Zealous Representation: Attorneys must represent their client’s interests to the full extent of the law.
Competence: Attorneys must provide competent representation to their clients.

Consequences of Ethical Violations

If an attorney violates their ethical duties, they can be sanctioned, including being disbarred, and their client has the option of filing a malpractice lawsuit against them as well.

Seeking Legal Assistance

If you are facing embezzlement charges in Michigan, it is crucial to seek the assistance of an experienced criminal defense attorney. Embezzlement cases often involve complex financial transactions and legal nuances, making it essential to have skilled representation to protect your rights. Similarly, if you are a law firm or business that has been a victim of embezzlement, consulting with an attorney experienced in civil litigation and fraud recovery is vital to explore your legal options and seek appropriate compensation.

Conclusion

The Michigan Court of Appeals decision in the Marko Law PLLC case serves as a reminder of the complexities involved in embezzlement cases, particularly concerning the recovery of damages. Understanding the nuances of Michigan law, the ethical obligations of attorneys, and the potential legal recourse available is essential for both defendants and victims of embezzlement.