LEWISTON — Clients of Paul Dionne, the local attorney and former mayor who died in April, are being notified after a “significant amount of client funds” were found to have been misappropriated by Dionne’s law firm.

A pair of attorneys tasked with overseeing Dionne’s business have been notifying his former clients to advise them about Dionne’s mishandling of their money.

“We are working diligently to determine the full extent of the financial impact,” said Emma G. Bilodeau, one of two attorneys appointed to manage or close out existing cases at Dionne’s business.

The Dionne & Couturier law firm was managed by Dionne alone, Bilodeau said, and it was his responsibility to protect money on behalf of his clients.

The amount of funds that were misappropriated was not known Friday. It was not immediately clear how many of Dionne’s clients may have been affected. None were available for comment Friday afternoon.

It was also unknown Friday whether any of the misappropriated money can be reclaimed from Dionne’s personal estate. The lawyers were outlining a number of options the defrauded clients might take to recoup their funds.

Dionne died in mid-April due to complications during surgery. He was 82.

Upon Dionne’s death, the Board of Bar Overseers appointed Emma Bilodeau and fellow attorney Karen Bilodeau as co-receivers to manage Dionne’s business.

A receivership occurs in situations such as this when an attorney has passed away or is otherwise incapacitated and unable to continue practice.

The two attorneys soon discovered significant problems in Dionne’s files.

They “were shocked by the misappropriation of funds and the impact this has had on the clients who are facing significant financial loss,” Emma Bilodeau said. “As attorneys, we recognize the importance of our ethical obligations to clients and the trust clients expect to have with their attorneys. Attorney Dionne’s apparent conduct is disappointing, as it impacts the profession as a whole.”

The local legal community, which glowed with praise and admiration for Dionne upon his death, was generally stunned by the news that Dionne had mismanaged funds.

“Of course this case will be tough because Paul will not be here to tell his side of the story,” said attorney James Howaniec, upon learning of the matter.

“As attorneys working in Lewiston and as a Lewiston native myself,” Emma Bilodeau said, “attorney Dionne was well known in the community, and it is saddening to have learned of his actions in his capacity as an attorney.”

Reached Friday, Dionne’s daughter said the allegations were out of character for her father.

“All I can say is that we know allegations have been made, but we haven’t seen any of the evidence,” Michelle Crowley said. “We’re completely shocked because the allegations are not in line with anything we knew of our father’s character. And there was nothing we ever observed or experienced that would back up what he’s being accused of. Believe me. We have just as many questions as everybody else.”

As an attorney, Dionne had a mostly pristine record with the Board of Overseers.

However, in October 2019, an attorney filed a complaint against Dionne on behalf of the Alzheimer’s Association.

Dionne had been handling a trust for the group since 2014, but it was alleged that he had failed to pay the Alzheimer’s Association its bequest. The complainant also charged that Dionne had been unresponsive to communications from the Alzheimer’s Association, including letters and voicemails sent over the course of five years.

Soon after the complaint was filed, Dionne explained the matter as a filing error. He then paid the principal of the bequest to the Alzheimer’s Association and made an additional payment to the group to cover financial opportunities it may have lost due to Dionne’s long delay in paying them.

As a result of Dionne’s mishandling of those funds, the Board of Overseers admonished him and ordered that he serve a year under supervision by a “person experienced in the proper management of documents and trust accounts.”

In Lewiston and Auburn, Dionne was a luminary. He had been a lawyer and assistant district attorney in the Twin Cities and served four years as mayor of Lewiston in the 1980s. Many credited him with overseeing the redevelopment of Lisbon Street into a thriving corridor of commerce.

He was also said to be the main force behind the effort to bring Lewiston-Auburn College to the community.

He was the author of two critically acclaimed novels and was involved with a variety of philanthropic causes.

What happens next in the matter of Dionne’s business practices is a bit unclear.

If this kind of fraud had come to light while Dionne was alive, Emma Bilodeau explained, law enforcement would likely get involved. In fact, Dionne’s clients are being advised that reporting to law enforcement may still be an option even though Dionne has passed. It was also suggested that they contact the Office of the Maine Attorney General and to pursue potential civil claims.

“All clients impacted have been notified to file claims with the Maine Lawyers’ Fund for Client Protection which may be able to assist them,” Emma Bilodeau said. “They may also be able to pursue a claim against his estate and have been advised to seek advice from an attorney that specializes in probate matters.

“Additionally,” Bilodeau said, “attorneys are required to have malpractice insurance, but often the standard malpractice insurance does not cover acts that are considered criminal in nature.”