A Dearborn attorney running for Michigan’s 15th House District is facing allegations that could put his campaign and law license on the same collision course: A state grievance investigator says he misappropriated hundreds of thousands of dollars in client settlement money and failed to keep those funds separate.
The allegations are detailed in an investigative report reviewed by The Detroit News. The Michigan Attorney Grievance Commission launched its investigation in March 2024 and cited examples involving 26 clients as voters prepare to choose among candidates in Tuesday’s Democratic primary.
Investigators Allege Settlement Money Was Mishandled
According to the report, investigators allege Jalal Abdallah retained settlement funds for himself or failed to distribute clients’ full shares. The report also alleges he commingled personal or business money with client funds, failed to promptly pay multiple clients and did not provide requested records from his trust account.
The Attorney Grievance Commission describes itself as the Michigan Supreme Court’s investigative and prosecutorial arm for attorney-misconduct allegations. Its official guidance explains that attorney trust accounts are used to protect client money while a case is pending, making the handling of settlement funds central to the investigation.
One example cited in the report involved a $1,919.96 check drawn on Abdallah’s IOLTA account that was returned for insufficient funds in March 2024. The Detroit News reported that Abdallah told investigators an assistant had given him a blank IOLTA check and that he mistakenly wrote it for the firm’s operating account; he later said he was trying to obtain bank details to make sure his records were accurate.
The Allegations Arrive Just Before The Primary
Abdallah is running against Leslie Herrick and Gary Woronchak in the Democratic primary for the 15th District, while Hassan Nehme is the only Republican candidate listed for the seat, according to the Wayne County candidate list. His campaign website describes him as a lifelong Dearborn resident and attorney seeking to represent Dearborn and Dearborn Heights in Lansing.
Abdallah referred questions about the allegations to his attorney, Phil Thomas, according to the report. Thomas declined to comment, citing the pending disciplinary case, and the allegations have not yet resulted in a final ruling against Abdallah.
Michigan Panel Will Decide Possible Discipline
The next stage is handled through Michigan’s attorney-discipline system. The Attorney Discipline Board says hearing panels can impose a reprimand, suspension, disbarment or probation after a formal complaint is filed, with the panel deciding whether misconduct occurred and what discipline, if any, is appropriate.
That legal process is unfolding as Michigan’s Aug. 4 primary arrives. The Michigan Secretary of State lists tomorrow as Election Day, meaning voters in the district will be weighing the candidate’s qualifications while the professional case remains unresolved.
