Kenneth G. Reidenbach
Correction Nov. 7, 2011 — Local attorney Herbert P. Henderson was suspended by the disciplinary board of the Supreme Court of Pennsylvania following a recent guilty plea to embezzlement charges. An earlier version of the story below stated he is still practicing.
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A pair of local attorneys who allegedly stole thousands of dollars from clients while partners are taking different legal strategies.
The attorneys — Kenneth G. Reidenbach, 60, of Lititz, and Herbert P. Henderson, 47, of Elizabethtown — once shared a legal office at 36 E. King St. in Lancaster city.
They are free on bail after a federal indictment last year alleged they embezzled more than $50,000 from two clients' bankruptcy estate.
Henderson recently pleaded guilty to four charges, including embezzlement and conspiracy.
Reidenbach, however, will take his case to trial on Nov. 14 on similar charges, according to the U.S. Attorney's office.
And there is a chance Henderson will be a witness at the trial.
Both men are facing lengthy maximum prison penalties and fines of more than $1 million, according to officials.
Henderson's sentencing has been delayed until after the completion of Reidenbach's trial. A tentative opening date of March 16 has been set.
Henderson, who practiced in Cumberland County, pleaded guilty last month in Philadelphia before U.S. District Judge James Knoll Gardner. Judge Gardner also will sentence Henderson.
Reidenbach will be tried by U.S. District Court Judge Lawrence F. Stengel.
The alleged crimes are outlined in a federal indictment released in December 2010.
Between August 2003 and January 2006, according to documents, the two attorneys allegedly advised their clients, a married couple, to hide "more than $50,000 in cash," and then allegedly "conspired to keep the cash for themselves."
The clients lived in Lancaster and owned a number of rental properties.
The couple sold four of their rental properties, netting a total of $51,489 in proceeds.
The attorneys instructed the couple to transfer the proceeds of any sales to a trust account controlled by Reidenbach, according to the court documents.
The attorneys, if convicted, will be ordered to pay back that money.
