Burr Ridge Attorney Kathleen Niew Sentenced to 70 Months for Diverting Clients' $2.34 Million Escrow to Gold Mines

Case from 2013–2015 (U.S. Attorney's Office latest release: Feb. 10, 2015). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Kathleen Niew, a suburban real estate attorney and radio talk show host who ran Niew Legal Partners LLC in Oak Brook, was sentenced on Feb. 10, 2015, to 70 months in federal prison for stealing about $2.34 million that clients had placed in her attorney escrow account, the U.S. Attorney's Office for the Northern District of Illinois announced [1].

How the scheme worked

According to court records cited by prosecutors [1] [2]:

1. Money for closings: A married couple who were Niew's clients wired about $2.34 million into her escrow account to close commercial real estate purchases.
2. Diverted to mines: From January 2010 to December 2012, without the couple's knowledge, Niew used the money to finance purchases of gold mining operations. She arranged a 20% finder's fee for herself for steering about $1.5 million of their money to mining investments.
3. Cover stories: She told the couple the funds were still in escrow, and later blamed the bank for supposedly sending closing money to the wrong accounts, according to the indictment.
4. Another client: At sentencing, U.S. District Judge Harry Leinenweber also found Niew responsible for taking $500,000 from another client by falsely saying she needed a loan to buy assets in her upcoming divorce. She was not getting divorced, and sent the money to one of the same investment operations.

A prosecutor's sentencing memo said Niew stole $2.8 million in all and, when caught, created false cover-up documents, lied to clients and lied under oath to the Illinois attorney disciplinary commission (ARDC).

The person sentenced

Kathleen Niew, 59 at sentencing, Burr Ridge, Ill.

• Charges: 10 counts of wire fraud (indictment, August 2013); arrested by the FBI at her Oak Brook office.
• Plea (June 2014): guilty to all 10 counts.
• Law license: suspended in May 2013 and later disbarred in 2013, according to prosecutors.
• Sentence (Feb. 10, 2015): 70 months in prison, three years of supervised release, $2.34 million restitution and forfeiture [1].

Red flags

• Delays or excuses about why escrowed money hasn't reached the title company.
• "The bank sent it to the wrong account" explanations.
• An attorney asking to borrow money from a client.

What to do if you're targeted

1. Ask the title company directly whether closing funds have arrived; for large deals, consider wiring directly to a title company's verified escrow.
2. Check an Illinois lawyer's status and discipline history at iardc.org; other states have similar bar lookups.
3. Report attorney theft to the ARDC and the FBI at tips.fbi.gov. Illinois also has a Client Protection Program that may reimburse victims of lawyer theft.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Kathleen Niew, Burr Ridge, Ill.	N.D. Ill. (Judge Leinenweber)	Pleaded guilty June 2014 to 10 counts; sentenced Feb. 10, 2015, to 70 months; $2.34M restitution	[1], [2]

The sentence was imposed in 2015; we have not found a source on Niew's current custody status.

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Suburban Attorney Sentenced To 70 Months For Stealing $2.34 Million In Clients' Funds," Feb. 10, 2015. https://www.justice.gov/usao-ndil/pr/suburban-attorney-sentenced-70-months-stealing-234-million-clients-funds
2. U.S. Attorney's Office, Northern District of Illinois, "FBI Arrests Suburban Attorney For Allegedly Stealing $2.34 Million In Clients' Funds From Her Escrow Account," Aug. 29, 2013. https://www.justice.gov/usao-ndil/pr/fbi-arrests-suburban-attorney-allegedly-stealing-234-million-clients-funds-her-escrow

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