Beverly Hills Bar gets back on track after embezzlement.

EIGHTEEN months after its former controller embezzled more than $800,000 from the organization, the Beverly Hills Bar Association is getting its financial house in order.

David Wolf, who had served as controller for four years, depleted the group's operating fund, reserves and investments. He also left $85,000 in unpaid bills. Wolf pleaded guilty last year to three counts of creating forged checks and was sentenced to a maximum penalty of 33 months in prison.

"I've been involved with the Bar Association for over 20 years, and we had never gone through anything like this," said Marc Staenberg, who became executive director of the Beverly Hills Bar Association this year. "You hear stories, but you don't think it'll happen to you."

Despite the fraud, the association was able to maintain the pro bono legal programs and law school scholarships that are staples of such organizations. It was able to maintain its offerings of continuing education programs that lawyers need to take to maintain active bar status.

In a State of the Bar address last month, Staenberg told members that the association successfully obtained lines of credit and settled legal claims against the entities that approved the checks, including City National Bank and Washington Mutual.

It also settled claims with its insurance carriers while receiving more than $180,000 in emergency pledges from members.

Now, the bar has brought back its pro bono services and law school scholarships, and Staenberg said the 3,600-member association has made significant internal changes, including check handling. "We always required two signatures, but now we require the signers sign in front of one another," he said.

He said that bank statements are now sent to the controller, the executive director, the treasurer and an outside CPA. Before, only the controller and the executive director reviewed the accounts. Also, he said, "I literally look at and improve every invoice before it's paid. If I see there's a past balance, I get the opportunity to raise the question. That didn't happen before."