Between 2016 and 2018, Human&Legal published a series of posts concerning Derek Bluford, a figure who was once considered a rising star in the legal technology startup sector. Bluford’s prominence declined following a 2016 report of his settlement in a lawsuit. This legal action charged him with impersonating a lawyer, forging legal documents, and fraudulently swindling two clients.
Bluford has now received a seven year prison sentence for charges related to these forgeries and fraud. On Thursday, Phillip A. Talbert, the acting U.S. attorney for the Eastern District of California, announced that Bluford, age 34, was sentenced for wire fraud, money laundering, obstruction of a federal investigation, and making false statements.
Bluford’s Early Ventures and Subsequent Shut Down
When the initial report about Bluford was published, he was scheduled to be featured at a Legaltech West Coast program focused on legal innovation just two weeks later. At only 28 years old, he had garnered success and recognition as an entrepreneur. His ventures included California Legal Pros, a company that marketed various legal services to both consumers and lawyers. He subsequently launched QuickLegal, a service offering on demand legal advice to consumers, and then QuickLegal Practice Management, a cloud practice management platform designed for lawyers.
Bluford had even been selected to appear on the popular ABC television show Shark Tank, although it appears he never actually featured in an aired segment.
Following the initial media report, QuickLegal shut down but seemed to reappear as another similar startup called LawTova. After Human&Legal published reports about LawTova, that company also ceased operations. The blog then covered another startup with ties to Bluford and QuickLegal, which has since shut down as well.
In 2018, a federal grand jury indicted Bluford on the charges that ultimately led to his sentencing last week.
The Details of Impersonation and Fraud
The first post about Bluford in 2016 detailed the fraud, which at that point had been documented in a civil suit. In that suit, Bluford agreed to a judgment entered against him for $559,330. This case was connected to his company California Legal Pros.
When a couple sought Bluford’s assistance with an eviction matter, he falsely claimed to be a lawyer. He then used an elaborate series of fabricated documents, fictitious court hearings, counterfeit fines, and outright falsehoods to induce the couple to pay him over $500,000. The deception was only uncovered when the couple became suspicious and investigated the judge who had supposedly issued orders against them, discovering that no such judge existed.
The day after the initial post, Bluford contacted the author, insisting on his innocence. He claimed that a staff member had committed the fraud by hacking into his computer and impersonating him.
Later Developments and Allegations
Last October, the narrative took another peculiar turn when Bluford published a book. In the book, he asserted that he had become an FBI informant, assisting in a political corruption investigation into the former mayor of Sacramento, California, Kevin Johnson, who was also a former NBA player for the Phoenix Suns.
Bluford’s book referenced the 2016 post, alleging that he was on the verge of selling his company to LegalZoom for a valuation between $10 million and $15 million when the lawsuit and the report on it caused LegalZoom to withdraw from the deal. (LegalZoom had previously denied doing business with Bluford or having any partnership with him in 2016.)
Shortly after the book’s release, a New Haven, Connecticut newspaper reported that Bluford had attempted to bribe New Haven’s then mayor, Toni Harp, in 2019. The report alleged that during a dinner at a high end steakhouse to discuss a potential contract with another of Bluford’s companies, he handed Harp an envelope containing $7,000 in cash.
Prior Coverage on Human&Legal
The complete set of prior posts about Bluford on Human&Legal includes:
- Former Legaltech CEO Tried To Bribe New Haven Mayor.
- Indicted Founder Of Now Defunct Legal Tech Company Says In Book He Was FBI Mole.
- Former Legal Tech Entrepreneur Federally Indicted for Wire Fraud and Money Laundering.
- And Now, Yet Another Startup From Some of the Former QuickLegal Crew.
- QuickLegal’s Counsel Responds To My Recent Reports About Startups LawTova and Text to Ticket.
- Legal Startup Appears to Shut Down After I Question Its Management.
- Former GC Sues QuickLegal for Unpaid Stock and Wages.
- Case of Startup CEO Charged with Fraud Gets Curiouser.
- CEO of Legal Startup Responds to Yesterday’s Post.
- CEO of Legal Startup Settles Lawsuit Charging Fraud, Forgery and Impersonating a Lawyer.
