The University of St. Thomas

Stephen Rondestvedt:
Lessons Learned the Hard Way

Biographical Background

Stephen Rondestvedt’s high school peers voted him “most likely to succeed.”  For several years, it appeared that he had lived up to this esteemed expectation: he graduated from college and law school with honors, married and had children, and was in the process of starting his own law firm and purchasing a dream home.  No one would have expected that Rondestvedt would also earn the title of felon and a 46-month federal prison sentence. 

Rondestvedt, a lawyer, used two main methods for stealing his clients’ funds: (1) forging client signatures and settling claims without clients' knowledge, and (2) convincing clients to invest their disability settlements in non-existent high-yield annuities or certificate of deposits.  His crimes were even more insidious because Rondestvedt knew each of his clients personally.  He often ate in their homes and on several occasions was invited to attend various family functions.  Despite the fact that each of his clients was poor and/or disabled, an excess of pride and ego, as well as the "desire to look successful" motivated Rondestvedt's wrongdoing.  This led to his embezzlement of more than $750,000 of client funds, which in turn resulted in the Client Security Fund’s largest victim payout. 

Through his scheming and deception, Rondestvedt found himself living in an emotional prison, secluding himself from society and planning his suicide.  Rondestvedt realized hours before he was going to kill himself that he could not go through with it — instead, he had to "do the right thing."  After confessing and agreeing to his disbarment, Rondestvedt met with Assistant U.S. Attorney Hank Shea and an FBI agent to form the federal case against him, which resulted in his guilty plea to two counts of mail fraud.  
 
Presentation by Stephen Rondestvedt (and Hank Shea)

Rondestvedt and Shea, the former Assistant U.S. Attorney who prosecuted him and current Fellow at the University of St. Thomas School of Law’s Holloran Center for Ethical Leadership in the Professions, now give joint presentations on ethics to professional audiences.  They discuss why and how one should avoid unethical decisions, such as Rondestvedt’s, in a legal practice.  Shea moderates as Rondestvedt explains how greed, arrogance, and opportunity led to his criminal activity.  Rondestvedt’s presentation reveals: how the practice of law can be a “seductive process” for a young lawyer; his ethical compromises that lead to extensive fraud and embezzlement of client funds; why he decided to surrender and confess to federal authorities; and what he has learned as a white collar criminal.   

Lessons to be Learned from Rondestvedt

Rondestvedt and Shea’s joint presentation highlights that while each of us face decisions between right and wrong, it is our response to those decisions that creates the distinction between ethical and unethical behavior.  Rondestvedt demonstrates the dangers of acting in isolation and how small ethical compromises can easily grow exponentially into criminal conduct.  Both Rondestvedt and Shea provide insight into how a mentor relationship may be highly effective in preventing unethical decisions.  Their presentation leaves students and professionals with strong resolve to avoid unethical decision-making in their careers.

To schedule a presentation with Hank Shea and Stephen Rondestvedt, please contact: hjshea@stthomas.edu.

 

"I think the standing ovation was very specific feedback! Our folks are typically very appreciative, but they've never done that [given a standing ovation] before....

 

I found the entire session to be very powerful and moving, mostly I think because of Steve's humility and sincerity. Mr. Shea set the stage very well and provided a clear, sound, direct moderating tone that let people know they could really ask this young man the tough questions."

 

—Sister Marie Herbert

 

 

"It is hard to overstate the positive impact for our law students of listening to Steve Rondestvedt talk with Hank Shea about his experiences. It made real for them the possibility that people like them, who have lives and talent and ambition, who go to law school with every intention of being successful, can make mistakes-- even major mistakes-- and wind up in prison as a consequence.

 

Nothing can convey that lesson as powerfully as hearing first-hand from former lawyers who have gotten into trouble.  Hank Shea's remarkable program is an invaluable resource, one I hope to continue to draw on for the benefit of my students for years to come."

 

—Sharon Dolovich, Professor, UCLA School of Law