Charleston, South Carolina – In new court filings, two Lowcountry attorneys and law partners have accused each other of stealing money from the legal company and discussing drug use.
Kevin Smith and the Hoffman Law Firm filed a complaint against their colleague, David Hoffman Jr., last Wednesday, alleging that Hoffman distributed $9.4 million more than he was supposed to.
The Hoffman Law Firm was created in 2007, but Smith did not join until 2012. Around 2014, he acquired 49% of the firm, leaving Hoffman with 51%.
Smith argues in his lawsuit that Hoffman has refused to give “equitable distributions” for years despite the firm’s small size of two members.
“In 2023, I started to have suspicions that member distributions were not being properly calculated,” Smith says in legal documents.
Smith states that in answer to his concerns, Hoffman showed him a QuickBooks screen on his computer, indicating that they were being paid equally.
“By 2024, Hoffman stopped making regular member distributions, and my attempts to get information from him and the firm’s (certified public accountant) were met with yelling, threats, and attempts at intimidation by Hoffman,” according to Smith.
David Hoffman produced affidavits with the following tables of revenue allocations to himself and Smith:
W2 Income Hoffman-Smith’s income per Quickbooks is as follows: 504,415.77 in 2022, $388,427.80 in 2023, and $96,200.00 in 2024. Hoffman Distributors Smith Distributions’ budget for 2022 is $647,620, followed by $662,620 and $580,000 in 2023. $614,000 2024 $370,000 $370,000
Hoffman refuted this assertion in an affidavit that included a summary of revenue and disbursements for both himself and Smith, with both earning similar amounts each year.
Smith claims that in early 2025, he went to Hoffman’s office and asked to see the firm’s books, gain access to their QuickBooks account, and have his name added to the company’s bank account.
According to court filings, Hoffman answered by saying he would “need to think about it.”
In an affidavit submitted on Tuesday, Hoffman stated that the firm’s data were always available next door to Smith’s office.
Along with the complaint filed last Wednesday, Smith’s attorneys presented a forensic audit of financial data made available by the law firm.
According to an affidavit filed by accountant Christa Yantis, transfers totaling $2,068,520.45 were made from the firm to two separate limited liability companies that do not appear to have “incurred any ongoing business expenses or that the entity is operating in any significant business capacity.”
Yantis presented the following data based on her forensic accounting findings:
From January 2021 to December 2024:
Hoffman Law transfers $1,531,535.45 to Elite Marketing of Charleston LLC.
$1,279,542.12 transferred from Elite Marketing to David Hoffman’s own account.
From August 2020 through April 2024:
Yantis’ accounting records transfers of $536,985.40 from Hoffman Law to Jolly Rogers Ventures LLC, $4,000,000 from David Hoffman’s personal account to Jolly Rogers Ventures LLC, and $2,009,220.93 from Jolly Rogers Ventures LLC to David Hoffman’s personal account. The LLCs were named after downtown addresses: 251 Meeting Street #3 LLC, 350 King St 201 LLC, and 350 King St 206. From January 2017 to December 2024, transfers to these LLCs total $235,457.26, according to her affidavit.
According to the South Carolina Secretary of State’s website, four of the five LLCs cited in the lawsuit have the same registered agent. When contacted by Live 5, the agency declined to respond. The representative representing the fifth LLC has yet to reply to a request for comment.
Separate from the LLCs, Yantis’ statement alleges that she discovered $7,202,282.78 in electronic payments made directly to Hoffman between August 2017 and December 2024.
These transactions are said to include $2,212,364.85 in wire transfers to JPMorgan Chase Bank, $734,880.94 in credit card payments, and $1,635,744.78 in payments for items or services that are not considered Hoffman Law Firm costs. According to the statement, these expenses include Botox, house maintenance/cleaning, medical expenses, mortgage payments, and weapons.
In his declaration, Hoffman claims, “Both Mr. Smith and I have used firm monies to pay personal expenses.” He goes on to say, “After this controversy arose, I directed the accountant retained by (Hoffman Law Firm) to review the tax returns and thoroughly go through Quickbooks for the relevant period.” He finished the review and corrected the tax returns. Those reflect the rectification of transfers to other accounts.”
“While these transfers are loans to me, and I am responsible for putting them back in the LLC,” Hoffman elaborates.
Yantis calculates that Hoffman received a disproportionate part of the cash disbursed, totaling $9,400,237.45, and claims that fraud is extremely plausible based on the minimal facts presented to her.
A week after Smith’s initial lawsuit, Hoffman and eight other Hoffman Law Firm workers filed affidavits.
“Mr. Smith has done absolutely nothing with regard to the management of the law firm, and he has done comparatively little in the way of productivity,” according to Hoffman. “For quite some time, I have been displeased with Mr. Smith and his behavior. I struggled through it, but I was increasingly dissatisfied with the impact it was having on our company.”
Hoffman Paralegal Tracie Hopkins submitted an affidavit.
“When [Smith] was in the office, he spent an inordinate amount of time focusing upon his charter yacht business to the detriment of his case load,” Hopkins told me. “I overheard him talking on the telephone on many occasions about scheduling the charter boat.”
Hoffman goes on to claim that Smith discussed the use of illegal narcotics in the workplace.
“He has openly discussed his contemporaneous use of cocaine and other illegal drugs with members of the staff and me,” according to Hoffman.
“He travels frequently across the country and internationally, performing at music festivals,” Hoffman office manager Stephanie Mills said in an affidavit. “He has on occasion discussed with me and others his partying life, including the use of illicit drugs, such as marijuana and cocaine.”
Hoffman states that prior to August, he addressed with numerous legal counsel the need for the Hoffman Law Firm to remove Smith from the firm.
When asked to comment on the contents of affidavits made by Hoffman and others at his firm, Smith denied using narcotics.
“I do not use drugs and I believe these accusations are nothing more than retaliation against me for exposing Hoffman’s financial misconduct,” he informed me.
Smith’s action seeks an order demanding an immediate equitable accounting of the Hoffman Law Firm, requiring Hoffman to repay all assets “wrongfully distributed,” and dissociating him from the firm he formed in 2007.
The following statement was given on behalf of David Hoffman:
“We’re aware that a lawsuit was just filed. The claims are without validity, and we will firmly defend against them.
Since starting Hoffman Law Firm in 2007, David Hoffman has guided the firm’s evolution from a one-room office to a renowned practice servicing clients throughout the Lowcountry. For than two decades, his leadership has been marked by ethics, responsibility, and a steadfast dedication to client service and community.
That devotion remains at the heart of Hoffman Law Firm today. We will not provide any additional information at this time because this is an ongoing legal case.
