News file photo Michelle Elowski enters her car after leaving the Alcona County Courthouse in an archived photo.

ALPENA — The State of Michigan Attorney Discipline Board (ADB) released a new order reducing former Attorney Michelle Elowski’s restitution from $266,091 to a total of $201,591.

The order was issued on April 29. The original order of restitution and disbarment for Elowski was issued on Jan. 8. She filed a petition for review on Jan. 29.

Elowski was arrested on Feb. 1, 2024, the News previously reported. She was originally charged with two counts of common law fraud, one count of check fraud with non-sufficient funds of $500 or more, one count of embezzlement by a trustee of $1,000 or more but less than $20,000, and one count of embezzlement by a trustee of $50,000 or more but less than $100,000.

Elowski engaged in extensive misconduct while representing clients in civil and probate matters, most notably in connection with her representation of Earline White in a partition action, the ADB’s “Order affirming in part and modifying in part hearing panel order of disbarment and restitution,” issued last Wednesday, stated. The record reflects that Elowski received substantial funds from White and a third‐party lender, Charles Meiser, including loan proceeds and client funds intended for litigation purposes, but misused those funds through repeated transfers between accounts, depletion of balances, and online gambling. Elowski also misappropriated funds from the Estate of Candice Massey to cover obligations in White’s matter.

On Jan. 16, 2025, Elowski pleaded no contest to one count of embezzlement by a trustee of $1,000 or more but less than $20,000 and one count of check fraud with non-sufficient funds of $500 or more, according to MiCourt. All other charges were dismissed. She was sentenced to eight months in jail and two years probation for those offenses on Feb. 18, 2025 in the Oscoda County 23rd Circuit Court.

In Elowski’s petition for review, she did not request a stay of the order of discipline; accordingly, respondent’s disbarment took effect on Jan. 30, the ADB’s order stated. Although respondent raised numerous issues in her original petition for review, in her brief in support, she narrowed the focus to only a review of the restitution ordered by the panel, abandoning all other issues.

“Again, the Board’s review in this matter is limited to the propriety of the restitution ordered by the hearing panel,” the order states. “Respondent has expressly abandoned all other issues; therefore, questions as to the hearing panel’s findings of misconduct and the appropriateness of the disbarment imposed by the panel are not before the Board. The sole question on review is whether the restitution ordered is supported by the whole record.”

After careful review, the ADB concluded that the hearing panel’s restitution award is not supported by proper evidentiary support and must be modified. With respect to White, the record establishes that Elowski received a total of $74,000 from White in connection with the underlying litigation. However, it is equally undisputed that Elowski caused $70,000 to be paid on White’s behalf to resolve that matter. While those funds were improperly taken from the Massey Estate, the fact remains that White received the full benefit of that payment.

The hearing panel erred by failing to credit this $70,000 payment against the amount owed to White. The panel’s reliance on the restitution ordered to be paid in the criminal proceeding is misplaced, as that amount was the product of a plea agreement and not an adjudicated determination which the ADB would be bound to follow here. By ordering Elowski to pay $68,500 in restitution to White without accounting for the $70,000 payment made on her behalf, the panel effectively awarded White more than she actually lost. On this record, White’s net loss is $4,000, representing the difference between the total amount she provided to Elowski and the amount ultimately paid for her benefit. Accordingly, restitution to White must be reduced to $4,000.

In contrast, the restitution awarded to Meiser and the Massey Estate is supported by the record and is not meaningfully disputed. The evidence demonstrates that Meiser transferred $100,000 to respondent, which has not been repaid, and that respondent misappropriated approximately $97,591.90 from the Massey Estate, likewise not repaid. Those amounts were properly included in the hearing panel’s order.

The ADB ordered that the hearing panel’s order of disbarment and restitution is affirmed in part and modified in part. Specifically, the $100,000 in restitution ordered to be paid to Meiser and the $97,591.90 in restitution ordered to be paid to the Massey Estate are both affirmed. The $68,500 in restitution ordered to be paid to White is reduced to $4,000.

The ADB also ordered that Elowski shall not be eligible for reinstatement in accordance with MCR 9.123 unless she has fully complied with the restitution provisions of this order and with the restitution she agreed to pay as part of her plea agreement in People v Michelle Lynn Elowski, Oscoda County Circuit Court. All other provisions of the hearing panel’s order of disbarment and restitution remain in full force and effect.

Reagan Voetberg can be reached at 989-358-5683 or rvoetberg@TheAlpenaNews.com.