Case Title: Office of Lawyer Regulation v. James D. Thibodeau

Citation: 2007 WI 118

Docket Number: 2007AP000768-D

State: wisconsin

Court: Wisconsin Supreme Court

Date: 2007-09-18T00:00:00Z

Document:
2007 WI 118 
 
SUPREME COURT OF WISCONSIN 
 
 
 
 
 
CASE NO.: 
2007AP768-D 
COMPLETE TITLE: 
 
 
In the Matter of Disciplinary Proceedings  
Against James D. Thibodeau, Attorney at Law: 
 
Office of Lawyer Regulation, 
          Complainant, 
     v. 
James D. Thibodeau, 
          Respondent. 
 
 
 
 
 
 
DISCIPLINARY PROCEEDINGS AGAINST THIBODEAU 
 
 
OPINION FILED: 
September 18, 2007   
SUBMITTED ON BRIEFS: 
        
ORAL ARGUMENT: 
        
 
 
SOURCE OF APPEAL: 
 
 
COURT: 
        
 
COUNTY: 
        
 
JUDGE: 
        
 
 
 
JUSTICES: 
 
 
CONCURRED: 
        
 
DISSENTED: 
        
 
NOT PARTICIPATING: ROGGENSACK, J., did not participate.   
 
 
 
ATTORNEYS: 
 
      
 
 
2007 WI 118
NOTICE 
This opinion is subject to further 
editing and modification.  The final 
version will appear in the bound 
volume of the official reports.   
No.  2007AP768-D 
 
 
STATE OF WISCONSIN  
 
 
   : 
IN SUPREME COURT 
 
 
In the Matter of Disciplinary Proceedings 
Against James D. Thibodeau, Attorney at Law: 
 
Office of Lawyer Regulation, 
 
          Complainant, 
 
     v. 
 
James D. Thibodeau, 
 
          Respondent. 
 
FILED 
 
SEP 18, 2007 
 
David R. Schanker 
Clerk of Supreme Court 
 
 
 
 
 
ATTORNEY 
disciplinary 
proceeding.   
Attorney's 
license 
suspended.   
 
¶1 
PER CURIAM.   We review the stipulation filed by the 
Office of Lawyer Regulation (OLR) and Attorney James D. 
Thibodeau pursuant to SCR 22.121 wherein Attorney Thibodeau 
admits to the facts and professional misconduct involving his 
                                                 
1 SCR 22.12 provides in relevant part that "(1) The director 
may file with the complaint a stipulation of the director and 
the respondent to the facts, conclusions of law regarding 
misconduct, and discipline to be imposed. The supreme court may 
consider the complaint and stipulation without the appointment 
of a referee."  
No. 
2007AP768-D   
 
2 
 
trust account as alleged by the OLR in its complaint. Attorney 
Thibodeau also assents to the level of discipline sought by the 
OLR director, a 60-day suspension of his license to practice law 
in Wisconsin.  
¶2 
We adopt the stipulated facts and conclusions of law. 
We agree that Attorney Thibodeau's misconduct warrants the 
suspension of his license to practice law for a period of 60 
days. The OLR has stated that it does not seek to impose the 
costs of this proceeding upon Attorney Thibodeau and we accede 
to that recommendation.  
¶3 
Attorney Thibodeau was admitted to practice law in 
Wisconsin in 1984 and practices in LaCrosse. He has no prior 
disciplinary history.  
¶4 
The Wisconsin Department of Revenue filed tax warrants 
against Attorney Thibodeau in 1999, 2001, and 2004. Two of the 
tax warrants had not been satisfied as of April 8, 2005. On 
February 25, 2005, Attorney Thibodeau deposited a $10,000 check 
to his trust account. On April 8, 2005, he deposited a $9,113.75 
check to his trust account. Each of these checks represented 
funds belonging to Attorney Thibodeau from lumber sales. Both 
Attorney 
Thibodeau's 
business 
and 
personal 
accounts 
had 
previously been garnished for taxes. He deposited these two 
lumber checks into his trust account in an attempt to avoid 
seizure of his funds by tax authorities.  
¶5 
On August 5, 2005, Attorney Thibodeau deposited a 
$2000 check to his trust account, which constituted a payment of 
attorney fees owed by an estate. Between January 1, 2005, and 
No. 
2007AP768-D   
 
3 
 
August 17, 2005, Attorney Thibodeau was holding less funds in 
trust than he should have been holding, relating to various 
clients and WisTAF interest. During that time he also deposited 
personal funds into his trust account and gave a client a trust 
account check largely comprised of Attorney Thibodeau's personal 
funds. Between January 17, 2005, and August 22, 2005, Attorney 
Thibodeau 
made 
13 
transfers 
from 
his 
trust 
account 
via 
telephone. He failed to maintain a transaction register for his 
trust account and failed to maintain individual client ledgers. 
He also inaccurately certified to the State Bar of Wisconsin 
that he had complied with the trust account record keeping 
requirements.  
¶6 
On April 4, 2007, the OLR filed a nine count 
disciplinary complaint against Attorney Thibodeau. On July 2, 
2007, the parties filed a stipulation whereby Attorney Thibodeau 
stipulated to the following counts of misconduct:  
• Engaging in conduct involving dishonesty, fraud, 
deceit or misrepresentation, in violation of 
former SCR 20:8.4(c)2 by holding personal funds in 
his trust account in order to avoid the seizure 
of those funds by tax authorities. 
                                                 
2 Effective July 1, 2007, substantial changes were made to 
the Wisconsin Supreme Court Rules of Professional Conduct for 
Attorneys, SCR Chapter 20. See Supreme Court Order No. 04-07, 
2007 WI 4, 293 Wis. 2d xv; and Supreme Court Order No. 06-04, 
2007 WI 48, 297 Wis. 2d xlvii. Since the conduct underlying this 
case arose prior to July 1, 2007, all references to the supreme 
court rules will be to those in effect prior to July 1, 2007.  
Former SCR 20:8.4(c) provided that it is professional 
misconduct for a lawyer to "engage in conduct involving 
dishonesty, fraud, deceit or misrepresentation."  
No. 
2007AP768-D   
 
4 
 
• Depositing his own funds into his trust account, 
in violation of former SCR 20:1.15(b)(3).3 
• Failing to hold in trust, separate from his own 
property, that property of clients and third 
persons that were in his possession in connection 
with representations, in violation of former SCR 
20:1.15(a)4 (effective through June 30, 2004) and 
                                                 
3 Former SCR 20:1.15(b)(3) provided: "Lawyer funds. No funds 
belonging to the lawyer or law firm, except funds reasonably 
sufficient to pay monthly account service charges, may be 
deposited or retained in a trust account."  
 
4 Former SCR 20:1.15(a)(effective through June 30, 2004)  
provided:  
 
A lawyer shall hold in trust, separate from the 
lawyer's own property, that property of clients and 
third persons that is in the lawyer's possession in 
connection with a representation or when acting in a 
fiduciary capacity.  Funds held in connection with a 
representation or in a fiduciary capacity include 
funds held as trustee, agent, guardian, personal 
representative of an estate, or otherwise.  All funds 
of clients and third persons paid to a lawyer or law 
firm shall be deposited in one or more identifiable 
trust accounts as provided in paragraph (c).  The 
trust account shall be maintained in a bank, savings 
bank, trust company, credit union, savings and loan 
association or other investment institution authorized 
to do business and located in Wisconsin.  The trust 
account shall be clearly designated as "Client's 
Account" or "Trust Account" or words of similar 
import.  No funds belonging to the lawyer or law firm, 
except funds reasonably sufficient to pay or avoid 
imposition 
of 
account 
service 
charges, 
may 
be 
deposited in such an account.  Unless the client 
otherwise directs in writing, securities in bearer 
form shall be kept by the attorney in a safe deposit 
box in a bank, savings bank, trust company, credit 
union, 
savings 
and 
loan 
association 
or 
other 
investment institution authorized to do business and 
located in Wisconsin.  The safe deposit box shall be 
clearly designated as "Client's Account" or "Trust 
Account" or words of similar import.  Other property 
of a client or third person shall be identified as 
No. 
2007AP768-D   
 
5 
 
former SCR 20:1.15(b)(1)5 (effective July 1, 
2004). 
• Making disbursements from a trust account by a 
telephone transfer of funds, in violation of 
former SCR 20:1.15(e)(4)b.6 
• Failing 
to 
comply 
with 
record 
keeping 
requirements, 
in 
violation 
of 
former 
SCR 
20:1.15(f)(1)a,7 20:1.15(f)(1)b,8 20:1.15(f)(1)d,9 
and 20:1.15(f)(1)g.10 
                                                                                                                                                             
such and appropriately safeguarded.  If a lawyer also 
licensed in another state is entrusted with funds or 
property 
in 
connection 
with 
an 
out-of-state 
representation, this provision shall not supersede the 
trust account rules of the other state.  
 
5 Former 
SCR 
20:1.15(b)(1) (effective July 1, 2004) 
provided:  
 
Separate account.  A lawyer shall hold in trust, 
separate from the lawyer's own property, that property 
of clients and 3rd parties that is in the lawyer's 
possession in connection with a representation.  All 
funds of clients and 3rd parties paid to a lawyer or 
law firm in connection with a representation shall be 
deposited in one or more identifiable trust accounts. 
 
6 Former SCR 20:1.15(e)(4)b provided: "No deposits or 
disbursements shall be made to or from a trust account by a 
telephone transfer of funds.  This section does not prohibit 
wire transfers." 
 
7 Former SCR 20:1.15(f)(1)a provided:  
 
 
(1) Demand accounts.  Complete records of a trust 
account that is a demand account shall include a 
transaction register; individual client ledgers; a 
ledger for account fees and charges, if law firm funds 
are held in the account pursuant to sub. (b) (3); 
deposit 
records; 
disbursement 
records; 
monthly 
statements; and reconciliation reports, subject to all 
of the following:  
 
a. 
Transaction 
register. 
 
The 
transaction 
register shall contain a chronological records of all 
No. 
2007AP768-D   
 
6 
 
                                                                                                                                                             
account transactions, and shall include all of the 
following:   
 
1. the date, source, and amount of all deposits; 
 
2. the date, check or transaction number, payee 
and amount of all disbursements, whether by check, 
wire transfer, or other means;  
 
3. the date and amount of every other deposit or 
deduction of whatever nature;  
 
4. the identity of the client for whom funds were 
deposited or disbursed; and  
 
5. 
the 
balance 
in 
the 
account 
after 
each 
transaction. 
 
8 Former SCR 20:1.15(f)(1)b provided:  
 
b. Individual client ledgers.  A subsidiary 
ledger shall be maintained for each client or matter 
for which the lawyer receives trust funds, and the 
lawyer shall record each receipt and disbursement of 
that client's funds and the balance following each 
transaction.  A lawyer shall not disburse funds from 
the trust account that would create a negative balance 
with respect to any individual client or matter.  
 
9 Former SCR 20:1.15(f)(1)d provided:  
 
d. Deposit records.  Deposit slips shall identify 
the name of the lawyer or law firm, and the name of 
the account.  The deposit slip shall identify the 
amount of each deposit item, the client or matter 
associated with each deposit item, and the date of the 
deposit.  The lawyer shall maintain a copy or 
duplicate of each deposit slip.  All deposits shall be 
made intact.  No cash, or other form of disbursement, 
shall be deducted from a deposit.  Deposits of wired 
funds shall be documented in the account's monthly 
statement. 
  
10 Former SCR 20:1.15(f)(1)g provided:  
 
g. 
Reconciliation 
reports. 
For 
each 
trust 
account, the lawyer shall prepare and retain a printed 
reconciliation report on a regular and periodic basis 
not less frequently than every 30 days.  Each 
reconciliation report shall show all of the following 
balances and verify that they are identical:  (1) the 
No. 
2007AP768-D   
 
7 
 
• Filing false certificates with the State Bar of 
Wisconsin 
in 
violation 
of 
former 
SCR 
20:1.15(i)(4).11 
¶7 
The stipulation states that Attorney Thibodeau fully 
understands the misconduct allegations; fully understands the 
ramifications should the court impose the stipulated 60 day 
suspension of his license to practice law; and fully understands 
his right to contest the matter and to consult with counsel. 
Attorney Thibodeau states that he entered into the stipulation 
knowingly and voluntarily and that he admits the misconduct and 
assents to the level of discipline sought by the OLR director.  
¶8 
We approve the parties' stipulation and recommendation 
regarding discipline. Consistent with the stipulation we will 
not impose the costs of this proceeding upon Attorney Thibodeau.  
                                                                                                                                                             
balance that appears in the transaction register as of 
the reporting date; (2) the total of all subsidiary 
ledger balances for IOLTA accounts and other pooled 
accounts, determined by listing and totaling the 
balances in the individual client ledgers and the 
ledger for account fees and charges, as of the 
reporting 
date; 
and 
(3) 
the 
adjusted 
balance, 
determined by adding outstanding deposits and other 
credits to the balance in the financial institution's 
monthly statement and subtracting outstanding checks 
and other deductions form the balance in the monthly 
statement.  
 
11 Former SCR 20:1.15(i)(4) provided:  
 
(4) Suspension for non-compliance. The failure of 
a state bar member to file the certificate is grounds 
for automatic suspension of the member's membership in 
the state bar in the same manner provided in SCR 
10.03(6) for nonpayment of dues.  The filing of a 
false certificate is unprofessional conduct and is 
grounds for disciplinary action.  
No. 
2007AP768-D   
 
8 
 
¶9 
IT IS ORDERED that the license of Attorney James D. 
Thibodeau to practice law in Wisconsin is suspended for a period 
of 60 days, effective October 23, 2007. 
¶10 IT IS FURTHER ORDERED that Attorney James D. Thibodeau 
shall comply with the requirements of SCR 22.26 pertaining to 
activities following suspension.  
 
¶11 PATIENCE DRAKE ROGGENSACK, J., did not participate.  
No. 
2007AP768-D   
 
 
 
1