Title: Office of Lawyer Regulation v. Richard A. Engelbrecht

State: wisconsin

Issuer: Wisconsin Supreme Court

Document:

2007 WI 2 
 
SUPREME COURT OF WISCONSIN 
 
 
 
 
 
CASE NO.: 
2006AP1045-D 
 
 
COMPLETE TITLE: 
 
 
In the Matter of Disciplinary Proceedings 
Against Richard A. Engelbrecht, Attorney at Law: 
 
 
Office of Lawyer Regulation, 
          Complainant, 
     v. 
Richard A. Engelbrecht, 
          Respondent. 
 
 
 
 
DISCIPLINARY PROCEEDINGS AGAINST ENGELBRECHT 
 
 
OPINION FILED: 
January 5, 2007   
SUBMITTED ON BRIEFS: 
        
ORAL ARGUMENT: 
        
 
 
SOURCE OF APPEAL: 
 
 
COURT: 
        
 
COUNTY: 
        
 
JUDGE: 
        
 
 
 
JUSTICES: 
 
 
CONCURRED: 
        
 
DISSENTED: 
        
 
NOT PARTICIPATING:         
 
 
 
ATTORNEYS: 
 
      
 
 
2007 WI 2
NOTICE 
This opinion is subject to further 
editing and modification.  The final 
version will appear in the bound 
volume of the official reports.   
No.  2006AP1045-D  
 
 
STATE OF WISCONSIN  
 
 
   : 
IN SUPREME COURT 
 
 
In the Matter of Disciplinary Proceedings 
Against Richard A. Engelbrecht, Attorney at 
Law: 
 
Office of Lawyer Regulation, 
          Complainant, 
 
     v. 
 
Richard A. Engelbrecht, 
          Respondent. 
 
FILED 
 
JAN 5, 2007 
 
Cornelia G. Clark 
Clerk of Supreme Court 
 
 
 
 
 
ATTORNEY 
disciplinary 
proceeding.   
Attorney's 
license 
suspended.   
 
¶1 
PER CURIAM.   We review the stipulation filed by 
Attorney Richard A. Engelbrecht and the Office of Lawyer 
Regulation (OLR) pursuant to SCR 22.12, in which Attorney 
Engelbrecht admits the facts and misconduct alleged by the OLR 
and agrees to the discipline the OLR seeks.  The parties agree 
that the appropriate discipline is a six-month suspension of 
Attorney Engelbrecht's license to practice law and to condition 
his reinstatement on furnishing to the OLR all trust account 
records not previously provided from January 2001 through 
No. 
2006AP1045-D   
 
2 
 
December 2005, along with other financial information detailed 
in the stipulation.   
¶2 
We approve the stipulation and adopt the stipulated 
facts and conclusions of law.  We agree that the seriousness of 
Attorney Engelbrecht's misconduct warrants the suspension of his 
license to practice law.  We accept the parties' stipulation 
that a six-month suspension is appropriate and their agreement 
to condition Attorney Engelbrecht's reinstatement on furnishing 
to the OLR the trust account records not previously provided. 
¶3 
Attorney Engelbrecht was admitted to practice law in 
1974 and practices in Green Bay.  He has been subject to 
disciplinary proceedings on two previous occasions; a private 
reprimand in 1989 and a 60-day suspension of his license in 
2000.  The parties stipulate that Attorney Engelbrecht's current 
misconduct involves two client matters.  In the first matter, 
client B.M. retained Attorney Engelbrecht in May 2002 to 
represent her in a divorce action and to file a joint bankruptcy 
action for her and her husband prior to the conclusion of the 
divorce.  For the bankruptcy, B.M. paid Attorney Engelbrecht 
$840, with $200 representing the filing fee and the balance 
representing Attorney Engelbrecht's legal fees.   
¶4 
Attorney Engelbrecht filed the divorce petition in 
August 2002 but did not file a bankruptcy petition for the next 
one and one-half years.  Although the parties reconciled for a 
period of time, their divorce action resumed in October 2003 
with the final judgment entered in January 2004.  During the 
resumption 
of 
divorce 
proceedings, 
Attorney 
Engelbrecht 
No. 
2006AP1045-D   
 
3 
 
requested B.M.'s husband to pay a $200 filing fee and a $600 
legal fee for a joint bankruptcy petition.  Attorney Engelbrecht 
did not mention B.M. had already paid him $840.  The husband did 
not pay.  Attorney Engelbrecht did not file the joint bankruptcy 
petition nor pursue an individual bankruptcy action for B.M.  
Upon her inquiry, Attorney Engelbrecht told her she had not paid 
him.   
¶5 
In the spring of 2004, B.M. found her receipts for the 
cash payments she had paid Attorney Engelbrecht.  At that point 
he agreed to proceed with the bankruptcy action.  However, in 
June 2004 the bankruptcy petition had not yet been filed, and a 
creditor of B.M. obtained a small claims judgment against her.   
¶6 
In July 2004 B.M. filed a grievance.  It was not until 
September 2004 that Attorney Engelbrecht finally filed the 
bankruptcy action for B.M.  Attorney Engelbrecht had not 
retained in his trust account the funds to cover the filing fee 
that he received from B.M. over two years earlier.  He purchased 
a cashier's check to cover the bankruptcy filing fee. 
¶7 
In an October 2004 letter, Attorney Engelbrecht 
provided evasive and untrue information to the OLR regarding the 
divorce and bankruptcy matters.   
¶8 
Attorney Engelbrecht stipulates to three counts of 
misconduct arising out of his representation of B.M.  Count One 
states that by failing to deposit and hold in his trust account 
the $200 bankruptcy filing fee that B.M. paid, Attorney 
No. 
2006AP1045-D   
 
4 
 
Engelbrecht violated former SCR 20:1.15(a),1 which is the current 
SCR 20:1.15(b)(1) (effective July 1, 2004).  Count Two states 
that by failing to file a bankruptcy action for more than two 
years, Attorney Engelbrecht failed to act with reasonable 
diligence and promptness, contrary to SCR 20:1.3.2  Count Three 
states that by failing to fully respond and by making 
misrepresentations to the OLR during its investigation, Attorney 
Engelbrecht violated SCR 22.03(6).3 
¶9 
The second client matter involves client M.B.  In 2001 
M.B. retained Attorney Engelbrecht to file a divorce action and 
                                                 
1 Former SCR 20:1.15 applied to misconduct committed prior 
to July 1, 2004.  It provided in pertinent part: 
(a) 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 . . . 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. . . . 
2 SCR 20:1.3 provides that "[a] lawyer shall act with 
reasonable diligence and promptness in representing a client." 
3 SCR 22.03(6) provides that "[i]n the course of the 
investigation, 
the 
respondent's wilful failure to provide 
relevant information, to answer questions fully, or to furnish 
documents and the respondent's misrepresentation in a disclosure 
are misconduct, regardless of the merits of the matters asserted 
in the grievance." 
No. 
2006AP1045-D   
 
5 
 
M.B. paid him $600.  M.B. claimed he paid an additional $600 to 
file a bankruptcy petition, but Attorney Engelbrecht denied 
receiving this payment.   
¶10 Attorney Engelbrecht never filed either a divorce or 
bankruptcy petition.  He originally told the OLR that he drafted 
the divorce petition in 2001 but did not file it because M.B. 
could not provide an address for his wife.  Attorney Engelbrecht 
gave the OLR conflicting information about his efforts to locate 
her.  Public court records confirmed that M.B.'s wife was in the 
Green Bay area and her address was available during this time. 
¶11 In December 2003 Attorney Engelbrecht prepared a 
divorce petition and at Attorney Engelbrecht's request, M.B. 
paid a $125 check to cover the cost of serving his wife by 
publication.  In July 2004, when M.B. filed a grievance against 
Attorney Engelbrecht, he still had not commenced the divorce 
action.  After being notified of the grievance, Attorney 
Engelbrecht returned M.B.'s $600 fee and the uncashed $125 
check.   
¶12 The OLR made repeated requests for copies of Attorney 
Engelbrecht's 2001 receipt books to establish whether he had 
received the bankruptcy fee that M.B. alleged he had paid.  
Attorney Engelbrecht did not comply.  In addition, Attorney 
Engelbrecht did not produce any records for investigators.  When 
asked what account he had used to deposit B.M.'s and M.B.'s 
advance fees and cost payments, Attorney Engelbrecht represented 
he did not have a trust account.  However, further investigation 
revealed evidence to the contrary. 
No. 
2006AP1045-D   
 
6 
 
¶13 The OLR made multiple requests to Attorney Engelbrecht 
for his trust account records.  His responses were incomplete 
and 
his 
statements 
were 
inconsistent 
with 
previous 
representations.   
¶14 Attorney Engelbrecht stipulates to an additional four 
counts of misconduct arising out of his representation of M.B.  
Count Four states that by failing to file a divorce action for 
M.B. for approximately three years Attorney Engelbrecht failed 
to act with reasonable diligence, contrary to SCR 20:1.3.  Count 
Five states that Attorney Engelbrecht failed to keep records 
regarding transactions in his client trust account, contrary to 
current SCR 20:1.15(e) and (f).4  Count Six states that by 
                                                 
4 SCR 20:1.15(e) and (f) provide detailed requirements for 
maintaining a lawyer trust account.  In relevant part:   
(e) Operational requirements for trust accounts. 
 
(1) . . . Each 
trust 
account 
shall 
be 
maintained 
in 
a 
financial 
institution 
that 
is 
authorized by federal or state law to do business in 
Wisconsin and that is located in Wisconsin or has a 
branch office located in Wisconsin, and which agrees 
to comply with the overdraft notice requirements 
. . . . 
. . . . 
 
(6) Record retention.  A lawyer shall maintain 
complete records of trust account funds and other 
trust property and shall preserve those records for at 
least 6 years after the date of termination of the 
representation. 
. . . . 
 
(8) . . . Each lawyer who receives trust funds 
shall maintain at least one demand account, other than 
the trust account, for funds received and disbursed 
No. 
2006AP1045-D   
 
7 
 
                                                                                                                                                             
other than in the lawyer's trust capacity, which shall 
be entitled "Business Account," "Office Account," 
"Operating Account," or words of similar import. 
(f) Record-keeping 
requirements 
for 
trust 
accounts. 
 
(1) . . .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 . . . . 
 
. . . . 
 
(2) . . .Complete records of a trust account 
that is a non-demand account shall include all of the 
following: 
 
 
a. all 
monthly 
or 
other 
periodic 
statements provided by the financial institution to 
the lawyer or law firm; and 
 
 
b. all 
transaction 
records, 
including 
passbooks, records of electronic fund transactions, 
duplicates of any instrument issued by the financial 
institution from funds held in the account, duplicate 
deposit slips identifying the source of any deposit, 
and duplicate withdrawal slips identifying the purpose 
of any withdrawal. 
 
(3) . . .A lawyer who receives trust property 
other than funds shall maintain a property ledger that 
identifies the property, date of receipt, owner, 
client or matter, and location of the property.  The 
ledger shall also identify the disposition of all of 
the trust property received by the lawyer.  
 
. . . . 
 
(4) . . .A lawyer who maintains trust account 
records by computer shall maintain the transaction 
register, client ledgers, and reconciliation reports 
in a form that can be reproduced to printed hard copy. 
No. 
2006AP1045-D   
 
8 
 
failing to provide requested records, and by giving conflicting 
answers and making misrepresentations, Attorney Engelbrecht 
failed to provide relevant information and answer questions 
fully, or furnish documents, contrary to SCR 22.03(6).  Count 
Seven alleges that Attorney Engelbrecht failed to submit full 
trust account records to the OLR for its inspection, audit and 
use, contrary to current SCR 20:1.15(e)(7).5 
¶15 Attorney 
Engelbrecht 
stipulates 
that 
he 
fully 
understands the misconduct allegations and the ramifications 
should the court impose the stipulated level of discipline.  He 
also represents that he understands his right to contest this 
matter, his right to consult with counsel and that his 
stipulation is made knowingly and voluntarily.  He further 
represents that he admits all misconduct alleged in the 
stipulation and agrees to the level and type of discipline 
sought by the OLR, including the reinstatement condition.  He is 
aware that the imposition of a six-month suspension of his law 
                                                 
5 SCR 20:1.15(e)(7) provides:   
(7) Production of records.  All trust account 
records have public aspects related to a lawyer's 
fitness to practice.  Upon request of the office of 
lawyer regulation, or upon direction of the supreme 
court, the records shall be submitted to the office of 
lawyer regulation for its inspection, audit, use, and 
evidence under any conditions to protect the privilege 
of clients that the court may provide.  The records, 
or an audit of the records, shall be produced at any 
disciplinary proceeding involving the lawyer, whenever 
material.  Failure to produce the records constitutes 
unprofessional conduct and grounds for disciplinary 
action. 
No. 
2006AP1045-D   
 
9 
 
license results in his suspension until and unless he pursues 
successfully his petition for reinstatement pursuant to SCR 
22.29 through 22.33. 
¶16 Attorney Engelbrecht specifically agrees to a six-
month license suspension as well as to the conditions for 
reinstatement.  The conditions are that he furnish to the OLR 
all trust account records not previously provided from January 
2001 through December 2005, including monthly bank statements, 
cancelled 
checks, 
deposit 
slips, 
check 
stubs, 
registers, 
journals, and ledgers used to record transactions in his client 
trust account.  He understands that should he be unable to 
provide this information he will furnish to the OLR a sworn 
statement detailing what records were maintained, what efforts 
were taken to locate them or obtain them from his bank, and why 
he would be unable to produce them. 
¶17 We adopt the findings of fact and conclusions of law 
to which the parties have stipulated concerning Attorney 
Engelbrecht's professional misconduct.  We determine that the 
seriousness of the misconduct warrants the stipulated six-month 
license 
suspension 
and 
the 
agreed 
upon 
conditions 
of 
reinstatement.  In response to this court's order to show cause, 
the OLR is not seeking restitution at this time. 
¶18 IT IS ORDERED the license of Richard A. Engelbrecht to 
practice law in Wisconsin is suspended for six months, effective 
the date of this order. 
¶19 IT IS FURTHER ORDERED that reinstatement of Richard A. 
Engelbrecht's license to practice law is conditioned on him 
No. 
2006AP1045-D   
 
10 
 
providing to the OLR all trust account records not previously 
provided from January 2001 through December 2005, including 
financial records described in the stipulation.    
¶20 IT IS FURTHER ORDERED that Richard A. Engelbrecht 
comply with the provisions of SCR 22.26 concerning the duties of 
a person whose license to practice law in Wisconsin has been 
suspended.    
 
No. 
2006AP1045-D   
 
 
 
1