Opinion ID: 2326693
Heading Depth: 3
Heading Rank: 1

Heading: The IOLTA Account

Text: Respondent takes exception to several of Judge Souder's findings regarding his handling of the IOLTA account. First, he challenges Judge Souder's finding that he knew that the funds were not available in the account ending in 7646 at the time he wrote the [$500] check. Respondent, notably, does not dispute Judge Souder's finding that he overdrew the 7646 account. Rather, he disputes the Judge's finding that he knowingly did so. Maryland Rule 16-609(c) prohibits an attorney from disbursing funds from a trust account if the disbursement would create a negative balance.... [5] Rule 16-609 does not contain an intent requirement. See Attorney Grievance Comm'n v. Awuah, 346 Md. 420, 435, 697 A.2d 446, 454 (1997) (explaining that [c]laimed ignorance of ethical duties and bookkeeping requirements is not a defense in disciplinary proceedings). Consequently, for purposes of Rule 16-609 it matters not whether Respondent intentionally overdrew the IOLTA account. We recognize, though, that a finding with respect to the intent with which a violation was committed is relevant on the issue of the appropriate sanction. Awuah, 346 Md. at 435, 697 A.2d at 454. Therefore, we consider for that purpose whether Judge Souder erred in finding that Respondent knowingly overdrew the account. Judge Souder found that, on November 1, 2008, Respondent wrote a check on the 7646 trust account equal to the entire balance remaining in the account, in order to transfer the funds to a new account. On November 3, 2008, Respondent wrote a separate check for $500 on the 7646 account. Judge Souder found that, based on the November 1 check, Respondent knew that the funds were not available for the second, $500 check at the time he wrote it. Respondent argues that he was told by a bank teller on November 3 that the 7646 account balance had not yet been transferred. Even if true, that fact does nothing to undermine Judge Souder's finding that Respondent knew that the account lacked sufficient funds to cover both the November 1 and November 3 checks. We therefore overrule Respondent's exception to Judge Souder's factual finding that he knowingly created a negative balance in his trust account, and, upon our independent assessment of the record, we conclude that Respondent violated Md. Rule 16-609(c). Respondent next argues that the evidence produced at the hearing did not show that he failed to create records, for deposits and disbursements, and, consequently, he excepts to Judge Souder's conclusion that he violated Md. Rule 16-606.1. Subsection (a)(2) of this Rule requires attorneys to keep a record of their trust accounts that chronologically shows all deposits and disbursements[.] Additionally, subsection (a)(3)(A)(iv) requires that every disbursement record include the payee and the check number or other payment identification[.] [6] Judge Souder found that Respondent failed to create a record for his IOLTA account that chronologically showed all deposits and disbursements, and by doing so he violated Maryland Rule 16-606.1. During Respondent's testimony at the hearing, Bar Counsel asked: Did you maintain at that time, November 1, 2008, a running chronological ledger of the amount that was maintained in your attorney trust account ending in 7646? Respondent answered: If you mean in addition to my statement [from the bank], the answer is no. Moreover, Respondent's Client Escrow Ledger[s], which were entered into evidence, do not include all the information required by Rule 16-606.1. Specifically, the ledgers do not describe the check number or other payment identification for disbursements. Md. Rule 16-606.1(a)(3)(A)(iv). We therefore overrule Respondent's exception to Judge Souder's factual findings that he failed to keep his trust account records showing all deposits and disbursements, and we conclude, upon our independent review of the record, that Respondent violated Md. Rule 16-606.1. Respondent's violations of Md. Rules 16-609(c) and 16-606.1, in turn, constitute a violation of MRPC 1.15(a). [7]