Opinion ID: 2257568
Heading Depth: 1
Heading Rank: 5

Heading: conclusion

Text: In denying that he violated Rule 16-609, Respondent first notes that the purpose of the prohibition on drawing an instrument on a trust account payable to cash or bearer is to ensure that escrow funds are dispersed to identifiable receivers. Respondent argues that he did not issue any check or instrument on the account to cash or bearer but only to himself and to an identifiable Wells Fargo account, neither of which violate the letter or spirit of Rule 16-609. We hold that Respondent violated Rule 16-609, but disagree with the basis upon which the hearing judge found a violation of the rule. We base our conclusion on different grounds. Respondent correctly points out that his transfer of funds from the account to a Wells Fargo account did not violate the Rule because the funds were transferred to an identifiable account, and not to cash or to bearer. While Respondent did not draw an instrument on his trust account that was payable to cash or to bearer, he did violate the rule by using funds in the account for an unauthorized purpose. The hearing judge, therefore, erred in not citing Respondent's cash withdrawal of twenty-thousand dollars as a violation of the Rule. Cash withdrawals from an escrow account clearly frustrate the Rule's purpose, which is to enable one who is authorized to do so to trace the disposition of escrow funds. Attorney Griev. Comm'n v. Harper, 356 Md. 53, 65, 737 A.2d 557, 563 (1999).