Opinion ID: 1780171
Heading Depth: 1
Heading Rank: 23

Heading: Criminal, fraudulent, and prohibited transactions

Text: A lawyer is required to give an honest opinion about the actual consequences that appear likely to result from a client's conduct. The fact that a client uses advice in a course of action that is criminal or fraudulent does not, of itself, make a lawyer a party to the course of action. However, a lawyer may not assist a client in conduct that the lawyer knows or reasonably should know to be criminal or fraudulent. There is a critical distinction between presenting an analysis of legal aspects of questionable conduct and recommending the means by which a crime or fraud might be committed with impunity. When the client's course of action has already begun and is continuing, the lawyer's responsibility is especially delicate. The lawyer is not permitted to reveal the client's wrongdoing, except where permitted or required by rule 4-1.6. However, theThe lawyer is required to avoid furthering the purposeassisting the client, for example, by drafting or delivering documents that the lawyer knows are fraudulent or by suggesting how itthe wrongdoing might be concealed. A lawyer may not continue assisting a client in conduct that the lawyer originally supposes issupposed was legally proper but then discovers is criminal or fraudulent. WithdrawalThe lawyer must, therefore, withdraw from the representation, therefore, may be requiredof the client in the matter. See rule 4-1.16(a). In some cases, withdrawal alone might be insufficient. It may be necessary for the lawyer to give notice of the fact of withdrawal and to disaffirm any opinion, document, affirmation, or the like. See rule 4-4.1. Where the client is a fiduciary, the lawyer may be charged with special obligations in dealings with a beneficiary. Subdivision (d) applies whether or not the defrauded party is a party to the transaction. HenceFor example, a lawyer shouldmust not participate in a sham transaction; for example, a transaction to effectuate criminal or fraudulent escapeavoidance of tax liability. Subdivision (d) does not preclude undertaking a criminal defense incident to a general retainer for legal services to a lawful enterprise. The last sentence of subdivision (d) recognizes that determining the validity or interpretation of a statute or regulation may require a course of action involving disobedience of the statute or regulation or of the interpretation placed upon it by governmental authorities. If a lawyer comes to know or reasonably should know that a client expects assistance not permitted by the Rules of Professional Conduct or other law or if the lawyer intends to act contrary to the client's instructions, the lawyer must consult with the client regarding the limitations on the lawyer's conduct. See rule 4-1.4(a)(5).