Opinion ID: 2292344
Heading Depth: 1
Heading Rank: 4

Heading: audit ii.

Text: Respondent's books and records were audited for the second time January 31, 1983 after DEPS received a letter from the United States Bankruptcy Court dated January 4, 1983 indicating that Respondent's check for a $60.00 filing fee was returned for insufficient funds. Although Respondent was advised by letter dated November 24, 1982 that the check had to be replaced immediately, Respondent did not make good on the check until January 7, 1983. An audit of Respondent's books and records revealed that his bank account showed that the account was in an overdrawn condition at various times. The bank statement for October, 1982 revealed that the opening balance was negative $157.35 and the closing was negative $407.89. Fifteen return item charges or overdraft charges were incurred during that period. Respondent told the auditor that the bank unilaterally closed his account because of the overdrawn condition, adding, however, that Respondent's father had resolved the account overdraw. The audit revealed that Respondent's clients' trust ledger was not maintained on a current basis. The audit further disclosed that Respondent had issued trust checks against uncollected funds and in excess of available funds standing to the credit of the client. On December 6, 1983 a two-Count ethics complaint was filed against Respondent charging that as a result of the audits, he violated DR 9-102. Respondent filed an answer January 15, 1984. During the Ethics Committee hearing on June 20, 1984 Respondent stipulated to facts contained in the audit reports and complaint. Respondent informed the Committee that about 15% of his practice was devoted to the general public practice of law, with the balance devoted to a family operated business. Respondent stated that an accountant has reconstructed his records and that he has hired a bookkeeper to maintain these records according to court rules. He added no clients were injured as a result of his inadequate record keeping. The Committee found Respondent's conduct unethical and unprofessional and recommended that a private reprimand be issued, finding that this would constitute adequate discipline in light of the corrective measures undertaken by Respondent.