Opinion ID: 1975492
Heading Depth: 1
Heading Rank: 4

Heading: Failure to Safekeep Property of Clients

Text: Respondent used the account in question to deposit funds he received in connection with the representation of his clients. He did not maintain a check register for the account. Moreover, he acknowledged that, although he knew since 1983 that a trust account is required, it was not his practice to promptly withdraw fees earned following settlement of contingency fee matters and that he would allow his personal funds to accrue in the trust account for an indefinite period of time. Respondent also failed to maintain this account as required by Title 16, Chapter 600 of the Maryland Rules and did not keep complete records of the client and/or third party funds deposited and disbursed from this account. He admitted that he kept no records regarding funds received and deposited into the account on behalf of a client identified as Cobb Financial, Inc. He asserted that he adopted the practices and procedures of several law firms with which he has been associated over the years. Respondent's failure to keep an adequate balance in the account caused a delay in the receipt of funds to which Federal Express, the third party subrogee of Crystal Brown Barnes, was entitled. It was necessary for check number 900 to be presented a second time on January 30, 1998 in order for the third party to obtain payment. Also, check number 859 payable to Litofsky, Brager & O'Brien LLC on behalf of clients identified as Deb and Roger Jones was not issued, according to the date on the check, until November 12, 1997. It was not presented until November 20, 1997, at which time it cleared. Respondent, however, waited almost two weeks after the other disbursements for these checks before he wrote check number 859. The other disbursements are dated October 30, 1997, and cleared the bank October 31 and November 4, 1997. The settlement sheet provided to these clients is dated October 28, 1997 and reflects the disbursement of payment to Litofsky, Brager & O'Brien as well as the other disbursements. (Petitioner's Exhibit 21.) Had check number 859 been presented prior to the deposit of $4,500 which was posted to the account on November 13, 1997, it would not have cleared. Respondent testified that it was his belief that check number 923 in the amount of $500, which failed to clear the bank when first presented on February 10, 1998, was eventually paid. The bank records do not reflect the payment of this check through March 31, 1998, the point at which time the Petitioner's review of the bank records ended. Payment to the client or third party entitled to check number 923 was delayed approximately six weeks. The Court concludes that Respondent violated Rule 1.15(a) and Rule 1.15(b) of the Maryland Rules of Professional Conduct. He failed to keep clients' funds separate from his own and failed to keep complete records of such funds in violation of Rule 1.15(a). Respondent withdrew funds from the account and failed to provide an adequate explanation of the use of the funds in violation of Rule 1.15(b).