Opinion ID: 1240558
Heading Depth: 1
Heading Rank: 2

Heading: Trust Fund Matter

Text: Respondent was the sole proprietor of a firm that did a large amount of collection work. In 1997, he merged his practice with that of another firm [Firm]. As a result of the merger, certain unethical practices of respondent came to light. From 1995 to 1997, respondent failed to maintain the integrity of his trust account and of his operating account. Respondent did not timely transmit documents and checks. Further, he misrepresented and/or converted some client funds to pay other clients. Respondent handled a large number of collection matters for a Bank. He would collect funds from the Bank's debtors, then use those funds to pay himself fees for other Bank matters. The ODC identified fifteen checks whereby approximately $89,000 was improperly withdrawn from respondent's trust fund and paid into respondent's operating account. Following the 1997 merger between respondent's practice and the Firm, an audit revealed a shortfall in respondent's trust account of $37,000 to $45,000. The Firm immediately deposited $45,000 into the account. Respondent's largest client, Bank, was subsequently billed and then paid $90,000 in legal fees for work done by respondent. This money was used to offset the Firm's $45,000 deposit into respondent's trust account and to offset any client fund shortfall. The Firm eventually paid respondent $16,000, apparently after repaying itself and making all of respondent's clients whole.