Opinion ID: 1933803
Heading Depth: 2
Heading Rank: 1

Heading: CSTF Compliance Check

Text: Figliola claims that the CSTF compliance check, which revealed that Figliola had failed to perform the required monthly bank reconciliation, lulled him into a false sense of security with regard to his personal withdrawals from the real estate account. Since the accountants did not call these withdrawals to his attention, Figliola believed that they were proper. Figliola maintains that the Board erred in failing to consider this information as a mitigating circumstance. Figliola's contention is not persuasive. Figliola presented this factor to the Board in general terms, i.e., he did not refer to it specifically as a mitigating circumstance. Even though the Board failed to highlight this factor as a mitigating circumstance in the Report, there is no evidence that it failed to consider it. Disbarment is a possible sanction for knowing or reckless misappropriation of firm or client funds. See In re Higgins, Del.Supr., 582 A.2d 929 (1990) (disbarring attorney for knowingly misappropriating funds); and In re Sullivan; Del.Supr., 530 A.2d 1115 (1987) (disbarring attorney for failing to maintain accounts, offering false testimony to the Court and violating a Court order). Given the possibility of a disbarment sanction, it is probable that the Board did consider this information in determining its sanction. In any event, Figliola's contention in this regard is not credible. More generally, CSTF's efforts to assist lawyers should not be considered as absolving lawyers of the duty to read and follow Interpretive Guideline No. 2, [11] which provides for the preservation of funds and property of clients. Compliance checks performed at CSTF's direction are not audits and are not intended to verify the correctness of entries in an attorney's books and records. Accepting Figliola's claim that CSTF's failure to inform him of his unethical behavior cloaked his actions in legitimacy would place upon compliance agencies the insupportable burden of constantly policing lawyers and then providing them with an advisory opinion as to their conduct.