Opinion ID: 2636855
Heading Depth: 2
Heading Rank: 2

Heading: Count II The Clearly Colorado Matter

Text: On June 19, 1995, about two months before Kas-Don was dissolved, Clearly Colorado, L.L.C. entered into a contract with Kasnoff to purchase the latter's one-half interest in Kas-Don real estate. The contract provided that Clearly Colorado would pay a $5000 earnest money deposit, and that this would be held in Cleland's trust account. After receiving the $5000, Cleland used the trust funds for his own use. This was not authorized. [4] The real estate transaction fell through and Clearly Colorado demanded the return of its $5000 deposit. Because he had already diverted the trust funds, however, the balance in Cleland's trust account on August 3, 1995, was only $66.40. Nevertheless, on August 15, 1995, Cleland wrote a $5000 check drawn on his trust account as a refund to Clearly Colorado. This $5000 was paid from the proceeds of the Kas-Don transaction referred to in Count I above. The board concluded that Cleland knowingly misappropriated client funds to reimburse Clearly Colorado in violation of Colo. RPC 8.4(c) (engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation).