Opinion ID: 1256160
Heading Depth: 2
Heading Rank: 1

Heading: Count1 Complaint of Margo Bruce

Text: Ms. Margo Bruce retained Mr. Wheaton in 1999 to represent her in a civil action. She paid an initial fee of $300.00, then a second fee of $150.00. A settlement was reached on or about September 21, 2000, in the amount of $15,000.00. Mr. Wheaton deposited the settlement check into his business account, as he did not have an IOLTA [3] account activated at the time. Mr. Wheaton proceeded to write a check to Ms. Bruce in the amount of $10,000.00, for her portion of the settlement proceeds. The check failed to clear due to lack of sufficient funds. Mr. Wheaton explained the situation as a banking error and promised prompt payment to Ms. Bruce. When Mr. Wheaton failed to pay Ms. Bruce, she contacted local law enforcement, and a felony worthless check warrant was issued. Thereafter, Mr. Wheaton obtained a cashier's check for $10,000.00. Mr. Wheaton told both the ODC and the local law enforcement authorities that Ms. Bruce would shortly receive her money and sent copies of the cashier's check to both law enforcement and the ODC as proof of payment. Ms. Bruce never received this check. However, it was later discovered that the check had been cashed. Local law enforcement investigated and learned the check had been redeposited into Mr. Wheaton's own account. During the evidentiary hearing before the Board, Mr. Wheaton admitted that he redeposited the same into his personal account to cover the closing costs of his personal residence. As a result of the abovementioned conduct, the Board found that Mr. Wheaton violated Rule 1.15 of the Rules of Professional Conduct [4] by failing to set up, maintain, and/or deposit the settlement check into a proper trust account. The Board found a second violation of Rule 1.15 because Mr. Wheaton failed to deliver Ms. Bruce her funds, and additionally, converted the same to his own personal use. As a result of failing to have a written contingency fee agreement and failing to provide an itemized statement, the Board found Mr. Wheaton violated Rule 1.5(c) [5] of the Rules of Professional Conduct. Moreover, the Board found Mr. Wheaton's intentional taking of a client's funds for his own use and his misrepresentations to both his client and to law enforcement officials was a violation of Rule 8.4. [6] Additionally, Mr. Wheaton's misrepresentations made to the ODC during the investigative process violated Rule 8.1. [7]