Attorney Suspended For Commingling Funds, Improper Withdrawals, Failure To Reconcile Account
In Matter of Lenowitz, 2018 N.Y. App. Div. LEXIS 2461 (1st Dept. Apr. 11, 2018), despite 42 years of practice and a single admonition, an attorney’s routine disregard for proper financial management led to a two-year suspension for misappropriation of estate funds, commingling of personal funds with client funds, and improper cash withdrawals and disbursements.
Law Ledgers would have been able to detect and prevent the commingling of personal funds with client funds, cash withdrawals and disbursements for personal and business expenses, and failure to properly reconcile the Special Account. Additionally, Law Ledgers could have helped the attorney to institute remedial bank and bookkeeping measures to ensure compliance with the rules and regulations governing the proper maintenance of an attorney’s special account. By working with Law Ledgers, the attorney could have minimized the risk of facing disciplinary action and protected the funds of his clients.
Unintentional Escrow Misconduct Results In Two Year Suspension
The Court in this case suspended the attorney despite the attorney’s remedial efforts and over 42 years of practicing law:In seeking a sanction no greater than a censure, the respondent’s counsel contends, inter alia, that the respondent’s misconduct was not intentional, that he admitted his misconduct, took immediate corrective action by remitting the funds once alerted to his error, and paid interest on the funds at the rate of nine percent. In mitigation, among other things, the respondent offers evidence of his good character, his efforts to institute remedial bank and bookkeeping measures, his cooperation with the petitioner’s investigation, and his limited disciplinary record in 42 years of practice, having received a single admonition, which was issued approximately 20 years ago for engaging in a conflict of interest. Notwithstanding the mitigation advanced, the respondent routinely commingled personal funds with client funds, made improper cash withdrawals and disbursements for personal and business expenses, and failed to properly reconcile the Special Account. The respondent’s disregard of the rules governing the proper maintenance of an attorney’s special account was not isolated, and resulted in the misappropriation of the Burton estate funds. Under the totality of the circumstances, notwithstanding the mitigating factors advanced by the respondent and the request that a public censure be imposed, we find that a suspension from the practice of law for a period of two years is warranted (see Matter of Farkas, 133 AD3d 81, 18 N.Y.S.3d 117).
Law Ledgers would have been able to detect and prevent the commingling of personal funds with client funds, cash withdrawals and disbursements for personal and business expenses, and failure to properly reconcile the Special Account. Additionally, Law Ledgers could have helped the attorney to institute remedial bank and bookkeeping measures to ensure compliance with the rules and regulations governing the proper maintenance of an attorney’s special account. By working with Law Ledgers, the attorney could have minimized the risk of facing disciplinary action and protected the funds of his clients.
