Tag Archive for: escrow
Attorney’s Conversion Of Client Funds Intended To Pay For Transcript Results In Discipline.
The attorney in Matter of Castro faced 11 charges of professional misconduct stemming from his conversion of client funds. The Attorney Grievance Committee's charges included neglect of a legal matter, misappropriation of client funds, commingling…
When a law firm receives settlement funds, may or must the firm distribute the funds over and above those owed to the client (including referral fees and expenses), or must the firm instead first transfer the settlement funds to the firm’s operating account?
New York State Bar Association Special Account Guidelines for Lawyers
The New York State Bar Association Committee on Professional Ethics, in its Opinion 1127 (7/7/17), expressed the view that settlement proceeds "must be deposited into an…
Expert Notes Need For “External Accounts” As Lawyer Misappropriates $300,000 From Barclay Damon
As law firm escrow account breaches continue to impact law firms, one expert suggests external accountants. The New York Law Journal reports that a trusts and estates lawyer in Albany who was a senior partner at Barclay Damon was charged…
Inadvertent Misappropriation Earns Attorney A One-Year Suspension
Unintentional And Easily Avoidable Error Leads To Suspension Even Though Parties Agreed That Attorney "Did Not Steal Or Borrow Money From The Escrow Account"
In Matter of Polanco, a case concerning inadvertent misappropriation, the court suspended…
The Lawyers’ Fund for Client Protection paid more than $10 million in 2017, the second-largest single-year payout in the 35-year history of the fund
Second-Largest Single-Year Payout by Lawyers' Fund For Client Protection
Emphasizing the need for proper law firm accounting, the New York Law Journal reports that the New York Lawyers’ Fund for Client Protection, which reimburses clients…
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…
Attorney Suspended For Depositing Checks He Received On Behalf Of His Client Into His Own Business/Operating Account And Improperly Commingling Those Funds
In Matter of Goldsmith, 2018 N.Y. App. Div. LEXIS 1410 (1st Dept. Mar. 1, 2018), the Court suspended an attorney who deposited checks he received on behalf of his client in a breach of contract action into his own operating account…
Escrow Account Misuse Results In Attorney’s Suspension
In Matter of Kayatt, the attorney was found guilty of professional misconduct and suspended for a period of two years. The attorney had been practicing law for over 30 years, primarily focusing on matrimonial matters, when she was charged with…
Attorney Suspended For Having Maintained Personal Funds In Trust Account And Paid Business And Personal Expenses From Account
In Matter of Walters, 2018 N.Y. App. Div. LEXIS 519 (1st Dept. Jan. 30, 2018), the attorney was suspended for over two years because, among other things, he maintained personal funds in his trust account and paid business and personal expenses…