Sixty Year Career Ends in License Revocation

A 75-year-old attorney who was admitted to practice in 1962 has had his career end in license revocation by the Iowa Supreme Court.

The attorney had no prior discipline.

The problem involved handling of client funds

…we find by a convincing preponderance of evidence that Kelsen’s trust account violations included the conversion of $7500 worth of client funds without a colorable future claim to those funds. Kelsen’s claim of an oral loan agreement is not credible, and we also reject his contention that, even without a loan agreement, he would have a colorable future claim to the funds based on an expected contingent case settlement. “This conduct alone is enough to support revocation, and it is unnecessary for us to further consider the impact of his other unethical conduct.”

The attorney received fees in connection with a client’s discharge from employment. The attorney’s wife  suffered from health problems, he lost and could not replace his secretary and had firm funds stolen from him by his stepson.

Nonetheless

While stating that it understood Mr. Kelsen’s personal situation, the [Grievance] commission noted that personal difficulties do not excuse trust account violations. Still, as a mitigating factor, the commission took into account Kelsen’s lack of prior ethical violations. It also presumed that Kelsen had been through several successful trust account audits in the past. The commission ultimately recommended a public reprimand as a sanction.

The court vigorously rejected reprimand as a sanction for misuse of entrusted, unearned fees.

This case is noteworthy as a reminder of the stunning disconnect between the profession (here the Grievance Commission) and the court regarding the seriousness of and sanction for mishandling entrusted funds.

A proposed reprimand becomes a revocation. An attorney with no prior discipline who was admitted to practice prior to my 1963 bar mitzvah has his career end in infamy.

A cautionary tale. (Mike Frisch)