That’s What Makes A Horse Race

An Illinois Hearing Board has recommended a 90-day suspension and probation for an attorney who

represented a client who trained racehorses after six of his horses tested positive for an unauthorized substance. After several months of litigation including the filing of a TRO and appeal, Respondent applied the client’s costs credit to his outstanding balance for attorney’s fees. The client maintained he never authorized this and asked for a refund of the unused costs.

The Administrator’s one-count First Amended Complaint charged Respondent with failing to promptly deliver funds to a client, in violation of 1.15(d), and engaging in conduct involving dishonesty, fraud, deceit or misrepresentation, in violation of 8.4(c). The Hearing Panel found the Administrator failed to prove Respondent violated 8.4(c) and failed to prove Respondent failed to promptly deliver funds to the client. However, the Hearing Panel did find Respondent failed to provide a prompt and appropriate accounting to the client in violation of Rule 1.15(d). Given Respondent’s disordered office management, particularly with respect to his financial accounts, and his poor client communication, the Hearing Panel recommended Respondent be suspended for ninety days, stayed in its entirety, by a one-year period of probation with conditions.

On the need for probation

In this matter, it is unclear if Respondent knows what funds should be kept in a client trust account or if he even maintains a client trust account. He does not keep a ledger for each client matter and does not reconcile his bank statements. Respondent withdraws funds based on his mental estimate of fees earned, but admitted he sometimes withdraws fees as funds are received even if they have not yet been earned. He also admitted he has taken out more than he made. Respondent’s reliance on his phone log in this proceeding is illustrative of his mistaken belief he manages his professional communications effectively. As a result, Respondent’s continued right to practice needs to be monitored. Conditional probation would best safeguard the public and provide assurance that his disordered office management and poor communication are addressed.

(Mike Frisch)