Theft Enabler Gets Suspended

The Indiana Supreme Court ordered a suspension of not less than six months without automatic reinstatement of an attorney’s whose failure to register a trust account facilitated another lawyer’s thefts.

Respondent maintained two attorney/client trust accounts (“Trust Accounts”), neither of which were registered as an Interest on Lawyers Trust Account (“IOLTA”). Respondent did not notify the banks that the Trust Accounts were subject to overdraft reporting to the Commission. On his Attorney Annual Registration Statements from 2008 through 2011, Respondent falsely stated that he was exempt from maintaining an IOLTA. Over several years, Respondent shared signatory authority for the Trust Accounts with another lawyer, who stole money from the Trust Accounts. This resulted in overdrafts, which were not reported to the Commission because the accounts were not registered as IOLTA accounts. By failing to properly register the Trust Accounts as IOLTA accounts, Respondent enabled the other lawyer to steal client funds from those accounts.

He also falsely denied that he charged non-refundable retainers. (Mike Frisch)