Proposed Break For Escrow Violations

A relatively lenient sanction for misuse of client funds has been recommended by an Illinois Hearing Board.

Respondent represented eight clients in obtaining  reductions in their property tax assessments and property tax refunds. After  receiving property tax refunds on behalf of these clients and before paying  them, Respondent used all or a portion of the funds received for his own  purposes. In total, he used approximately $125,000 in client funds. While still  serious, we found Respondent’s actions to be the result of poor accounting  practices and not dishonest motives. There were numerous facts that mitigated  his conduct. We recommend Respondent be suspended from the practice of law for  one year, with the last seven months stayed by an eighteen-month period of  probation with conditions.

The story

Respondent’s clients never complained about him to the ARDC and never contacted him regarding the whereabouts of their money.  Respondent still represents some of clients listed in the Complaint.

The ARDC investigation into these matters first  began in September 2011 when Respondent’s client trust account was overdrawn and  the bank notified both Respondent and the ARDC regarding the overdraft. His  client trust account was again overdrawn in October and December 2011 and for  the last time in December 2012, and his bank again notified both him and the ARDC regarding these overdrafts. The ARDC  contacted Respondent directly regarding each bank notification. Despite being  first notified about the ARDC investigation in 2011, Respondent did not perform  an audit of his client trust account in 2011 or 2012.

This was a good if somewhat late-blooming idea

In early 2013, Respondent read the Illinois Rules  of Professional Conduct relating to trust account procedures. In April 2015, he  completed a client trust account webinar. He accepts full responsibility for not  maintaining properly his client trust account and expressed remorse and regret  for his conduct.

The board found considerable compelling mitigation. (Mike Frisch)