Misuse Of Trust Account Draws Suspension In One Case, Reprimand In Another

An attorney who had misused his trust account has been suspended for 120 days by the Hawai’i Supreme Court.

we conclude that, between February 1, 2014 and January 31, 2015, the client trust account maintained by Respondent Wilson primarily received his monthly Social Security payments, with no deposits of client funds identified and, during the same period, Respondent Wilson made 61 withdrawals by check in favor of himself as well as payments by check to a variety of Honolulu businesses and 150 electronic transfers to local and national companies, at a time when there were substantial federal and state tax liens outstanding against him. We further conclude Respondent Wilson misrepresented, in his 2014 and 2015 registration with the Hawai#i State Bar Association, that he was operating his client trust account in accordance with the relevant court rules…

Sanction factors

In aggravation, we find Respondent Wilson had a dishonest or selfish motive, substantial experience of more than 35 years in the practice of law, and one prior discipline in 1992 and that, in the present matter, there were multiple offenses and a pattern of misconduct. We note that, in his initial answer to ODC, Wilson did not admit the wrongful nature of his conduct.

In mitigation, we note Wilson has expressed remorse and a cooperative attitude toward the proceedings and that, once notified of the client trust account violations by ODC, took steps to rectify the situation by opening a regular account and redirecting his benefits to the new account.

The court imposed a public reprimand in a unrelated case in which the attorney had deposited personal funds and paid a debt out of a trust account.

On August 9, 2012, Respondent Smith, in order to pay a personal debt, intentionally deposited $14,361.26 of personal funds into his First Hawaiian Bank client trust account ending in x128. This conduct violated Rule 1.15(c) of the Hawai#i Rules of Professional Conduct (HRPC) (1994). On August 13, 2012, Respondent Smith issued a $12,168.67 check from the client trust account to the management company of his rental unit, for partial payment of maintenance fees, late fees, lease rent, and attorneys’ fees and costs for which he was in arrears, and transmitted the check to the management company. This conduct violated HRPC Rule 1.15(e).

Sanction

In aggravation, we find Respondent Smith has extensive experience in the practice of law and two prior disciplinary matters on his record. In mitigation, we find Respondent Smith has taken responsibility and expressed remorse for his actions and has evinced, in the past, good character and reputation, including commitment to public service and the provision of legal services to the indigent, and we further find that none of Respondent Smith’s clients suffered any injury as a result of his actions in the present matter. In light of the above, we conclude a public reprimand is warranted.

(Mike Frisch)