Cashing Out Violates Trust Rules

The Massachusetts Board of Bar Overseers accepted a stipulated reprimand for escrow account violations by an attorney ‘s who “concentrates his practice in personal injury”

Beginning no later than April 2017, and continuing until at least September 2020, the respondent withdrew his earned fees from the IOLTA account via cash withdrawals rather than by prenumbered checks. Beginning no later than October 1, 2018, the respondent has failed to keep records in compliance with Mass. R. Prof. C. 1.15 for the IOLTA account. He also failed to maintain a check register with a client identifier for each transaction and with a running balance, and failed to perform a three-way reconciliation at least every sixty days and to prepare and retain reconciliation reports. He also failed to keep individual ledgers for each client matter and a ledger for bank charges.

By making cash withdrawals from the IOLTA account, the respondent violated Mass. R. Prof. C. 1.15(e)(4) and (5). By failing to maintain a compliant check register, individual client ledgers, a bank fees and charges ledger, and by failing to perform and maintain three-way reconciliation reports for the IOLTA account, the respondent violated Mass. R. Prof. C. 1.15(f)(1)(B), (C), (D) and (E).

(Mike Frisch)