Employee Theft And Appropriate Remedial Action Draws Reprimand

The Georgia Supreme Court has reprimanded an attorney for trust account violations caused by a faithless employee

the special master found that the Bar had shown, by clear and convincing evidence, only that Pass had taken money in advance from her client to be used for fees and expenses connected to an investigation she was to perform for the client; that she deposited the unearned expenses into her IOLTA account, but then failed to review, audit, or otherwise reconcile that account; that unbeknownst to Pass, her office manager—a longtime friend and nonlawyer employee—was accessing Pass’s IOLTA account and obtaining funds via forged checks; and that, as a result, there were multiple times where Pass’s IOLTA account carried a balance that was less than the almost $4,000 she should have been holding in trust on her client’s behalf. The special master found that Pass was unaware of her employee’s illegal actions until several months after that employee abruptly left Pass’s employment, absconding with a firm computer and other office equipment and materials; that after discovering the thefts, Pass was able, over time, to restore enough of ‘the stolen funds to replace the money she was required to return to her client; and that those funds now have been returned to the client. The special master specifically noted that there was no allegation that Pass was involved in, or even contemporaneously knew of, her employee’s withdrawal of the client’s funds from Pass’s IOLTA account.

(Mike Frisch)