Avoiding Garnishment

A consent suspension of 30 days was accepted by a tri-county hearing panel of the Michigan Attorney Discipline Board

The complaint specifically alleged that in July 2020, the Attorney Grievance Commission received notice that a check presented against respondent’s IOLTA account was rejected due to insufficient funds, prompting an overdraft of the account. In response to a Grievance Administrator’s Request for Investigation, and during the Administrator’s subsequent investigation, respondent admitted that he transferred “future payroll funds” into his IOLTA to secure funds from an IRS levy and possible garnishment, deposited earned fees into the same account, and used it to make two premium payments for his legal malpractice insurance.

Based upon respondent’s admissions and the stipulation of the parties, the panel found that respondent held funds other than client or third person funds in an IOLTA, in violation of MRPC 1.15(a)(3); deposited his own funds into an IOLTA in an amount more than reasonably necessary to pay financial institution service charges or fees, in violation of MRPC 1.15(f); engaged in conduct involving dishonesty, fraud, deceit, or misrepresentation, where such conduct reflects adversely on the lawyer’s honesty, trustworthiness, or fitness as a lawyer, in violation of MRPC 8.4(b). The panel also found that respondent violated MRPC 8.4(a), and MCR 9.104(2) and (3).

(Mike Frisch)