Surplusage

A demand audit revealed that an attorney held nearly half a million dollars in his escrow account without explanation and drew a consent reprimand from the New Jersey Supreme Court.

The Disciplinary Review Board explained

the parties stipulated that respondent violated RPC 1.15(b) and RPC 1.15(d).

Respondent admittedly held, in the firm’s ATA, a surplus of funds totaling $462,705.07, for which he was unable to determine the origin or to whom the funds belonged. Respondent allowed this inactive balance to remain in the firm’s ATA, despite the OAE’s directive that he correct that deficiency. Further, as of the date of the stipulation, the funds remained in the firm’s possession. Respondent, thus, violated RPC 1.15(b) by failing to “promptly deliver to the client or third person any funds or other property that the client or third person is entitled to receive.”

On the plus side of the ledger

In mitigation, respondent admitted his wrongdoing and entered into a disciplinary stipulation. Additionally, he has no disciplinary history in his forty years at the bar, a factor to which the Board accorded significant weight.

(Mike Frisch)