587 Clients

The New Jersey Supreme Court has reprimanded an attorney for escrow account violations described by the Disciplinary Review Board

the parties stipulated that respondent had violated RPC 1.15(a) by allowing the Firm’s ATA to remain out of trust for five years, thus, perpetuating an “ongoing and significant invasion of client funds.” Further, respondent stipulated that he had violated RPC 1.15(d) by failing to maintain the Firm’s books and records in compliance with R. 1:21-6.
Specifically, as respondent admitted, during the period in which he was responsible for maintaining the Firm’s financial records, the Firm’s ATA routinely carried an average $360,000 deficit in entrusted client funds. However, the record reflects that the monthly invasions preceded respondent’s employment with the Firm and persisted after he left; therefore, in our view, respondent cannot be held wholly responsible for the substantial ATA deficit.

Nevertheless, it is unquestionable that, as the attorney responsible for maintaining the Firm’s finances, respondent failed to correct the Firm’s ongoing negligent misappropriation of 587 client’s funds, in violation of RPC 1.15(a).

(Mike Frisch)