Down To $1

The Illinois Administrator has filed a complaint alleging misuse of entrusted funds in two matters.

In a personal injury matter

On October 6, 2023, Respondent deposited the $175,000 settlement check, referenced in paragraph 8, above, into his IOLTA Account.

Between October 6, 2023, and January 22, 2024, prior to making any disbursement of the settlement proceeds to St. George, Respondent drew the balance on his IOLTA Account to $1, as he made withdrawals in payment of his personal or business obligations. During that time, Respondent was required to maintain at least $116,725 in his IOLTA Account for payment of the settlement proceeds to St. George and third-party lienholders.

As of January 22, 2024, Respondent used $116,724 of the settlement proceeds from the St. George matter, which should have been remitted to St. George and third-party lienholders, for Respondent’s own business and personal purposes.

At no time did St. George or any third-party authorize Respondent to use any portion of the $116,724 for his own business and personal purposes.

In response to inquiries  about the status of the matter, Respondent texted the client’s daughter

I’m sorry Kim things are challenging at the office because I am literally doing everything myself and I can’t afford to miss a Saturday in the office let alone being laid up Saturday-Tuesday and everyone was all over me. I also felt like crap and got too sensitive when you suggested [I] stole your mom’s money because I wouldn’t do that to her nor would I do it to you.

In a matter of the sale of real estate

On March 12, 2024, Respondent deposited the net proceeds in the amount of $301,340.72 from the sale of 902 N. Ashland into his IOLTA Account. On that date, Respondent texted Morgan a photo of the deposit receipt, which indicated the funds would be available on March 21, 2024.

Alleged

As of June 7, 2024, Respondent used $271,339.73 of the real estate proceeds from the sale of 902 N. Ashland, which should have been remitted to Morgan on behalf of 902 N. Ashland, LLC, for Respondent’s own business and personal purposes.

At no time did Morgan authorize Respondent to use any portion of the $271,339.73 in real estate proceeds for Respondent’s own business and personal purposes.

In response to inquiries from the court

Respondent’s statements to the court that the full amount of the real estate proceeds from the sale of 902 N. Ashland remained in his IOLTA Account, as set forth…above, were false because Respondent had converted at least $271,339.73 of the real estate proceeds from his IOLTA Account as of June 5, 2024.

Respondent knew his statements, as set forth…above, were false when he made them.

(Mike Frisch)