Interception Of Fee Payments Alleged
The Illinois Administrator has filed a complaint alleging misconduct by a law firm associate
Prior to December 20, 2024, Respondent was employed with The Law Offices of Russell D. Knight, P.C., with offices in Chicago and in Naples, Florida. Respondent was admitted to practice law in Florida on April 16, 2020, lives in Florida and worked for The Law Offices of Russell D. Knight, P.C.at the firm’s Florida location.
Respondent originally worked for Mr. Knight’s law firm as a law clerk and later as an associate attorney. Respondent has never had an ownership interest in Mr. Knight’s law firm and was instead compensated as a salaried employee. Any funds Respondent received from Mr. Knight’s clients in payment of legal fees belonged to Mr. Knight’s law firm and not to Respondent.
Beginning on or before May 16, 2023, Respondent began to intercept fee payments made by clients to him for the benefit of Mr. Knight’s law firm, either by check or by Zelle (an electronic means to transfer funds between individuals or entities). Between May 16, 2023, and November 22, 2024, in at least 14 instances, Respondent received a total of at least $25,409.50 that was the property of Mr. Knight’s law firm and, instead of notifying Mr. Knight of his receipt of those funds or causing them to be credited as fee payments on the firm’s internal ledgers, used them for his own business and personal purposes. Respondent’s use of those funds constitutes conversion of fee payments due Mr. Knight’s law firm.
Further, he allegedly had a client’s “benefactor” send him fee payments after her retainer was exhausted
On December 6, 2024, Respondent overdrew his BoA account by -$600.44, and as of that date, Respondent had used all Knight firm fee payments which he had collected without authorization, in the amount of at least $37,242.50, for his own business or personal purposes.
And
On October 8, 2024, the client’s benefactor mistakenly wire-transferred $50,000 to Respondent’s personal BOA account ending in the last four digits 2024. Rather than promptly notify the benefactor, the client, or Mr. Knight of the mistake, Respondent later used those funds for his own purposes, although he knew that the funds had been sent to him in error and that he was not entitled to use them for himself.
Beginning on October 16, 2024, and continuing for several weeks thereafter, attorneys for the benefactor for Respondent’s client contacted him to demand the return of the $50,000 payment. Later, those attorneys also contacted Mr. Knight directly. During that entire time, Respondent never returned any of the funds to the client’s benefactor or to anyone authorized to act on that person’s behalf, nor had he taken any action to do so.
On several occasions between October 16, 2024, and December 3, 2024, in oral statements and in email messages, Respondent told those attorneys and Mr. Knight that he had already returned the funds, that they were in the process of being returned, or that there was going to be an unanticipated delay of up to three additional days to return the funds.
As of November 5, 2024, the balance of Respondent’s BoA account fell to $9.55, as Respondent drew checks or made other withdrawals from the account in payment of his business or personal obligations.
As of November 5, 2024, Respondent had used for his own purposes at least $49,990.45 of funds he had received in error from the client’s benefactor, without authority.
(Mike Frisch)