August 8, 2011
Bounced Check Leads To Resignation
An attorney who had misappropriated settlement proceeds resigned from the Bar. The resignation was accepted by the New York Appellate Division for the First Judicial Department:
...[the attorney] acknowledges that during the course of her representation of a client, she deposited settlement proceeds in the amount of $22,000 into her attorney escrow account and, after withdrawing disbursements and her legal fee, and paying outstanding medical liens, she withdrew the net proceeds of $7,999.61, due to her client, for her own personal use. Thereafter, respondent deposited personal funds into her escrow account to replace the converted funds and disbursed the funds to her client that she was entitled to receive. Respondent has consulted with counsel and has determined that her resignation as an attorney is appropriate at this time.
The Committee learned of this matter upon receipt of a bounced check notification from the Lawyer's Fund for Client Protection. The Committee reports that there are no outstanding complaints against respondent from clients as a result of the misconduct for which she is resigning. The client at issue never complained to the Committee, presumably because she was unaware that her funds had been misappropriated by respondent and then replaced.
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