Sunday, June 23, 2013

The Ride Not Taken

The Illinois Administrator has filed ethics charges against a former Sidley Austin LLP partner:

1. Between 2007 and 2012, Respondent was a partner at Sidley Austin LLP, based in the firm’s Chicago office. During that time, he was the head partner in charge of the Chicago office’s real estate practice group, and was a global coordinator of the firm’s real estate practice group. In addition to the responsibilities listed above, after October of 2008, Respondent served as a member of the firm’s executive committee. Respondent was responsible for, among other things, billing matters affecting real estate transactions involving a major financial institution, one of the firm’s largest clients. One account relating to that client ("the unallocated account") contained funds that had been paid by the client as fees, but against which additional charges could be made for various matters, including post-closing fees. In the absence of such charges, funds in the unallocated account belonged to the law firm.

2. Between 2007 and 2012, Respondent submitted more than 800 requests that the firm reimburse him from the unallocated account for cab rides that he knew he had not taken. In support of the false requests, Respondent fabricated false taxi receipts, in amounts averaging approximately $80 each, and the firm paid Respondent approximately $69,000 based on the false submissions.

3. During the same period, Respondent also submitted, or caused to be submitted, fabricated cab receipts totaling at least $567 that were charged to other firm clients.

4. Also during the same period, Respondent submitted requests that he be reimbursed from the unallocated account for purported entertainment expenses, including restaurant gift cards (totaling at least $13,000), tickets to sporting events (totaling at least $35,000) and meals at various locations, including his country club, on Mother’s Day, Father’s Day, Thanksgiving and other dates (totaling at least $2,000), that had not been incurred for legitimate firm purposes.

5. By causing funds to be paid to himself from the unallocated account, Respondent reduced the amount of money in that account that would otherwise have been paid to the firm and, eventually, distributed to Respondent and Respondent’s partners.

Business Insider reported on his sudden departure from the firm in September 2012, following a report from AbovetheLaw.  (Mike Frisch)

Bar Discipline & Process | Permalink

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