| Case Digest |
Respondent reached a settlement for his clients in a property damage case involving their business. In November 2002, Respondent’s clients signed a Release of all claims for the sum of $18,000. Even though Respondent’s clients signed a Release and Authorization, Respondent failed to make distribution of the $12,500 due and owing to them.
Respondent paid no money to his clients until January 2003, when he was notified by an attorney hired by his former clients.
Respondent then used non-fiduciary funds to satisfy his fiduciary obligation to his clients leaving his escrow account out-of-trust on several occasions. Respondent also paid personal loans from his escrow account.
Respondent then started a course of depositing settlement money in the escrow account for one client, and then paying that settlement money to a different client. This activity left Respondent’s escrow account out-of-trust on many occasions.
There is no evidence of any conversion.
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