The bar brought a complaint against us for stealing clients retainers. Whenever there’s an issue we give full refunds. I’m very confused how this got filed in the Supreme Court

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Maybe don’t post about it here?

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You might want to retain an ethics counsel.

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If you deposited the retainers into a capital or operating account instead of an IOLTA prior to the money being earned through fees, you misappropriated client funds. Giving a refund may have nothing to do with it. Also, if you’re only giving refunds when there is an issue, you could easily be stealing unearned client funds. Depends on the situation

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Some state bars are very hot for these types of files, due to high profile failures on their part (e.g., Tom Girardi in CA). They want to regain some lost credibility. The common wisdom is do not handle the matter yourselves. Get strong defense counsel and let them deal with it.

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The operative word is “stealing.”

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Someone has to have complained about you. Or, your client casually (or perhaps frustratingly) mentioned it to a lawyer who suddenly becomes obligated to report you regardless of whether the client wants to complain or not. I believe that is the rule in all states— you have the duty to snitch your fellow lawyers if you believe that they are violating specific ethics rules of your bar. If you refunded clients before, you were likely in violation of the ethics rules of all 50 states and DC. You should never have had client funds anywhere but in a trust account that complies with the specific rules of your bar. Even if you have earned, funds move out of client trusts after their consent (prior consent could be in the client engagement letter).

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“ dishonestly appropriating property belonging to another with the intention of permanently depriving them of it” #theft. Backed up by only returning it once the company has been caught.

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