Saturday, September 03, 2016

Another Lawyer Gets Hit With Disbarment After Pilfering Nearly $300K In Trust Account Cash Belonging To Two Clients; Says He Was Only Following Instructions Of Firm's Managing Partner

In San Francisco, California, the Northern California Record reports:
  • Robert L. Anderson, an attorney who practiced in Santa Rosa, was disbarred May 28 for allegedly misappropriating $294,459 from two clients, arguing that he was only following instructions given to him by his firm’s managing partner.(1)

    The California Bar document explained that a three-judge review panel found clear and convincing evidence supporting the hearing judge’s recommendation of disbarment.

    The evidence provided reportedly showed that between November 2009 and February 2010, Anderson signed 30 checks and ordered a wire transfer from funds in his firm’s client trust account that were supposed to go toward paying debts allegedly incurred by a client’s late husband.

    “Instead, Anderson dispersed a total of $192,978.64 to cover law firm expenses,” the document said. “In another matter, in late 2011, Anderson misappropriated in excess of $41,000 that was supposed to be held in trust for a client while his firm negotiated a lower settlement with the plaintiffs in a civil case.”
    ***
    Because of Anderson's alleged activity, both clients ended up in even deeper financial peril, as well as caused them emotional anguish.

    “It is clear from both the standards for attorney sanctions for professional misconduct and decisional law that disbarment is the presumed sanction for intentional misappropriation of funds,” the court document said.

    Anderson was also ordered to pay all fines and reimburse both clients.
Source: Santa Rosa attorney disbarred for allegedly misappropriating clients' funds.
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(1) The California State Bar's Client Security Fund is intended to be a public service of the California legal profession. The State Bar sponsored the creation of this fund to help protect consumers of legal services by alleviating losses resulting from the dishonest conduct of attorneys. The amount the fund may reimburse for theft committed by a California lawyer depends on when the loss occurred. A maximum of $50,000 is reimbursable if the loss occurred before January 1, 2009. A maximum of $100,000 is reimbursable if the loss occurred on or after January 1, 2009.

For similar "attorney ripoff reimbursement funds" that sometimes help cover the financial mess created by the dishonest conduct of lawyers licensed in other states and Canada, see:
Maps available courtesy of The National Client Protection Organization, Inc.