Sign In
  • April 04, 2008

    Inside the Bar May 2008: Lawyers’ Fund for Client Protection disburses $200K-plus to victims of lawyer theft; sets FY 09 assessment at $0

    During Fiscal Year 08, July 1, 2007 - June 30, 2008, the Wisconsin Lawyers’ Fund for Client Protection Committee approved $202,830 in reimbursements to 29 victims of lawyer theft involving 17 attorneys. The committee has approved a $0 assessment for FY 09, per SCR 12.07(3).

    Inside the     BarInside the Bar
    May 2008

    Lawyers’ Fund for Client Protection disburses $200K-plus to victims of lawyer theft; sets FY 09 assessment at $0

    During Fiscal Year 08, July 1, 2007 - June 30, 2008, the Wisconsin Lawyers’ Fund for Client Protection Committee approved $202,830 in reimbursements to 29 victims of lawyer theft involving 17 attorneys. The committee has approved a $0 assessment for FY 09, per SCR 12.07(3).

    “The last two fiscal years have had a lower number of claims and accordingly, a lower amount of awards,” says outgoing committee chair David Reddy, Elkhorn. “Due to the high balance that the fund will have at the end of this fiscal year and a lack of knowledge of any major claims on the horizon, the committee set this year’s assessment at $0 for the first time since 2004. I think it is important to reiterate how much good will is generated for our profession as a result of the awards made by the committee.”

    President             Tom Basting (center) thanked outgoing chair Dave Reddy (left) and member               Bill Neill for their many years of service on the Client Protection Fund               Committee. President Tom Basting (center) thanked outgoing chair Dave Reddy (left) and member Bill Neill for their many years of service on the Client Protection Fund Committee.

    The committee determines the annual assessment amount by dividing the claims paid in the current fiscal year by the number of attorneys to be assessed and considers the anticipated fund balance at the end of the current fiscal year and claims anticipated to be filed in the upcoming fiscal year. Wisconsin-licensed attorneys, except those classified as inactive, are assessed. The Wisconsin Supreme Court mandates a fund balance of $250,000 as of May 1 each year.

    Members step down. At the final FY 08 meeting, State Bar President Tom Basting thanked Reddy and nonlawyer committee member William Neill, Ripon, for their combined 17 years of service. “Under Dave’s watch this committee has done great things and has served as a beacon for what the State Bar does for people who are harmed by the misconduct of some lawyers.”

    “In the last nine years there have been 352 claims involving only 78 lawyers, and the committee has approved reimbursement for nearly $2.1 million,” said Basting. “That’s a statistic that isn’t publicized much in Wisconsin. When people condemn lawyers for things they are angry about, they don’t realize that this committee is funded by the legal profession.

    “Part of Dave and Bill’s legacy to this committee, to the public, and to the profession is their hard work on a petition, granted by the supreme court in May 2007, which makes it easier to acquire restitution to the fund directly from dishonest attorneys," said Basting. By allowing a restitution order to be reduced to a judgment it is easier to collect from attorneys against whom awards have been made. Bill’s participation in the successes of the revised and newly created SCR and his participation at  national ABA Client Protection Fund Forums have been of great value to this committee.”

    Claims paid. In FY 08 the committee denied five claims and at its April meeting it deferred two claims totaling $6,213. In FY 08 claims were approved for the clients of: Joan Marie Boyd, Shawano (one claim for $2,800); Richard A. Engelbrecht, Green Bay (two claims for $1,150); Thomas A. Fadner II, Pickett (one claim for $1,000); James M. Gedlen, Hales Corners, (two claims for $5,250); Scott E. Hansen, Appleton (two claims for $3,500); Michael C. Hurt, Menomonee Falls (two claims for $21,600); Jevon Jones Jaconi, Luxemburg (one claim for $7,500); Leroy Jones, Milwaukee, (one claim for $1,000); Charles R. Koehn, Green Bay (one claim for $3,500); Jay Michael Langkamp, Corona, NY (two claims for $1,400); the late Arthur J. Morrissey, Wauwatosa (one claim for $18,000); Godfrey Y. Muwonge, Milwaukee (five claims totaling $15,400); Mark Gerard Pierquet, Green Bay (one claim for $250); Gerald Proost, Franksville (one claim for $100,000); John Sheehan, Beloit (one claim for $500); Robert J. Smead, Menasha (four claims for $8,250); and the late Willis B. Swartwout III, Hartland (one claim for $11,730).

    The supreme court established the fund in 1981 to reimburse people who lost money through dishonest acts of Wisconsin attorneys. Claims include unearned retainer, theft from estate, misappropriation of funds, conversion of trust account funds, and theft by investment.

    For more information, visit Client Protection Fund, or contact Kris Wenzel, (800) 444-9404, ext. 6185, or (608) 250-6185.


Join the conversation! Log in to comment.
System.NullReferenceException: Object reference not set to an instance of an object. at News.NewsTOCNavigation.NewsTOCNavigationUserControl.Page_Load(Object sender, EventArgs e)

News & Pubs Search

-
Format: MM/DD/YYYY