Dec. 2, 2009 – The Wisconsin Lawyers’ Fund for Client Protection Committee approved $172,900 in reimbursements to seven victims of lawyer theft at its November meeting. The committee considered 23 claims against 10 attorneys. Ten claims were denied; and six claims totaling $366,000 were deferred.
“Client protection funds around the country are experiencing increases in the numbers and sizes of claims,” says committee chair Deb Smith. “As lawyers are under increasing economic pressure, some experience problems with substance abuse, depression, or generally become overwhelmed. Unfortunately, there are those who resort to stealing from clients and trust accounts. I think that explains, in part, what we’re seeing in the numbers and amounts of claims in Wisconsin. While we can feel some empathy for the plight of those affected lawyers, it is important that we call them on their dishonest conduct and do what we can to make their victims whole. We are a self-policing profession, and as such, we owe a special duty to clients and the public to maintain trust and confidence in lawyers. One important way we do this is by making amends for the bad deeds of a few.”
Disbursements. Claims recently were approved for clients of:
Joan Marie Boyd, Shawano (one claim for unearned advanced fees for $8,100)
Peter T. Elliott, Oconomowoc (one claim for theft from an estate for $150,000)
Christopher A Mutschler, Fond du Lac (one claim for unearned advanced fees for $4,000)
Godfrey Y. Muwonge, Milwaukee (four claims for unearned advanced fees totaling $10,800)
About the fund. The supreme court established the fund, formerly named the Clients’ Security 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. Claims for reimbursement and all proceedings of the committee are subject to SCR 12.04-12. Reimbursement decisions are made at the discretion of the committee, which meets three times a year. The next meeting is scheduled for March 30, 2010. Since 1981, the fund has paid close to $4.5 million in 633 claims against 143 lawyers.
For more information about the fund, e-mail Kris Wenzel or call (800) 444-9404, ext. 6185, or (608) 250-6185.
