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).
“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.
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.
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