Professional Discipline
The Board of Attorneys Professional Responsibility, an arm of the
Wisconsin Supreme Court, assists the court in discharging its exclusive
constitutional responsibility to supervise the practice of law in this
state and to protect the public from acts of professional misconduct by
attorneys licensed to practice in Wisconsin. The board is composed of
eight lawyers and four nonlawyer members, and its offices are located at
Room 315, 110 E. Main St., Madison, WI 53703, and Room 102, 611 N.
Broadway, Milwaukee, WI 53202.
Disciplinary proceeding against Patrick B. Sheehan
On Feb. 12, 1999, the Wisconsin Supreme Court revoked the law license
of Patrick B. Sheehan, 57, who formerly practiced in Beloit. The
revocation stemmed from findings of misconduct in three matters.
In the first matter, Sheehan represented both the buyer and seller in
the potential sale of a business, despite the fact that Sheehan was
aware a license essential to full operation of the business was
nontransferable. Sheehan presented a purported offer to purchase to the
seller without disclosing that the offer was invalid and bore a forged
signature. Sheehan induced the client to pay him an $8,000 commission on
the purportedly valid contract. Sheehan presented the offer, all the
time knowing that the contract was invalid and that no sale would occur.
Sheehan deposited the $8,000 into his client trust account and then
withdrew portions of the money to pay other clients, office personnel,
and himself. The court found that Sheehan represented multiple clients
having differing interests in the same matter, contrary to SCR
20:1.7(b); commingled his own funds with trust account funds,
contrary to SCR
20:1.15(a); failed to keep the requisite records of his trust
account, contrary to SCR
20:1.15(e); and engaged in conduct involving dishonesty, fraud,
deceit, or misrepresentation, contrary to SCR
20:8.4(c).
In the second matter, Sheehan was retained by a couple to dissolve
their corporation and prepare their tax returns. Sheehan requested that
the couple give him $15,400 to cover estimated federal and state taxes
relating to their personal returns, fees for an accountant for preparing
federal and state corporate returns, and fees and costs for Sheehan in
preparing the couple's returns and in connection with the dissolution of
the corporation. Upon receipt of the $15,400 check, Sheehan wrote out
seven checks on one of his client trust accounts totaling $15,400,
including checks to the IRS, Wisconsin Department of Revenue, the
accountant, and two to himself. Five of the seven checks were placed in
the clients' file, but were never sent to the payees. The following day,
Sheehan deposited the client's $15,400 check along with the two checks
made out to himself into another one of Sheehan's client trust accounts
which Sheehan in turn used to make disbursements to other clients and
himself. When the taxes were due, Sheehan advised the couple not to
worry about their corporate and personal tax returns, and that he had
filed extensions. The couple later received notices from both the
Wisconsin Department of Revenue and the IRS that adjustments had to be
made in their returns and that either no estimated tax had been paid or
there was an underpayment. The couple also learned that the corporate
dissolution papers had not been filed.
The court determined that Sheehan failed to competently represent his
clients, contrary to SCR
20:1.1; failed to act with reasonable diligence and promptness in
representing a client, contrary to SCR
20:1.3; failed to hold the clients' property in trust, contrary to
SCR
20:1.15(a); failed to keep adequate trust account records, contrary
to SCR 1.15(e); and engaged in conduct involving dishonesty, fraud,
deceit, or misrepresentation, contrary to SCR
20:8.4(c).
In the third matter, Sheehan represented a man in dealing with
various altercations with local police. The man had cerebral palsy and
suffered some mental and physical difficulties. In 1995 the man was
struck by a car and received serious injuries. The man asked Sheehan to
represent him in a personal injury matter. Sheehan settled the man's
personal injury matter for $85,000, which was deposited into one of
Sheehan's client trust accounts. Sheehan then disbursed a portion of the
man's settlement monies to other clients and himself and made
disbursements on behalf of the man from another client trust account.
The court found that Sheehan failed to hold the client's property in
trust and commingled his own funds with client funds, contrary to SCR
20:1.15(a); failed to keep requisite trust account records, contrary
to SCR
20:1.15(e); represented a client on a contingency fee basis without
a written contingent fee agreement, contrary to SCR
20:1.5(c); and engaged in conduct involving dishonesty, fraud,
deceit, and misrepresentation, contrary to SCR
20:8.4(c).
In addition to license revocation, Sheehan was ordered to pay costs
of the proceeding. The issue of restitution to his clients was left for
determination at such time as Sheehan seeks license reinstatement.
Wisconsin Lawyer