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.
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