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.