October 2006
Wisconsin Lawyers' Fund for Client Protection disburses
$112K-plus for lawyer theft
The Wisconsin Lawyers' Fund for Client Protection Committee approved
reimbursements totaling $112,525 to 18 victims of lawyer theft at its
first meeting of the 2006 - 07 fiscal year (July 1 - June 30). The
committee considered 33 claims on Aug. 1: 26 new claims, five deferred
from the April 4 meeting, and two for reconsideration. The
committee denied 10 claims and deferred five claims until its October
meeting.
Claims were approved for clients of Jane A. Edgar, Milwaukee (one
claim for $1,000), Thomas A. Fadner II, Pickett (one claim for $7,625),
David L. Ham, Madison (one claim for $750), Charles R. Koehn, Green Bay
(four claims totaling $11,500), Godfrey Y. Muwonge, Milwaukee (two
claims totaling $4,300), Mark Gerard Pierquet, Menasha (six claims
totaling $8,850), Gerald Proost, Franksville (one claim for $75,000),
Hazel Jean Washington, Menomonie Falls (one claim for $2,500), and
Kathryn Karlsson, Milwaukee (one claim for $1,000).
"The work this committee does speaks volumes for the
overwhelming majority of honest attorneys," says committee chair David
Reddy. "At present the committee is concentrating on getting supreme
court approval of a rule that would make it easier to acquire
restitution directly from the dishonest attorneys. Currently, there is
no established process in place to collect funds from those
attorneys, and this rule would accomplish two goals. It would place some
responsibility on attorneys with claims against them who wish to
continue to practice law, and it would increase the fund's balance,
which hopefully will help us keep the annual fee assessed on all members
at a consistent annual amount. In addition, the committee will
continue to monitor how the fund is administered and will implement any
changes that would enhance the fund."
In FY 2005 - 06, the fund paid out a total of $464,833. Of that
amount, $215,398 was for four claims filed against Gerald Proost and
$156,034 for 62 claims paid against Charles R. Koehn. Proost and Koehn
were responsible for all but $93,401 of the total fiscal year payout,
and that number does not include the $86,000 paid against these two at
the August meeting.
The Wisconsin 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, including unearned
retainer, theft from estate, misappropriation of funds, conversion of
trust account funds, and theft by investment. All claims for
reimbursement and all proceedings of the committee are subject to SCR
12.04-11. All Wisconsin-licensed attorneys, except those classified as
inactive, subsidize the fund through an annual assessment. Reimbursement
decisions are made at the discretion of the committee.
Inside the
Bar
