Sept. 2, 2009 – The Wisconsin Lawyers’ Fund for Client Protection Committee approved $294,147.14 in reimbursements to 13 victims of lawyer theft at its August meeting. The committee considered 32 claims – five of which were deferred from FY 09. Nine claims were denied; and 10 were deferred.  The dollar amount being sought for the deferred claims totals $347,525. The committee also increased the reimbursable amount for each victim from $75,000 to $150,000.

The fund has updated its policy regarding the maximum award over the years. Initially the maximum award was $25,000. From January 1990 through June 1995 the maximum was $35,000. From July 1995 through June 1996, it was raised to $45,000. The previous maximum of $75,000 was effective July 1, 1996, and has not been raised since. The committee also passed the new maximum with a requirement that exceeding that maximum would take a unanimous vote of the committee members present.

“The new maximum rate affects few claims,” says committee chair Deb Smith. “The Client Protection Fund Committee considered 27 claims at its August meeting. Three of those claims were for more than $75,000 and two of those for more than $150,000. However, these larger claims are often those that have had the greatest impact on the victim of the dishonest conduct of a lawyer. For example, there was a claim from a church in a central city neighborhood of Milwaukee that had provided ministry and services to the community since at least 1900. The church needed to sell a property so it could continue in existence and maintain its ministry. The attorney they hired to sell the property stole more than $200,000 realized from the sale. Without the award of $150,000, the church would have had to shut its doors, including its food pantry, clothing pantry, and soup kitchen.

“The fund has experienced an even greater number and total amount of claims than the committee had anticipated,” says Smith. “It is likely that the committee will not be able to pay all claim awards this fiscal year. The rules do provide for deferral of payment. Hopefully, the level of claims will not continue as it has over the last six months.

“The committee is committed to paying claimants with substantiated claims as promptly as we can. The committee is also committed to finding new ways to seek restitution from lawyers against whom claims are paid. A recent change in the Wisconsin Supreme Court rules should make that a little easier. The fund would be grateful for any lawyers wishing to volunteer to help the fund recover money from lawyers against whom claims have been paid,” she said.

Disbursements. Claims recently were approved for clients of:

• Timothy T. Blank, Green Bay (one claim for unearned advanced fees for $2,000)

• Peter T. Elliott, Oconomowoc (three claims for theft by investment totaling $231,692.14)

• Scott H. Fisher, Menasha (one claim for unearned advanced fees for ($500)

• William J. Gilbert, Hudson (one claim for theft by investment for $14,100)

• David A. Goluba, Ripon (one claim for trust account conversion for $30,000)

• Mark R. Kramer, Delafield (four claims for trust account conversion totaling $10,805 and one claim for misappropriation of funds for $4,000)

• Mark A. Phillips, Elm Grove (one claim for unearned advanced fees for ($1,050)

About the fund. The 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. Claims include unearned retainer, theft from estate, misappropriation of funds, conversion of trust account funds, and theft by investment. Claims for reimbursement and all proceedings of the committee are subject to SCR 12.04-12. Reimbursement decisions are made at the discretion of the committee, which meets three times a year. The next meeting is scheduled for Nov. 17.

For more information about the fund, e-mail Kris Wenzel or call (800) 444-9404, ext. 6185, or (608) 250-6185.