P:\CLEPUB\Books\Disciplinary Board Reporter ... - Oregon State Bar

Cite as In re Andersen, 19 DB Rptr 227 (2005)
all deposits, withdrawals, deliveries, and disbursements of client funds in his trust
account.
7.
On or about January 22, 2004, the Accused issued a check from the trust
account when there were insufficient funds in the account, although the Accused
maintains he believed there were sufficient funds in the account. The bank honored
the check and after it did so, the account had a negative balance.
8.
The Accused asserts that he used his trust account for personal business
because, due to a prior theft involving his accounts, he believed his business and
personal bank accounts were vulnerable to fraudulent activities. The Accused admits
that running funds, personal and client, through his trust account and paying
obligations, personal and client, from his trust account was not the proper method to
protect himself from the potential for theft. This is particularly true when the
Accused failed to maintain sufficient records to account for the nature of funds
deposited in trust.
9
The Bar does not contend in this proceeding that the Accused misappropriated
or converted to his own use client funds.
10.
The Accused admits that, by engaging in the conduct described in this
stipulation, he improperly commingled his personal funds in his trust account and
failed to maintain complete records of client funds and property in his possession and
render appropriate accounts regarding them in violation of DR 9-101(A) and DR
9-101(C)(3) of the Code of Professional Responsibility.
Sanction
11.
The Accused and the Bar agree that in fashioning an appropriate sanction in
this case, the Disciplinary Board should consider the ABA Standards for Imposing
Lawyer Sanctions (hereinafter “Standards”). The Standards require that the Accused’s
conduct be analyzed by considering the following factors: (1) the ethical duty
violated; (2) the lawyer’s mental state; (3) the actual or potential injury; and (4) the
existence of aggravating and mitigating circumstances.
A. Duty Violated. The Accused violated his duty to his clients to refrain
from commingling his personal and business funds with those of his clients.
Standards, § 4.1. The most important ethical duties are those obligations thath a
lawyer owes to clients. Standards, at 5.
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