Professional Misconduct (Essay Sample)

Name:
Tutor:
Course:
Date:
Professional Misconduct
In a recent publication by the U.S attorney’s office, District of Connecticut, details of professional misconduct by a Connecticut-based lawyer are revealed. The lawyer, William McCullough, is said to have defrauded some of his clients hundreds of thousands of dollars when he operated a law firm in Stamford. Part of his work included representing and helping clients with their real estate transactions. As an attorney, McCullough could receive funds from clients or on their behalf. Such funds are supposed to be deposited in an Interest on Lawyer’s Trust Account (IOLTA) and utilized according to the instructions of the clients. However, an audit by a regulatory body revealed that the attorney had not maintained all the required documents. The audit also established that some of the clients’ money was diverted to personal use. McCullough also manipulated the IOLTA bank balances in an effort to cover his fraudulent activities. It is estimated that the attorney defrauded his clients over $700,000 through the scheme. It is reported that the attorney has since resigning from the Connecticut bar and is awaiting sentencing in a court of law (Department of Justice 1).
McCullough’s actions violated several CFP Board Code of Ethics and Standards of Conduct. To begin with, he violated the standard of Fiduciary duty- 1a (i) - which dictates that the interests of clients should be put above of those of the professionals or the firms they represent. For instance, when the attorney used clients’ money for personal use he was putting his interests above those of the clients, which is wrong. The attorney also failed to obey article 1b and 1c. 1b says that professionals owe their clients a duty of care which entails acting with care, skill, prudence, and diligence based on the client’s goals. 1c obligates professionals to follow client instructions including all objectives, policies, restrictions and all other terms that were agreed upon. The lawyer violated these two articles since the clients expected the lawyer to put the money in the IOLTA account and only use it according to the instructions issued but this is not what transpired.
The attorney also failed in the standard of integrity, particularly in articles 2b (i-iii). He violated sub-article (i) when he employed a scheme to defraud his clients. Sub-article ii was violated when the attorney provided false and inaccurate closing statement to a client. Sub-article (iii) was violated when the attorney used some of the money to cover funds owed to other individuals and for personal use. Since the actions of the attorney were illegal and immoral it follows that he also violated standard 8. 8(a) requires professionals to follow all rules