Admonition No. 25-04

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This matter came to bar counsel’s attention as the result of a dishonored check notice after the respondent disbursed funds in a real estate closing without ensuring that the corresponding deposit had cleared.

On June 26, 2023, the respondent deposited a check from his client who was the buyer in a real estate transaction. On June 28, 2023, the respondent disbursed the funds to two sellers. The buyer was a real estate investment firm that had recently received the proceeds of its own refinancing to complete the sale. However, the firm’s refinancing had not been timely funded and thus the deposit in the respondent’s IOLTA account had initially failed. The respondent mistakenly believed the funds had cleared when he distributed the checks to the sellers.

The respondent also failed to maintain a compliant bank fees ledger listing all of the firm’s funds that were held in the account for fees, which resulted in noncompliant reconciliations. The respondent also had been holding funds in excess of the amount reasonably necessary for bank fees, but has since removed those funds from the account.

The respondent’s conduct in authorizing disbursement of funds from his IOLTA account before funds were available for withdrawal violated Mass. R. Prof. C. 1.15(f)(1)(C). The respondent’s failure to maintain a compliant bank fees ledger violated Mass. R. Prof. C. 1.15(f)(1)(D). The respondent’s failure to withdraw funds belonging to him at the earliest reasonable time violated Mass. R. Prof. C. 1.15(b)(2)(ii).

The respondent has been a member of the Massachusetts bar since 1991 and has received no prior discipline. He accordingly received an admonition for his misconduct.