OLR Compendium > Public Reprimand of Douglas E. Batt

Public Reprimand of Douglas E. Batt

2007-4

Attorney Douglas E. Batt, 48, currently practices in Milwaukee, Wisconsin. This reprimand is based on the following conduct.

On December 8, 2005, there was a $129.84 overdraft on Atty. Batt’s client trust account when Atty. Batt made a cash withdrawal of $150.00. Atty. Batt indicated that the overdraft stemmed from two mistakes: a recording error relating to an April 2005 deposit, which overstated the amount deposited by $100.00; and a failure to record the return of a $410.00 deposit item in September 2005.

Following the overdraft, OLR audited Atty. Batt’s trust account for the period between April 30, 2005 and March 3, 2006. During that time, Atty. Batt maintained neither a business account nor a personal account and routinely deposited earned fees and rent income into his trust account. Between August 2005 and March 2006, he deposited 23 State Public Defender checks, totaling $26,128.01, into the trust account. In addition, between June and December of 2005, Atty. Batt deposited 12 rent checks, totaling $5,405.00, into his trust account. He also deposited a $1,500.00 loan from a relative to the trust account.

OLR’s audit also revealed numerous cash transactions in the trust account. Between June 2005 and March 2006, Atty. Batt made 56 cash withdrawals from his trust account, totaling $18,167.00, and took 16 cash withdrawals from deposits to the account, totaling $3,154.44. In addition, between May 2005 and March 2006, Atty. Batt disbursed 38 checks, totaling $29,943.00, which were payable to “Cash.” None of the cash disbursements or withdrawals involved funds belonging to clients or third parties.

The audit further revealed that, between June and November of 2005, Atty. Batt authorized one of his creditors to make three automated withdrawals from the trust account, totaling $666.61.

Finally, the audit disclosed a number of trust account record keeping deficiencies. Atty. Batt failed to identify the source of any of the deposits to the account in his transaction register, including the deposits that related to client matters. With respect to the transactions relating to two client matters, he failed to identify the client associated with any of the deposits or disbursements. Finally, Atty. Batt failed to regularly reconcile his trust account.

By depositing a $1,500.00 personal loan to his trust account and by depositing and holding $26,128.01 in earned fees and $5,405.00 in rental income in his trust account, Atty. Batt deposited and retained funds belonging to himself in his client trust account, in violation of SCR 20:1.15 (b)(3).

By failing to maintain a business account, despite the fact that he occasionally receives funds that must be held in trust, Atty. Batt failed to maintain at least one demand account, other than the trust account, for funds received and disbursed other than in the lawyer's trust capacity, in violation of SCR 20:1.15(e)(8).

By making 56 cash withdrawals from his trust account, totaling $18,167.00, and 16 withdrawals from deposits to his trust account, totaling $3,154.44; and by disbursing 38 checks, totaling $29,943.00, which were payable to “Cash,” Atty. Batt violated each element of SCR 20:1.15(e)(4)a.

By allowing one of his business creditors to electronically withdraw funds from his trust account on three separate occasions, Atty. Batt authorized a 3rd party to electronically withdraw funds from a trust account, in violation of SCR 20:1.15(e)(4)d.

By failing to record the sources of deposits in his transaction register, and the identity of the clients for whom funds were deposited or disbursed, Atty. Batt failed to comply with the recordkeeping requirements for a transaction register, in violation of SCR 20:1.15(f)(1)a.1. and SCR 20:1.15(f)(1)a.4.

By failing to reconcile his trust account, Atty. Batt failed to prepare and retain a printed reconciliation report on a regular and periodic basis not less frequently than every 30 days, in violation of SCR 20:1.15 (f)(1)g.

In accordance with SCR 22.09(3), Attorney Douglas E. Batt is hereby publicly reprimanded. In addition, Attorney Batt is required to attend an OLR-sponsored Trust Account Management Seminar within one year of the date of this reprimand, and successfully complete a test at the conclusion of that seminar.