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ATTORNEY disciplinary
proceeding. Attorney's license
suspended.
¶1 PER CURIAM. We review a
stipulation filed pursuant to Supreme Court
Rule (SCR) 22.12 by the Office of Lawyer
Regulation (OLR) and Attorney James T.
Runyon. In the stipulation, Attorney Runyon
admits that he engaged in misconduct
consisting primarily of a number of trust
account violations. The parties jointly
request that this court impose a 60-day
suspension of Attorney Runyon's license to
practice law in Wisconsin as discipline for
his admitted misconduct.
¶2 We approve the stipulation and
suspend Attorney Runyon's license to
practice law in this state for a period of
60 days. Because this matter was resolved
with a stipulation under SCR 22.12, we do
not require Attorney Runyon to pay the costs
of this proceeding. There is no request for
restitution.
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¶3 Attorney Runyon was admitted to the
practice of law in Wisconsin in 1978. He
practices law in the Tomahawk area. In
1984, Attorney Runyon's law license was
suspended for one year for conduct involving
moral turpitude, dishonesty, fraud, or
deceit and for providing false testimony,
violations of former SCRs 11.01, 20.04(3)
and (4), 22.28(4)(b), and 40.13. In re
Disciplinary Proceedings Against Runyon,
121 Wis. 2d 37, 357 N.W.2d 545 (1984). In
2006, Attorney Runyon received a private
reprimand for misconduct involving
dishonesty, fraud, deceit, or
misrepresentation, in violation of SCR 20:8.4
(c). Private Reprimand No. 2006-11.
¶4 On March 23, 2015, the OLR filed a
complaint alleging six counts of misconduct
relating to trust account violations that
occurred over a period of several months in
2013 and early 2014. On May 12, 2015, the
parties executed a stipulation pursuant to
SCR 22.12.
¶5 Attorney Runyon maintained an IOLTA
trust account at First Merit Bank in
Kaukauna, Wisconsin. Between September and
October 2013, a series of overdrafts
occurred. At the OLR's request, Attorney
Runyon provided the OLR with his transaction
register, client ledger, and bank
statements. Attorney Runyon's transaction
register consisted of handwritten check
stubs, which did not show a consistent,
accurate running balance, did not include
the source and client matter for all
deposits, and did not include the purpose
for all disbursements. Attorney Runyon did
not perform complete and accurate monthly
account reconciliations. For example,
Attorney Runyon's handwritten check stubs
indicate that the balance in his trust
account as of June 27, 2013, should have
been $134,924.09. However, bank records
show that Attorney Runyon's actual trust
account balance on June 27, 2013, was only
$5,944.86.
¶6 Because the OLR was unable to
determine the cause of the overdrafts based
solely upon records provided by Attorney
Runyon, the OLR obtained Attorney Runyon's
bank statements, checks, and deposit records
for 2013 directly from the bank and
conducted an audit.
¶7 The OLR's reconstructed records
indicate that Attorney Runyon's trust
account first became overdrawn (on the
books, as opposed to the bank balance) by a
total of $16,651.33 at the end of the day on
September 16, 2013. On September 19, 2013,
the largest overdraft occurred, in the
amount of $24,151.33.
¶8 On November 4, 2013, in the wake of
these overdrafts, Attorney Runyon opened a
new trust account at River Valley Bank and
made an initial deposit of $20,000.
¶9 On November 12 and 14, 2013, River
Valley Bank charged Attorney Runyon
miscellaneous fees associated with opening
the new account. Attorney Runyon did not
account for such fees and did not keep any
firm funds designated to cover account fees
and charges in the trust account.
¶10 On December 2, 2013, Attorney Runyon
closed the First Merit Bank trust account,
withdrew its remaining balance of $8,072.60,
and deposited it into his River Valley Bank
trust account. The $8,072.62 belonged to
Attorney Runyon either as earned fees or as
personal funds.
¶11 On December 31, 2013, there was an
overdraft in the amount of $1,518.75 on
Attorney Runyon's River Valley Bank trust
account. A trust account check in the
amount of $2,500 was presented and returned
unpaid.
¶12 In response to the December 31, 2013
overdraft, Attorney Runyon provided copies
of various records requested by the OLR,
including his transaction register, bank
statements, images of the canceled checks,
deposit slips, and copies of the client
ledgers at issue. A number of the canceled
checks did not include the client matter and
purpose of the check on the memo line. In
addition, a number of the original deposit
slips that were submitted to the bank by
Attorney Runyon did not include client
information. Attorney Runyon stipulated to
his commission of the misconduct charged as
follows:
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¶13 By failing to hold in trust and
account for at least $19,053.61 and as much
as $86,850.68 in client and third-party
funds between June 27, 2013, and October 1,
2013, Attorney Runyon violated SCR 20:1.15(b)
(1) (Count One).
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¶14 By failing to hold in trust and
account for at least $19,053.61 and as much
as $86,850.68 in client and third-party
funds between June 27, 2013, and October 1,
2013, and, on numerous occasions, by
converting funds from client matters in
order to cover checks he issued in other
client matters for which there was not
sufficient funds on deposit in the trust
account, Attorney Runyon violated SCR 20:8.4
(c) (Count Two).
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¶15 By depositing eight checks into his
trust account totaling $18,550 that were
drawn upon his business account, Attorney
Runyon violated SCR 20:1.15(b)(3) (Count
Three).
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¶16 By failing to maintain a transaction
register that accurately reflected the
activity in his trust account and that
included the balance after each transaction,
the source and client matter for all
deposits, and the purpose for all
disbursements, Attorney Runyon violated SCR
20:1.15(f)(l)a. Further, by failing to
maintain client ledgers that accurately
reflected the activity in his trust account,
and by making disbursements of funds from
his trust account that created final total
negative balances of $53,772.73 in 14 client
ledgers as of October 1, 2013, and by
allowing five client ledgers to become
overdrawn temporarily in July and August
2013 by a total amount of $6,759.36,
Attorney Runyon violated SCR 20:1.15(f)(l)b.
(Count Four).
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¶17 By depositing $8,072.60 of personal
funds into his River Valley Bank trust
account on December 2, 2013, Attorney Runyon
violated SCR 20:1.15(b)(3) (Count Five).
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¶18 By failing to identify the client
matter on his trust account deposit slips
submitted to the bank, Attorney Runyon
violated 20:1.15(f)(l)d. Further, by issuing
checks from his River Valley Bank trust
account without including the client matter
and purpose on the memo lines of such
checks, Attorney Runyon violated 20:1.15(f)
(l)e.l. Lastly, by failing to obtain, and
maintain with his trust account records,
imaged checks or copies of the canceled
checks issued from his trust account,
Attorney Runyon violated 20:1.15(f)(l)e.2.
(Count Six).
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¶19 The stipulation clearly states that
it was not the result of plea bargaining.
Attorney Runyon states that he fully
understands the allegations of misconduct
against him and his right to contest those
allegations. He nonetheless admits his
misconduct and assents to the discipline
sought by the OLR. He further states that
he fully understands the ramifications that
will follow if this court accepts the
stipulation and imposes the requested level
of discipline. Attorney Runyon also
represents that he understands his right to
consult with counsel in this matter.
Finally, he asserts that his entry into the
stipulation is made knowingly and
voluntarily.
¶20 The only real issue here is whether
the stipulated level of discipline (a 60-day
suspension) is an appropriate level of
discipline. Precedent in the area of
failing to hold funds in trust is clustered
on two extremes. The most egregious trust
account misconduct, misappropriation, can
merit revocation or a lengthy suspension.
Other cases, however, warrant a much less
severe level of discipline, such as a
reprimand or short suspension. Attorney
Runyon's conduct lies closer to the lower
end of the two extremes.
¶21 Although it was improper for
Attorney Runyon to deposit personal funds
into his trust account, his motive was to
make the trust account whole.
¶22 The OLR states that it considered
several cases, as well as aggravating
factors—including Attorney Runyon's
disciplinary history—and mitigating factors,
when analyzing what level of discipline it
would seek in this matter. See,
e.g., In re Disciplinary Proceeding
Against Grogan, 2011 WI 7, 331 Wis. 2d
341, 795 N.W.2d 745 (imposing 60-day
suspension on attorney with previous
reprimand who engaged in various trust
account violations, including commingling
funds in the trust account and paying for
office rent, groceries, and prepaid cash
cards from the trust account); In re
Disciplinary Proceedings Against Molinaro,
2009 WI 61, 318 Wis. 2d 375, 769 N.W.2d 458
(imposing 60-day suspension for trust
account anomalies, including inappropriate
transfers of funds between personal, trust,
and business accounts).
¶23 The OLR deems suspension warranted
in this case because Attorney Runyon was, at
the least, extremely reckless with managing
his trust account. In a four-month period,
Attorney Runyon's trust account was
repeatedly out of balance. Attorney Runyon
knew or should have known that he did not
have sufficient funds in his trust account
to cover many of the disbursements he made
to clients. Indeed, Attorney Runyon made
$18,550 in deposits of personal funds to the
account between June 29 and September 19,
2013, prior to the bank issuing its first
overdraft notice on September 20, 2013.
After the overdrafts occurred, Attorney
Runyon then deposited additional personal
funds to make the account whole. So, while
no clients were ultimately harmed, that is
due only to the fact that Attorney Runyon
had sufficient personal funds available to
make up for his overextension.
¶24 On review of the entire record, we
accept the stipulation and impose the
jointly requested sanction of a 60-day
suspension of Attorney Runyon's license to
practice law in this state. No restitution
was sought so we do not impose restitution.
Because this matter was resolved with the
filing of a stipulation under SCR 22.12 and
without the appointment of a referee, the
OLR does not seek costs and we will not
require Attorney Runyon to pay any costs.
¶25 IT IS ORDERED that the license of
James T. Runyon to practice law in Wisconsin
is suspended for a period of 60 days,
effective November 7, 2015.
¶26 IT IS FURTHER ORDERED that James T.
Runyon shall comply with the provisions of
SCR 22.26 concerning the duties of a person
whose license to practice law in Wisconsin
has been suspended.
¶27 IT IS FURTHER ORDERED that
compliance with all conditions of this order
is required for reinstatement. See SCR
22.28(2).
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¶28 SHIRLEY S. ABRAHAMSON,
J. (concurring). I write to express
concern that the per curiam does not
sufficiently justify the 60-day suspension
the court approves in this stipulated
matter. Attorney Runyon and the OLR
stipulated to the violation of the trust
accounting rules and to a 60-day suspension.-
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¶29 Attorney Runyon has had two prior
brushes with OLR. In 1988, his license was
suspended for one year. In 2006, he
received a private reprimand.
¶30 In contrast, Attorney Thomas
Mulligan receives a 9 month suspension for
violating trust accounting rules. OLR v.
Mulligan, 2015 WI 96, _ Wis. 2d _, _
N.W.2d _. Attorney Mulligan contested the
OLR complaint and proposed discipline.
Attorney Mulligan has had three prior
brushes with OLR. In 1997, Attorney
Mulligan received a private reprimand. In
2005, Mulligan received a private
reprimand. In 2009, he received a public
reprimand.
¶31 I have difficulty reconciling the
significantly different levels of discipline
imposed in these two trust accounting
violation cases.
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