New Jersey Attorney Trust and Business Accounting and Avoiding the Risks of Disbarment and Other Discipline for Co-mingling and Misappropriation of Entrusted Funds

This course will discuss the New Jersey Supreme Court's Trust and Business Account financial record keeping requirements for attorneys in private practice. It will also explore the difference between Compliance and Demand Audits and the standards applied by the Office of Attorney Ethics in determining whether there is a violation and the Disciplinary process. 

Careful attention will be given to the concepts of Knowing and Negligent Misappropriation, the differences in the range of Discipline, the Wilson Rule and mandatory Disbarment.

Finally, New Jersey's alteration in its prior approach to permanent Disbarment will be examined along with the Wade decision and new Rule 1:20-21A concerning readmission following disbarment.

Learning Objectives:

1. Examine the financial record keeping requirements for attorney Trust and Business Accounts and the difference between Compliance and Demand Audits by the Office of Attorney Ethics
2. Review the significance of the three-way reconciliation requirements and the importance of providing the auditor with sufficient records to track all funds
3. Identify the distinction between Negligent and Knowing Misappropriation, the Wade Rule and the consequences of Discipline
4. Discuss the New Jersey Supreme Court's approach to knowing misappropriation and the recent changes to the permanency of disbarment