Lawyer Misappropriation of Client Funds
Your lawyer has your settlement check. They put it in their trust account. They send you your share, minus the fees they agreed to. In Massachusetts, this simple process is the basis for attorney-client financial trust. When lawyers break it, they commit one of the most serious forms of legal malpractice.
Attorney theft and misappropriation of client funds happen more often than most people realize, as we’ve learned through decades of legal malpractice experience representing victims. Some attorneys dip into trust accounts to cover personal expenses, believing they can replace the money before anyone notices.
Others forge client signatures on settlement checks and pocket the entire amount. Still others create elaborate schemes, using new client funds to pay old clients in a collapsing cycle of theft.
These violations destroy lives, drain retirement savings, and leave accident victims without the compensation they desperately need for medical bills and lost wages, as documented in the Massachusetts BBO admonitions study showing the frequency of such misconduct.
The Law Office of Burns Jain has spent decades helping Massachusetts clients recover stolen settlement funds, even when the negligent attorney has been disbarred, lacks insurance, or has filed for bankruptcy.
We know the specific Massachusetts rules governing client trust accounts, the criminal statutes that apply to attorney theft and misappropriation of client funds, and the alternative recovery sources available when traditional insurance claims fail.
If your attorney has taken, withheld, or misused money that belongs to you, we can help you understand your rights and pursue every avenue for recovery.
What Counts as Misuse of Client Funds in Massachusetts
Misappropriation of client funds occurs when your attorney wrongfully takes or mishandles money that belongs to you. Under Massachusetts law, this is both a serious breach of professional duty and grounds for a legal malpractice lawsuit.
The most common violations we see include:
- Settlement fund theft: Your lawyer receives payment from an insurance company but keeps money that should go to you.
- Unauthorized withdrawals: Your attorney uses client trust account money for personal or business expenses without permission.
- Commingling funds: Your lawyer illegally mixes your money with their own accounts, violating state trust rules.
- Failure to disburse: After your case resolves, your attorney delays or refuses to send your portion of the recovery.
Each of these actions violates the Massachusetts Rules of Professional Conduct and can result in both civil liability and criminal charges. When attorneys steal or mishandle client funds, they often lose their law licenses.
Do I Have a Legal Malpractice Claim for Misused Funds
You likely have a valid claim if your attorney’s misconduct caused you direct financial harm. Legal malpractice cases require proof of four essential elements that our Massachusetts legal malpractice lawyers must establish, as shown in our successful legal malpractice case results.
First, we must show that an attorney-client relationship existed, creating a legal duty for your lawyer to act in your best interests. Second, we prove the attorney breached that duty by mishandling, stealing, or misusing your funds. Third, we demonstrate that the lawyer’s specific actions directly caused your financial losses. Finally, we document the measurable damages you suffered.
The strength of misuse-of-funds cases often lies in the clear paper trail they create. Bank records, settlement checks, and trust account statements provide concrete evidence of wrongdoing, making these claims more straightforward to prove than other types of legal malpractice.
If you suspect your attorney misused your funds, contact The Law Office of Burns Jain immediately. Time is critical in preserving evidence and protecting your rights.
Massachusetts Laws Protecting Client Money
Massachusetts provides strong legal protections for client funds through specific rules and criminal statutes. The Massachusetts Rules of Professional Conduct, particularly Rule 1.15, require attorneys to keep client money separate from their own funds in designated trust accounts.
These accounts, known as IOLTA (Interest on Lawyers’ Trust Account) accounts, must be maintained at approved financial institutions. Attorneys cannot commingle personal funds with client funds or use client funds for any unauthorized purpose. When lawyers violate these rules, they face both civil liability and potential criminal prosecution.
Conversion of client funds is a serious crime in Massachusetts. Attorneys who steal client money can face felony charges, substantial fines, and imprisonment. The Board of Bar Overseers also pursues disciplinary action, often resulting in severe sanctions such as suspension or disbarment.
What Evidence Proves Your Attorney Misused Funds
Building a strong case requires systematic evidence gathering that documents where your money went and how your attorney violated their duties. Our legal malpractice attorneys in Massachusetts follow a proven process to secure the proof needed for your claim.
Securing Financial Documents
We immediately work to obtain all critical records before they disappear. Your written fee agreement shows what the attorney was authorized to take from any settlement or judgment. The settlement check and release documents prove how much money your lawyer received on your behalf.
Email correspondence and letters between you and your former attorney often contain admissions or explanations about missing funds. Bank records from the attorney’s trust account can show unauthorized withdrawals or commingling of funds.
Requesting Your Complete Case File
Massachusetts law gives you the absolute right to obtain your complete case file from your former attorney. We formally demand this file, which typically contains crucial evidence about case resolution and financial transactions. Attorneys who refuse to provide the file face additional ethical violations.
Tracing and Protecting Funds
Time is essential in these cases because stolen money can quickly disappear. We take immediate action to trace funds, which may involve contacting insurance companies that issued settlement checks or banks that processed payments. In some cases, we can freeze accounts or stop payments before money is moved offshore or spent.
When Your Lawyer Doesn’t Send Your Settlement Share
This situation represents one of the most common and devastating forms of attorney misconduct we encounter. The process should be straightforward: insurance companies send settlement checks to your attorney, who deposits them in their client trust account, then promptly sends your portion after deducting agreed-upon fees.
When this doesn’t happen and your calls go unanswered, immediate action is required. Massachusetts attorneys have strict obligations to notify clients when settlement funds are received and to disburse funds promptly. Unreasonable delays often signal that the attorney has already spent or stolen the funds.
We’ve seen cases where attorneys use new client settlements to pay old client debts, creating a Ponzi-like scheme that eventually collapses. Other lawyers simply steal the money outright for personal use, gambling debts, or failing business ventures.
Don’t accept excuses or promises of future payment. Contact The Law Office of Burns Jain immediately to investigate misappropriation of client funds and take legal action to recover what you’re owed.
Recovery Options When Your Lawyer Is Disbarred or Uninsured
Many clients believe they cannot recover stolen money if their attorney lacks malpractice insurance or gets disbarred. While these circumstances create challenges, Massachusetts offers several avenues for recovery that experienced legal malpractice lawyers can pursue.
The Massachusetts Clients’ Security Board provides a safety net for victims of attorney theft by reimbursing eligible clients for documented losses.
Banks that honor checks with forged client signatures face strict liability under Massachusetts law. We’ve successfully sued banks to recover full settlement amounts when attorneys forged client endorsements. Financial institutions have a duty to verify signatures and can be held responsible when they fail to do so.
The negligent attorney’s personal assets provide another source of recovery. Even disbarred lawyers may own real estate, vehicles, or other valuable property that can be seized to satisfy judgments. We conduct thorough asset searches to identify all potential sources of recovery.
Who Else Can Be Held Accountable
Our investigations extend beyond the negligent attorney to identify all parties who may share responsibility for your losses. Law firms often have deeper pockets than individual attorneys and may be liable for their partners’ misconduct.
Partnership liability can arise when law firm partners fail to supervise trust accounts properly, ignore warning signs of financial misconduct, or allow conflicts of interest and legal malpractice to occur within their firms. Some partnerships maintain joint liability for all partners’ actions, making the entire firm responsible for one attorney’s theft.
Banks and financial institutions face potential liability when they facilitate attorney misconduct. Beyond forged signature cases, banks may be liable for allowing unauthorized access to trust accounts or for failing to report suspicious transactions as required by federal law.
Title companies in real estate transactions sometimes improperly disburse funds to attorneys without proper documentation. When these companies fail to follow standard procedures, they may be held liable for resulting client losses.
Damages You Can Recover in Misuse of Funds Cases
Our goal is the complete recovery of all losses caused by your attorney’s misconduct. Massachusetts law allows recovery of both direct financial losses and consequential damages resulting from the attorney’s breach of fiduciary duty.
The primary recovery includes the full amount of stolen or mishandled funds plus interest from the date of theft. We also seek to recover the additional legal fees you incurred to address the misconduct, including costs to hire new counsel or pursue collection efforts.
In cases involving particularly egregious conduct, Massachusetts courts may award punitive damages designed to punish the attorney and deter similar misconduct, including potential 93A double damages for unfair or deceptive practices. Emotional distress damages are also possible when the attorney’s betrayal causes significant psychological harm beyond financial losses.
Lost opportunity costs represent another category of recoverable damages. If stolen settlement funds had been invested or used to pay off high-interest debt, we calculate and pursue these economic losses as part of your claim.
Massachusetts Statute of Limitations for Legal Malpractice
Massachusetts imposes a three-year statute of limitations for legal malpractice claims, but determining when this period begins can be complex. The clock typically starts when you discover, or reasonably should have discovered, that your attorney’s actions caused you harm.
In misuse-of-funds cases, the discovery rule often applies because clients may not immediately realize their funds have been stolen. For example, if your attorney tells you the insurance company is “processing” your settlement check, you might not discover the theft until months later.
However, Massachusetts courts strictly enforce these deadlines, and waiting too long can permanently bar your claim. Evidence also deteriorates over time, making early action crucial for building a strong case.
The clock is ticking on your potential claim. Contact us today for a free case evaluation to protect your rights and begin your recovery.
The Law Office of Burns Jain’s Proven Approach to Fund Misuse Cases
Our firm has developed specialized strategies for recovering stolen client funds, drawing on extensive legal malpractice experience. We understand the tactics dishonest attorneys use to hide money and know how to counter their efforts effectively.
Comprehensive Asset Recovery Investigation
Our process begins with immediate asset searches to locate and preserve attorney funds before they disappear. We work with banks, insurance companies, and other financial institutions to trace the money.
Crucially, we utilize forensic accountants and private investigators to uncover sophisticated schemes, locate hidden assets, and document financial crimes for litigation. This comprehensive approach maximizes recovery opportunities.
Case Result: Recovery from a Forged Check
Our client, Phil, never received his car accident settlement because his attorney forged his signature on the check and deposited the funds. Although the attorney was disbarred and uninsured, demonstrating why choosing experienced malpractice lawyers matters, we did not accept defeat.
Instead, we sued the bank that honored the forged check. Under Massachusetts law, banks are strictly liable for paying checks over forged endorsements. The bank was compelled to reimburse Phil the full settlement amount, plus interest and legal fees. This tenacious approach secured full recovery where other firms might have given up.
Why Choose The Law Office of Burns Jain for Your Legal Malpractice Case
When your attorney betrays your trust, choosing the right legal malpractice lawyer becomes critical to your financial recovery. The Law Office of Burns Jain brings unique advantages to these complex cases that other firms cannot match.
We never give up on seemingly impossible cases. While other lawyers might decline cases involving uninsured or disbarred attorneys, we have the experience and resources to pursue alternative sources of recovery. Our track record includes successful recoveries even when traditional avenues appear blocked.
Our comprehensive investigation approach identifies all potentially liable parties, not just the negligent attorney. We pursue law firms, banks, insurance companies, and other parties who contributed to your losses, maximizing your chances of full recovery.
You pay nothing unless we win your case. All legal malpractice cases are handled on a contingency fee basis, meaning you owe no attorney fees unless we successfully recover money for you. This arrangement allows you to pursue justice without additional financial risk.
Contact The Law Office of Burns Jain for Your Free Consultation
If your attorney’s theft or mishandling of funds has caused you financial harm, you deserve experienced advocates who will fight for complete recovery. The legal malpractice lawyers at The Law Office of Burns Jainn have the knowledge, resources, and determination to hold negligent attorneys accountable.
We understand the betrayal and frustration you feel when an attorney you trusted steals your money. Our compassionate approach combines aggressive legal advocacy with personal attention to help you through this challenging situation.
Contact The Law Office of Burns Jain today at 617-227-7423 for a free, confidential consultation. We will review your situation, explain your legal options, and develop a strategy to recover what was stolen from you. Don’t let attorney misappropriation of client funds go unpunished. Contact us now to protect your rights.
Frequently Asked Questions
Can I Still Recover Money if My Attorney Was Disbarred for Misappropriation of Client Funds?
Yes, recovery is still possible even if your attorney is disbarred. We can file claims with the Massachusetts Clients’ Security Board, pursue the attorney’s personal assets, or sue third parties, such as banks that facilitated the theft.
What Is the Massachusetts Clients’ Security Board and How Does It Help?
The Clients’ Security Board is a fund maintained by the Massachusetts Supreme Judicial Court to reimburse victims of attorney theft. The fund can pay up to $100,000 per attorney for documented losses, providing crucial protection when attorneys lack malpractice insurance.
Can We Sue a Bank That Honored a Settlement Check With My Forged Signature?
Yes, Massachusetts law holds banks strictly liable for paying checks over forged endorsements. We have successfully recovered full settlement amounts from banks that failed to verify client signatures on attorney-deposited checks.
Should I Confront My Former Attorney About Missing Settlement Funds?
No, you should not contact your former attorney directly about missing funds. Speaking with the attorney could compromise evidence or give them time to hide assets, and any statements you make might later be used against you.
How Much Will It Cost to Hire The Law Office of Burns Jain for My Legal Malpractice Case?
There are no upfront costs to hire our firm for legal malpractice cases. We work exclusively on a contingency fee basis, meaning we only collect attorney fees if we successfully recover money for you through a settlement or trial verdict.