| Description: |
Stephen T. Araki (WSBA No. 6428, admitted 1975) of Bellevue, was ordered to receive a reprimand plus two years’ probation on May 4, 2010, following approval of a stipulation by a hearing officer. This discipline was based on conduct involving trust account irregularities and failure to supervise non-lawyer employees.
On October 3, 2005, the Association received notice from Mr. Araki’s bank that a check drawn on one of Mr. Araki’s client trust accounts was presented for payment against insufficient funds. The Association’s audit of Mr. Araki’s trust account records found that during the audit period more funds were disbursed to or on behalf of some clients than were held in trust for those clients; the funds of some clients were disbursed to or on behalf of other clients; and some clients had negative account balances. In addition, Mr. Araki had a shortage of $4,000 in one of his trust accounts, and there was over $6,000 in client funds held on behalf of more than 40 different clients whose matters were inactive for at least a year.
Mr. Araki, a partner in his law firm, delegated his obligations to non-lawyer assistants, but failed to ensure their conduct was compatible with his obligations under the Rules of Professional Conduct.
Mr. Araki’s conduct violated former RPC 1.14(a), requiring all funds of clients paid to the lawyer or law firm be deposited in one or more identifiable interest-bearing trust accounts and no funds belonging to the lawyer or law firm be deposited therein; former RPC 1.14(b)(4), requiring a lawyer to promptly pay or deliver to the client as requested by the client the funds, securities, or other properties in the possession of the lawyer which the client is entitled to receive; and former RPC 5.3, requiring a lawyer to make reasonable efforts to ensure a non-lawyer’s conduct is compatible with the professional obligations of the lawyer.
Scott G. Busby represented the Bar Association. Mr. Araki represented himself. Kelby D. Fletcher was the hearing officer. |