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Ruth Ann Elizabeth Westbrook, (WSBA No. 27789, admitted 1998), of Everett, was disbarred, effective June 19, 2012, by order of the Washington State Supreme Court. This discipline was based on conduct involving the crime of theft, failure to safeguard client property, and dishonest conduct.
At all relevant times, Ms. Westbrook was an equal shareholder in the Firm and was in charge of managing the Firm’s finances; her duties included managing the Firm’s bank accounts, handling the Firm’s cash, paying employee salaries, and paying the Firm’s financial obligations, including taxes. Ms. Westbrook usually controlled the Firm’s check books. On May 17, 2006, the Firm was hired to represent Client A in a marital dissolution. On or about October 16, 2006, the Firm received a check in the amount of $141,679.03 representing the proceeds from the sale of Client A’s family residence. The Partner handling Client A’s case directed Ms. Westbrook to deposit the proceeds in the Firm’s IOLTA account pending the court’s determination on how the proceeds would be distributed. At the time the Firm received the proceeds, Client A did not owe the Firm any attorney fees and had a credit balance, and Ms. Westbrook had no reason to believe that any of the proceeds belonged to the Firm.
On October 16, 2006, Ms. Westbrook deposited the $141,679.03 into the Firm’s operating account. The next day Ms. Westbrook transferred $110,679.03 of the $141,679.03 in proceeds from the Firm’s operating account into the Firm’s IOLTA account. Ms. Westbrook intentionally left $31,000 of the proceeds in the Firm’s operating account because she was concerned about whether the Firm could timely pay her salary and/or bonus. Ms. Westbrook delayed paying the payroll until $31,000 of the proceeds was deposited into the Firm’s operating account. Ms. Westbrook’s partners were not aware of her concern regarding the Firm’s cash flow. Ms. Westbrook used Client A’s proceeds to pay her salary, bonus and other Firm expenses.
On November 1, 2006 Ms. Westbrook transferred $10,000 from the Firm’s operating account into the Firm’s IOLTA account, which was intended to represent a portion of the $31,000 in Client A’s proceeds that was returned. On March 24, 2007, Ms. Westbrook transferred $20,000 from the Firm’s operating account to its IOLTA account intended to represent the remaining portion of Client A’s proceeds, leaving $1,000 unaccounted for. Ms. Westbrook knowingly concealed the misappropriation of the proceeds from Client A and the Firm and prepared a client account ledger for Client A that intentionally misrepresented that the proceeds were deposited into the Firm’s IOLTA account. The ledger did not describe any of the transfers from the Firm’s operating account to the Firm’s IOLTA account as described above.
At the time of these events, Ms. Westbrook owed back taxes to the IRS. On January 31, 2007, the Firm received an Order of Withholding to withhold Ms. Westbrook’s earnings to pay an outstanding student loan obligation of $41,067.55.
During the period from January 17, 2007 to April 17, 2007, Ms. Westbrook did not deposit any of the $6,300 in cash that was received by the Firm into the Firm’s operating account or other bank accounts. Ms. Westbrook concealed her conversion of the cash by preparing a list of retainers and payments received by the Firm to falsely represent that certain cash payments were deposited into the Firm’s operating account on certain dates. On April 4, 2007, Ms. Westbrook issued a check for $800 to her then husband to pay her share of household finances. The check stub falsely reflected that the check was an “early draw” issued to Ms. Westbrook. In fact, the $800 check was not an early draw and Ms. Westbrook did not deduct the $800 from any future salary or bonus check. The Firm had no knowledge of and had not given authority for the $800 check.
From February 2007 through April 15, 2007, the Firm’s Partners received a bonus based on 60 percent of the income generated by each lawyer; the remaining 40 percent belonged to the Firm. Ms. Westbrook’s handwritten records reflect that she generated $5,750 of income for the Firm from February 2007 through March 31, 2007. Based on the 60% bonus formula, Ms. Westbrook was entitled to a bonus of $3,450. Ms. Westbrook issued a bonus check to herself for the amount of $5,750. Ms. Westbrook intentionally converted $2,300 from the Firm causing injury to the Firm.
Unbeknownst to the Firm, during 2006, Ms. Westbrook failed to pay the Firm’s 941 payroll taxes. On April 16, 2007, an IRS agent made a field call to the Firm to investigate this matter. On May 15, 2007, Ms. Westbrook resigned from the Firm.
During Ms. Westbrook’s deposition on December 13, 2010, she falsely testified that she was directed to place Client A’s proceeds in the Firm’s operating account, that she did not transfer funds in November 2007, and that there was “never” a time Ms. Westbrook decided to pay herself 100 percent of the bonus money. Ms. Westbrook’s testimony was made with the intent to benefit her by concealing her ethical misconduct.
Ms. Westbrook’s conduct violated RPC 1.15A(b), prohibiting a lawyer from converting, borrowing or pledging client or third person property for the lawyer’s own use; RPC 8.4(b), prohibiting a lawyer from committing a criminal act that reflects adversely on the lawyer’s honesty, trustworthiness or fitness as a lawyer in other respects; and RPC 8.4(c), prohibiting a lawyer from engaging in conduct involving dishonesty, fraud, deceit or misrepresentation.
Jonathan Burke represented the Bar Association. Ms. Westbrook represented herself. Terence M. Ryan was the Hearing Officer.
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