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Seattle lawyer Biann-Sheng Tsui (WSBA No. 14561, admitted 1984) has been ordered reprimanded by the Disciplinary Board, after approving a Stipulation, for his conduct in failing to maintain complete records of client funds, allowing trust account overdrafts and failing promptly to disburse settlement proceeds to a client.
In November 1990, a WSBA auditor performed a random examination of Tsui’s pooled IOLTA client trust account pursuant to RLD 13.1(a). The auditor issued a report on April 3, 1991, finding that Tsui did not maintain complete records of client funds, commingled lawyer funds with client funds, was unable to identify the ownership of client funds, did not keep client ledgers and did not reconcile the bank statements to the check register balances, or reconcile individual client balances to the check register balance.
Tsui subsequently opened a second law office and set up a second pooled IOLTA account. Tsui’s pooled IOLTA accounts were overdrawn twice, once in 1992 and once in 1994. In the course of the investigation of the 1994 overdraft, a WSBA auditor examined Tsui’s IOLTA accounts for the calendar year 1994. The auditor issued a final report which indicated problems similar to those found in 1990.
On August 15, 1994, Tsui’s office received $12,000 in settlement funds on behalf of a client. That same day, Tsui’s assistant issued a check for $7,215 to the client representing her portion of the settlement. The assistant had the client sign an agreement with Tsui’s office stating that she would not cash the check without giving the office two weeks’ prior notice in return for Tsui’s attempting to obtain a discount for her on her medical bills. This transaction effectively constituted a $7,215 loan from the client to Tsui. The client did not have a reasonable opportunity to seek the advice of independent counsel regarding this transaction. There were insufficient funds in the pooled IOLTA trust account for the client to cash her check when issued on August 15, 1994; if she had cashed it at that time, the trust account would have been short by $5,739.
Tsui’s conduct in failing to keep complete records of client funds, in failing to maintain all client funds in a trust account, which resulted in payments or advances being made on behalf of one client from funds held for another client in the same pooled IOLTA account, in failing to withdraw attorneys’ fees when earned, and in withdrawing funds from his pooled IOLTA account without clear evidence of entitlement to those funds, each violated RPC 1.14.
Tsui’s failure to make reasonable efforts to ensure the conduct of his nonlawyer assistant was compatible with Tsui’s professional obligations, and Tsui’s permitting his staff to enter into a business transaction with a client without providing the client a reasonable opportunity to seek the advice of independent counsel, violated RPC 1.8(a) through a violation of RPC 5.3(b).
Disciplinary Counsel Anne I. Seidel represented the Association. William McInerney represented Tsui.
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