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Howard K. Michaelsen (WSBA No. 3928, admitted 1959), of Spokane, received a reprimand on December 4, 2007, following approval of a stipulation by the hearing officer. This discipline was based on conduct involving failure to maintain complete trust account records, disbursement of funds in excess of funds clients had on deposit in his trust account, and disbursement of funds from the trust account before corresponding deposits had cleared the bank.
Between July 2002 and July 2005, Mr. Michaelsen maintained an IOLTA client trust account, for which he failed to keep a check register with a running balance. During this time period, Mr. Michaelsen also failed to reconcile his trust account bank statements to his own records on a regular basis, failed to maintain ledgers for individual client matters, made deposits totaling $4,770.44 without identifying the client, and made withdrawals totaling $5,784.89 without identifying the client. During this time period, Mr. Michaelsen disbursed funds in excess of funds that the clients had on deposit in his trust account and before corresponding deposits had cleared the bank, resulting in a $5,559.28 shortage in his trust account. Upon being notified of the shortage by the Bar Association in November 2005, Mr. Michaelsen reimbursed his trust account; however, in some instances, he was unable to identify clients who had positive balances in his trust account. After Mr. Michaelsen and the Bar Association auditor were able to identify the clients who had positive balances in the trust account, Mr. Michaelsen refunded the positive balances to these clients in October and November 2007.
Mr. Michaelsen’s conduct violated former RPC 1.14(a), requiring all funds of clients paid to a lawyer or law firm be deposited in one or more identifiable interest-bearing trust accounts maintained as set forth in the rules; and former RPC 1.14(b)(3), requiring a lawyer to maintain complete records of all funds, securities, and other properties of a client coming into the possession of the lawyer and to render appropriate accountings to his or her clients regarding those funds.
Kevin M. Bank represented the Bar Association. Mr. Michaelsen represented himself. Richard B. Geissler was the hearing officer. |