Solo Practice

In general, when you run a business it is not uncommon to have another authorized to sign checks to pay vendors, landlords, etc.  This is done for convenience so you don't have to micromanage and can actually spend time running a business. 

But the legal profession is a different animal as you are entrusted with another person's money in a fiduciary relationship. Yet, that being said, I know of many an attorney who not only authorized check signing by paralegals and administrative assistants but also had their signature put on a rubber stamp for use on all manner of document. (The stamp was thrown out when that person was caught stealing from her employer.)

But it also opens up a very tempting door for the employee who has personal crisis, needs money and is capable of justifying their actions hoping never to be caught.  Such is the case here:

A former paralegal at Berman & Russo in South Windsor has pleaded guilty in federal court to stealing $1.7 million from the law firm.

Patricia Baddeley Meehan, 42, worked for Berman & Russo from 1998 to 2007 and primarily handled real estate closings. She had access to the firm?s clients? funds account and the firm?s operating account and was authorized by the law firm?s partners to write checks from both accounts, according to the U.S. Attorney?s Office.

Meehan, who lives in Ellington, admitted that between 2002 and 2007, she took cash advances on her personal credit cards of more than $1.4 million and around the same time began writing checks from the clients? funds account to pay those credit card bills. She eventually wrote 77 checks from the account totaling more than $1.7 million, all made payable to her credit card company.

Prosecutors say Meehan concealed her activities by falsifying the firm?s books and shifting money between the accounts to cover her tracks. Because she failed to report the proceeds of her fraud, she owes nearly $124,000 in taxes from the 2004 and 2005 tax years.

Meehan faces up to 43 years in prison and a fine of up to $3.4 million.

The need to trust is great because time is such a precious resource for solos who are juggling many hats.  Bookkeeping is the bane of many a solos' existence, too.  But misappropriation of funds and your reputation can put you out of business with a loss of reputation and quite possibly a loss of your license to practice law.  Not worth it.

The Rules of Professional Conduct cover your obligations to client funds.  Even the slightest irregularity in your trust account will trigger your Statewide Grievance Committee into action.  Take all necessary precautions and be very careful what authority you give others to act on your behalf.