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Adam Tucker operates a small criminal defense firm. Tucker is the only person in the firm with the authority to approve transfers out of the firm’s trust account.
On Dec. 27, 2023, a $2,500 transfer from the firm’s trust account to the firm’s operating account overdrew the firm’s trust account by $373.52. Then, on Jan. 2, 2024, another $2,500 transfer from the trust account to the operating account overdrew the trust account by $1,473.52. The two transfers were the result of a bank error and weren’t tied to any client matters. The bank rectified the error once Tucker brought it to the bank’s attention.
Nevertheless, Tucker’s accounting for his trust account was inadequate, according to the disciplinary opinion. He used practice management software, but the software only tracked deposits into, not withdrawals from, the trust account. Tucker didn’t reconcile his internal accounting records and his trust statements quarterly, as required.
Tucker tracked new matters opened in December 2023 and January 2024 as well as payments the firm received on open accounts in those months. Tucker’s December 2023 report reflects that his firm was paid $69,000 for new matters that month and earned $32,375 on those same matters, leaving a balance of at least $36,625 in unearned funds that should have been in trust at the end of December 2023. Instead, the account balance was $1,026.
In January 2024, the firm was paid $73,450 for new matters opened in that month, but it earned only $27,700. From those matters alone, the firm should have held $47,750 in trust. Instead, the closing balance for January 2024 was $26,476.
According to the disciplinary opinion, Tucker knowingly took unearned funds out of the firm’s trust account to satisfy law firm and personal expenses. His withdrawals were based upon his and the firm’s financial needs, rather than based on whether funds were earned. Tucker has since begun tracking all funds received and transferred, and he now tracks earned fees, withdrawals and fee benchmarks. Tucker has worked to replenish the firm’s trust account since January 2024; the account was fully replenished on Jan. 30.
The presiding disciplinary judge approved Tucker’s stipulation to discipline and suspended him from the practice of law for three years, effective June 13. To be reinstated to the practice of law, Tucker must prove by clear and convincing evidence that he has been rehabilitated, has complied with all disciplinary orders and rules and is fit to practice law.