Opinion
MR 21926.
November 2007.
Summary of Misconduct:
Mr. Prendergast, who was licensed in 1980, was suspended for one year, with the suspension stayed after ninety days by a one-year period of probation subject to conditions. He mishandled client funds that he was holding to pay a client's lienholders, failed to distribute promptly to a client certain payments that he had received on the client's behalf, and neglected a personal injury case. The suspension is effective on December 11, 2007.
Order of the Court:
The petition by the Administrator of the Attorney Registration and Disciplinary Commission to impose discipline on consent pursuant to Supreme Court Rule 762(b) is allowed. Respondent Bradley Edward Prendergast is suspended from the practice of law for one year, with the suspension stayed after 90 days by a one-year period of probation subject to the following conditions:
a. Respondent shall, within the first 30 days of probation, enroll in the Chicago Bar Association's Law Practice Management Program, and be mentored by a lawyer-member(s) of the Chicago Bar Association's Lawyers' Management Assistance Committee during the period of probation;
b. Respondent shall, upon enrollment in the Law Practice Management Program, notify the Administrator, in writing, of the name of the attorney(s) with whom respondent is assigned to work;
c. Respondent shall continue to participate in the Law Practice Management Program throughout the probation term; d. Respondent shall authorize the attorney(s) assigned to work with him in the Law Practice Management Program to:
1. Disclose to the Administrator on a quarterly basis, by way of signed reports, information pertaining to the nature of respondent's compliance with the Law Practice Management Program;
2. Promptly report to the Administrator respondent's failure to comply with any part of the Law Practice Management Program;
3. Respond to any inquiries by the Administrator regarding respondent's compliance with the Law Practice Management Program;
e. Respondent shall attend meetings scheduled by the Commission probation officer as requested by the Administrator. Respondent shall submit quarterly written reports to the Administrator concerning the status of his practice of law and the nature and extent of his compliance with the conditions of probation;
f. Respondent shall establish and utilize a system for handling funds belonging to clients and third parties that conforms to the requirements of Rule 1.15 of the Illinois Rules of Professional Conduct including:
Trust Account Procedures: Basic accounting records that must be maintained daily and accurately.
Account Check Register: List sequentially all trust account deposits and trust account checks and maintain a current and accurate daily balance on the trust account. Account Receipts Journal: List chronologically all deposits into the trust account. Each deposit will list the date of the deposit, the source of the deposit, the client matter, the deposit number, and the amount of the deposit. Maintain a copy of each item deposited.
Account Disbursement Journal: List chronologically all trust account disbursements. Identify each disbursement with the date of the disbursement check, the trust account check number, the payee, the purpose of the disbursement, the client matter, and the amount of the disbursement check.
Client Ledger Journal: List chronologically for each client matter all receipts, disbursements, and remaining balances. Prepare a separate page for each client matter and list chronologically all receipts and disbursements and remaining balances for each client matter. Source documents which must be preserved for seven years:
Bank statements
Deposit slips
Cancelled checks. All trust account checks must have a named payee (no checks written to "cash") and the memo portion of the check must contain a reference to a client matter.
Time and Billing Records: Copies of records from client files that are necessary for a full understanding of the lawyer's financial transactions with the client: e.g., retainer and engagement agreements, settlement statements to clients showing the disbursement of the settlement proceeds, bills sent to clients and records of payments to other lawyers or non-employees for services rendered.
Reconciliations: There must be a running balance maintained for all ledgers and account books. The balances in the client ledger journal must be reconciled each month with the balances in the trust receipts and disbursement journals, the account checkbook register, and the bank statements. Records of these reconciliations must be maintained for seven years.
g. Respondent shall comply with the Illinois Rules of Professional Conduct and shall timely cooperate with the Administrator in providing information regarding any investigations relating to his conduct;
h. Respondent shall notify the Administrator within 14 days of any change of address; and
i. Probation shall be revoked if respondent is found to have violated any of the terms of probation. The remaining nine-month period of suspension shall commence from the date of the determination that any term of probation has been violated. Suspension effective December II, 2007. Respondent Bradley Edward Prendergast shall reimburse the Client Protection Program Trust Fund for any Client Protection payments arising from his conduct prior to the termination of the period of suspension/probation.