Rhode Island Lawyer Suspended for Misappropriating Funds

Links for Opinion: http://www.courts.ri.gov/supreme/pdf-files/10-21order.pdf and http://www.caught.net/caught/butti.htm

In Re: Butti, 986 A.2d 251; 2010 R.I. LEXIS 10 (R.I. 2010), the Rhode Island Supreme Court suspended a lawyer indefinitely for misappropriating funds she took from settlements of personal injury cases. She was accused of receiving the funds and not paying the creditors from the settlement money. It was also discovered that she had not been authorized to practice law since March of 2008 because she failed to pay Supreme Court administrative fees. However, she continued to practice law. Several complaints were filed by clients and creditors.
The Rhode Island Supreme Court affirmed that Butti had misappropriated funds and engaged in the unauthorized practice of law. Butti knowingly took money from settlements and used the money for her own personal use. This is a violation of Rule 1.15 of the Rhode Island Disciplinary Rules of Professional Conduct. She also continued to practice law knowing that she was not authorized to do so according to Rule 5.5 of the Rhode Island Disciplinary Rules of Professional Conduct.
The Supreme Court upheld the appeal in favor of the Disciplinary Counsel. Butti was suspended from engaging in the practice of law “until further notice.” This case teaches the importance of honesty in the practice of law. Butti blatantly misappropriated funds and conducted dishonest practices. However, some attorneys would not be so bold. They might try to mask their dishonest practices with comingled money or other schemes. An attorney must prove their trustworthiness by keeping an accurate and detailed account of funds in their accounts. Therefore, if a question arises, they have the record keeping and statements to prove their honesty. Let us hope that Butti is not an example of the moral compass predominant in the field of law.