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Legal Ethics

$700K Client Comp Case in Wash. State Ups Annual Fee Ante for All Attorneys

Posted Dec 19, 2008 1:41 PM CST
By Martha Neil

In the largest compensation claim ever paid by the Washington State Bar Association's client protection fund as a result of misconduct by a single lawyer, clients of former attorney Barry Hammer are to receive $700,000.

Hammer, 62, has surrendered his license and was sentenced to three years in federal prison in a wire fraud case. It was related to his practice of convincing clients to invest in a real estate scheme that actually funneled some of the money to him personally and resulted in the bankruptcy of his law firm, reports the Everett Herald. Awards ranging from $3,800 to $40,000 will be paid to 26 of Hammer's former clients, for a total of $700,000.

As a result of the payout, a mandatory $15 fee imposed on the state's 30,000 attorneys to provide money for the client protection fund will be increased to $30 next year. The fee increase must be approved by the state supreme court before it is finally adopted.

Comments

1.

B. McLeod
Dec 19, 2008 7:51 PM CST

Free tip: Don’t sell securities to clients of your law practice.

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