Conn. Disciplinary Counsel Targets Website for Lawyer Referrals

Local grievance panels in Connecticut have found probable cause of an ethics violation by two lawyers who entered into agreements with a bankruptcy website that sends potential clients their way.

The ethics probe was the result of a complaint by Norwich bankruptcy lawyer Zenas Zelotes, who contends a bankruptcy website operated by TotalAttorneys Inc. pays for referrals in violation of ethics rules, state laws and federal bankruptcy laws, the Connecticut Law Tribune (sub. req.) reports. Lawyers who sign contracts with the website, www.clearbankruptcy.com, have to pay $65 for every person who contacts them through the service, according to Zelotes. The company operates about a dozen websites in all, Zelotes says, for different practice areas.

Zelotes filed the complaint after a TotalAttorneys marketing representative contacted him. He said the website is taking business away from lawyers who don’t participate. “I felt something significant had to be done,” Zelotes told the Law Tribune.

Connecticut chief disciplinary counsel Mark Dubois told the Law Tribune there are ethical problems with the arrangement if the fees paid by the lawyers well exceed the costs of operation. TotalAttorneys counters that the fee covers operational costs and support services, and its website is an example of co-op advertising. The website is not a referral service, its founder Kevin Chern argues, because the call center doesn’t screen for potential clients, but rather makes connections based on their location.

Dubois has raised a second ethics issue. “The advertising rules here require there to be the name of a Connecticut-admitted lawyer on the ad and that lawyer has to file the ad with the grievance committee for review,” which hasn’t happened, he told the Law Tribune.

Probable cause findings were issued against two Connecticut lawyers, Kenneth Lenz of Orange and Steven Lesko of Old Saybrook, the story says. Lesko’s answer to the complaint said he reviewed state ethics rules and federal bankruptcy laws and was satisfied that his agreement with TotalAttorneys was legal, according to the story.

But Lesko had another problem with the website. He says he paid $455 for contracts over two months, but never retained a client or collected any fees as a result.

TotalAttorneys has posted its arguments at this link.

Updated at 12:37 p.m. CT to include link to TotalAttorneys materials.