Top state court toughens rules for lawyers who give investment advice to clients
New legal ethics rules adopted last week by the Pennsylvania Supreme Court impose stricter standards on lawyers who give investment advice to clients and strengthen the enforcement process against those who transgress.
When the rules take effect in less than 60 days, a lawyer will be prohibited from offering or recommending investments in products in which he or she has a financial interest and “brokering, offering to sell, selling or placing any investment product unless he or she is separately licensed to do so,” according to the Legal Intelligencer (sub. req.) and the Pennsylvania Record.
The new rules will also streamline the enforcement process against lawyers who transgress.
Several high-profile attorney investment schemes prompted the changes in the state’s rules of professional conduct, Chief Justice Ronald Castille tells the Tribune-Review.
They included the $6 million that attorney Anthony J. Lupas, 80, is accused of stealing from clients (he has been found incompetent to stand trial) and the $15 million to $20 million lost by clients of Jeffrey Mottern, who committed suicide in March.
“My hope is this eliminates the problem altogether,” Castille told the newspaper. “But human beings being what they are, somebody may try to ignore the new rules or get around the rules. If they do, we hope to catch them faster.”
Related coverage:
Citizens’ Voice: “Lupas’ alleged Ponzi scheme prompts change”
Wilkes Barre Times-Leader: “Lupas fraud case in Luzerne County spurs changes by PA Supreme Court”
See also:
Patriot-News: “Hummelstown lawyer Jeffrey Mottern’s assets ordered to remain frozen”
