Iowa Supreme Court Attorney Disciplinary Board v. Patrick Alex Henrichsen
2013 Iowa Sup. LEXIS 4
Iowa2013Background
- Henrichsen, licensed to practice in Iowa since 2000, became the fourth shareholder in a West Des Moines law firm in 2008.
- Shareholders’ agreement required all earned fees to be deposited into the firm’s general account; quarterly distributions were made as deferred earnings based on overhead and each shareholder’s revenue.
- From 2008 to 2010, Henrichsen deposited checks made out to him into his personal account, withholding at least $10,000 from the firm’s funds.
- The other shareholders confronted him; he left the firm and settled financial matters during separation, starting his own practice.
- An external audit of client trust accounts showed no irregularities and no client harm; only receivables were affected.
- In October 2010, Henrichsen self-reported to the Board; the commission recommended a public reprimand; the court imposed a three-month suspension with no reinstatement for that period.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Henrichsen violate 8.4(c)? | Board: yes, by converting firm receivables to personal use. | Henrichsen: claim centers on a control issue, not entitlement to funds. | Yes; violated 8.4(c). |
| What sanction is appropriate for this misconduct? | Board: sanctions should deter and reflect seriousness; prior cases support substantial discipline. | Henrichsen: mitigated factors favor a lighter sanction. | Three-month suspension appropriate. |
Key Cases Cited
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Isaacson, 750 N.W.2d 104 (Iowa 2008) (depositing firm receivables into personal account violated duties; client harm not necessary for sanction)
- Iowa Supreme Ct. Bd. of Prof'l Ethics & Conduct v. Irwin, 679 N.W.2d 641 (Iowa 2004) (conduct involving conversion of fees and deceitful practices warranted substantial discipline)
- Iowa Supreme Ct. Bd. of Prof'l Ethics & Conduct v. Huisinga, 642 N.W.2d 283 (Iowa 2002) (isolated misconduct with firm funds justified public reprimand given context)
- Iowa Supreme Ct. Bd. of Prof'l Ethics & Conduct v. Schatz, 595 N.W.2d 794 (Iowa 1999) (long-term conversion of fees led to severe sanction)
- Iowa Supreme Ct. Bd. of Prof'l Ethics & Conduct v. Carr, 588 N.W.2d 127 (Iowa 1999) (defrauding firm by misappropriating fees supported strong sanction)
- Iowa Supreme Ct. Bd. of Prof'l Ethics & Conduct v. Sylvester, 548 N.W.2d 144 (Iowa 1996) (ongoing conversion of firm and client funds warranted disciplinary action)
- Comm. on Prof'l Ethics & Conduct v. Piazza, 405 N.W.2d 820 (Iowa 1987) (misappropriation of partnership funds; failure to deposit into firm account)
- Comm. on Prof'l Ethics & Conduct v. Hanson, 244 N.W.2d 822 (Iowa 1976) (attorney misconduct involving misdirected funds and related deception)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. McClintock, 442 N.W.2d 607 (Iowa 1989) (public reprimand for failure to deposit earned fees; restitution and cooperation noted)
- Iowa Supreme Ct. Att’y Disciplinary Bd. v. Ireland, 748 N.W.2d 498 (Iowa 2008) (case emphasizing balance of factors: nature of violations and sanctions to deter)