News

New York firm and lawyer accused of misappropriating client funds

Posted on Jan 29, 2009

According to Reuters a New York lawyer and the law firm was charged with money laundering, grand larceny and scheming to defraud 23 incapacitated clients for converting client funds to his own use. The allegations are that $4 million was taken from a fund for children with cerebral palsy and used for personal use.

But prosecutors allege Rondos spent the money on mortgage payments for his New Jersey home and on "extensive home renovations, including landscaping, kitchen renovations, and a home theater."

In Iowa client funds are held in a trust fund, kept separate from the lawyer’s funds and subject to audit by the Iowa Bar Association. If misappropriated the Iowa lawyers have set aside funds to reimburse and to protect the clients. In Iowa we clean our own house.

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