News : Lawyer's license revoked over theft

Vinton lawyer, John K. Fischer, has had his law license revoked by the Iowa Supreme Court for misappropriation of client funds. The court found an "intentional act of theft," warranted the move.

Last year the Attorney Disciplinary Board accused Fischer of numerous ethics rule violations. The Grievance Commission also found several rules of professional conduct had been violated. The Grievance Commission then recommended that his license be revoked.

In this case, Fischer was the lawyer representing a business operated by two individuals involved in a legal settlement. The two had agreed to evenly divide a settlement of $15,000 in 2014.

One of the individuals paid Fischer $9,200 with $7,500 to be paid to the insurance company with the remaining $1.700 to be put toward attorney fees. Instead, Fischer sent the insurance company $6,198 and applied the rest toward lawyer fees for the other individual, then failed to tell the client what had been done. The individual, who paid Fischer the money, told the Grievance Commission, that he had not instructed Fischer to divide the money in this way. Fischer determined that the individual was responsible for the complete bill as the president of the company.

The insurance company did not cash the check. Fischer then took that money, according to the ruling.

When the insurance company failed to receive the full amount of the settlement, they followed up with legal action. Filing a motion to enforce the settlement, the district court granted the request. When the individuals failed to pay the $15,000 by the due date, a lien was placed on the individual's property. Fischer then avoided contact with his clients and did not inform them of the ruling. It was only discovered upon the sale of a home. The lien included the judgment along with interest and fees, bringing the total to $17,900. Fischer was then confronted by the client and paid the $6,198 making several payments. The last payment included the memo, "insurance check misplaced and allegedly uncashed."

In the ruling, the court said that Fischer never repaid the individual, who had the lien, $1,302. Fischer argued that it was unintentional and that it was a record-keeping error. The commission pointed out that Fischer "did not want them aware of the mishandling of fundsthis goes well beyond negligence." The commission said that Fischer's failure to tell his clients about the lien for more than three years reflects "adversely on his honesty, trustworthiness, and fitness to practice law."

Associate Justice Thomas Waterman agreed and declared Fischer intentionally misappropriated $1,302 and kept the $6,198 for himself upon learning that the insurance company didn't cash the check.

The court summed up the case stating, "the board has demonstrated by a convincing preponderance of the evidence that Fischer's misappropriation was an intentional act of theft, not a technical violation, and revocation is the appropriate sanction." Fischer may re-apply for his license after five years.

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