Willkommen! And Bienvenue! Please Keep Your Cabaret Money Out Of Your Trust Account!

Trust account problems can lead to discipline. That you’re not supposed to use your trust account for your strip club should be obvious, but it cost one Florida attorney his law license. Sure, there were other issues too (namely failing to cooperate with the investigation, lying to a judge, and failing to use restitution funds for that purpose), but his explanation as to why he used his trust fund to pay for the strip club he owned—that no bank would let him open an account for a strip club—just doesn’t pass the smell test. There, are, what, hundreds* of such clubs in Florida and presumably they are able to operate within normal financial institutions?

From an attorney ethics standpoint, this story, like most others, isn’t really about the salacious stuff, though it makes for good headlines. Co-mingling of funds belonging to clients with those belonging to the attorney (other than small amounts needed to pay bank fees) is prohibited in trust accounts (pdf), period, end of story. It doesn’t matter if it’s your kid’s lemonade stand.

Also, I got asked this so I’ll answer—no, there really isn’t anything in the Wisconsin Supreme Court Rules to prohibit attorneys from also owning adult businesses—or any other business, for that matter—that are otherwise legal. That said, many rules are 24/7, so if you are dishonest in your business dealings (prohibited by SCR 20:8.4(c)) or your business partner is one of your clients (allowed under certain circumstances, with caveats, SCR 20:1.8(a)), the Rules may hit even when you’re not practicing law. But, the Rules do not contain a morality clause.

(*Yes, I googled this from my work computer and then thought better of it before I got an answer.)

h/t to my nerd friend Dave Sorensen