ILNews

Report issued in UPL claim on trust mill case

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The Indiana Supreme Court has never determined whether the money spent during the prosecution of an Unauthorized Practice of Law claim fits into the "costs and expenses incurred by such a hearing" category, which means that a losing party pays under Administrative Disciplinary Rule 24.

Justices may now have that chance as they consider whether an estate planning company engaged in unlawful legal work.

Presenting an issue of first impression, a special commissioner on Monday submitted an 88-page report to the state's highest court regarding a UPL claim brought by the ISBA last October in a trust mill case, State of Indiana, Ex Rel. Indiana State Bar Association v. United Financial Services, et al., No. 94S00-0810-MS-551.

ISBA initiated the action against estate planning service United Financial Systems in Indianapolis, accusing it of operating a trust mill that engaged in unauthorized practice of law and wrongly collecting more than $1 million from at least five families throughout the state. A total of five counts are made in ISBA's action - one for each person or couple who bought an estate-planning package with United Financial.

In March, Senior Judge Bruce Embrey from Miami Superior Court was brought on as a special commissioner to consider the facts in this case. He held an out-of-court, two-day trial in late May and has now given his findings to the state's justices to determine whether any UPL occurred.

As part of his 266 findings of fact and conclusions of law, Judge Embrey noted that between October 2006 and March 29, 2009, about 0.09 percent of United Financial's total income from all national operations came from estate planning assistance in Indiana; 18.8 percent of the fee income generated nationally came from Indiana estate planning services.

Aside from requests that United Financial permanently stop any UPL in Indiana, ISBA also asks that the Supreme Court order a disgorgement of fees and reimbursement of money collected by the company to those people affected.

Judge Embrey notes that ISBA has never settled a UPL case in exchange for money from an individual or corporation accused of violating the state provisions, and that no costs or fees have been received by ISBA in the course of processing these cases.

In the instant case, ISBA paid about $25,882 to various vendors for copies and transcripts, and paid an attorney who testified in rebuttal to the company's evidence. ISBA also paid $11,093 to Indianapolis law firm Bingham McHale for legal counsel on this case, copies, long-distance phone calls, and other routine office expenses. The report details nearly $36,975 in expenses.

However, Judge Embrey points out that the terms "costs and expenses incurred by such a hearing" in the context of Administrative Disciplinary Rule 24, which are to be paid by the losing party, have not been defined by the court.

"Including the cost to the ISBA of engaging counsel to prosecute a UPL claim pursuant to Rule 24 is a matter of first impression," he wrote.

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  1. Hello currently just withdrew from laporte county drug court and now I have lost the woman I love which also was in drugcourt and was put in jail without a,lawyer presentfor her own safety according to the judge and they told her she could have a hearing in two weeks and now going on 30days and still in jail no court date and her public defender talks like he,s bout to just sell her up the river.

  2. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  3. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  4. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  5. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

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