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. I can understand a 10 yr suspension for drinking and driving and not following the rules,but don't you think the people who compleate their sentences and are trying to be good people of their community,and are on the right path should be able to obtain a drivers license to do as they please.We as a state should encourage good behavior instead of saying well you did all your time but we can't give you a license come on.When is a persons time served than cause from where I'm standing,its still a punishment,when u can't have the freedom to go where ever you want to in car,truck ,motorcycle,maybe their should be better programs for people instead of just throwing them away like daily trash,then expecting them to change because they we in jail or prison for x amount of yrs.Everyone should look around because we all pay each others bills,and keep each other in business..better knowledge equals better community equals better people...just my 2 cents

  2. I was wondering about the 6 million put aside for common attorney fees?does that mean that if you are a plaintiff your attorney fees will be partially covered?

  3. I expressed my thought in the title, long as it was. I am shocked that there is ever immunity from accountability for ANY Government agency. That appears to violate every principle in the US Constitution, which exists to limit Government power and to ensure Government accountability. I don't know how many cases of legitimate child abuse exist, but in the few cases in which I knew the people involved, in every example an anonymous caller used DCS as their personal weapon to strike at innocent people over trivial disagreements that had no connection with any facts. Given that the system is vulnerable to abuse, and given the extreme harm any action by DCS causes to families, I would assume any degree of failure to comply with the smallest infraction of personal rights would result in mandatory review. Even one day of parent-child separation in the absence of reasonable cause for a felony arrest should result in severe penalties to those involved in the action. It appears to me, that like all bureaucracies, DCS is prone to interpret every case as legitimate. This is not an accusation against DCS. It is a statement about the nature of bureaucracies, and the need for ADDED scrutiny of all bureaucratic actions. Frankly, I question the constitutionality of bureaucracies in general, because their power is delegated, and therefore unaccountable. No Government action can be unaccountable if we want to avoid its eventual degeneration into irrelevance and lawlessness, and the law of the jungle. Our Constitution is the source of all Government power, and it is the contract that legitimizes all Government power. To the extent that its various protections against intrusion are set aside, so is the power afforded by that contract. Eventually overstepping the limits of power eliminates that power, as a law of nature. Even total tyranny eventually crumbles to nothing.

  4. Being dedicated to a genre keeps it alive until the masses catch up to the "trend." Kent and Bill are keepin' it LIVE!! Thank you gentlemen..you know your JAZZ.

  5. Hemp has very little THC which is needed to kill cancer cells! Growing cannabis plants for THC inside a hemp field will not work...where is the fear? From not really knowing about Cannabis and Hemp or just not listening to the people teaching you through testimonies and packets of info over the last few years! Wake up Hoosier law makers!

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