Estate Attorney caught stealing Funds - now a criminal act?

[Mills Co]

Jurisdiction

Iowa

My mother's estate has been a nightmare. No ending in sight and both the executor and attorney have refused to disclose financials for the past 7 months. No taxes have been paid to either the Iowa Dept of Revenue or the IRS

A court approved and ordered family settlement agreement was agreed up and ratified by the court over 14 months ago. In this agreement, both the executor and estate attorney we're to be awarded a set fee ($6,500 for each) when estate settled. THey both have already paid themselves in full.

Finally, the executor provided me the estate bank statements which shows the the attorney, on top of his $6,500 "fee" also wrote checks to himself for $457, $561 and $1,000 ($2,018). This amount, if considered theft in Iowa, is a Class D Felony

So, now....what do I do? Contact law enforcement? Again, for clarification, the $2,000+ was not used to pay taxes or estate expenses and also, the attorney already paid himself the alotted $6,500 fee

Thank You

 

[Tax Counsel]

So, now....what do I do? Contact law enforcement? Again, for clarification, the $2,000+ was not used to pay taxes or estate expenses and also, the attorney already paid himself the alotted $6,500 fee

Thank You

The fee should be for the attorney's time. The attorney may have had out of pocket expenses related to his work for which he was entitled to get paid. That may not be included in the attorney's fee. This is almost certainly not a criminal matter, and the likely response from the police will be that it's a civil matter. You first need to read the court order for the settlement carefully, along with the attorney's fee agreement and what the amounts paid to the attorney represent -- the attorney's time, expenses he paid for which he was entitled to reimbursement, or something else. If you can't sort that out on your own, you'll need to pay an attorney for help. And then you (or perhaps the estate) may need to sue the lawyer if, in fact, the attorney took fees to which he was not entitled. Just be aware that route may cost you more than you win, making it a self defeating pursuit.

You may also file a complaint with the Iowa Attorney Disciplinary Board. That might result in an order for reimbursement to the estate of the fees. No guarantees there, but it doesn't cost anything for you to make the complaint. But for the complaint to get taken seriously you need to show the board that the attorney took amounts he was not entitled to take. So far I'm not seeing a clear indication that that's the case. So you may still need to do at least a little digging to put together a compelling complaint.

You'll need to decide for yourself how much you are willing to do to pursue $2,000 for the estate, only part of which apparently you would get as it has to be shared with other beneficiaries.

 

[Mills Co]

Let me make this clear, the $6,500 to the Attorney was a FLAT fee. And again:
Attorney immediately paid himself this fee with the Estate not closed

There was money allotted (held back to pay taxes). The 3 checks totaling $2,018 that the Attorney wrote to himself were obviously NOT ok. This is theft but why is it, when an Attorney plunders a trust account and puts the money in their own pocket, it's not considered theft?

 

[flyingron]

There's a statutory fee in Iowa for the estate attorney (2%). That's just for his time. Any other tangible other expenses are owed by the estate. The attorney should have provided details to the executor. You can file complaints on attorney fees here: Client Security Trust Fund Claims.

You do not have the right to demand someone be prosecuted. It is society (as represented by the state) that is harmed by criminal activity, not a victim vs. perpetrator thing.

 

[army judge]

Let me make this clear, the $6,500 to the Attorney was a FLAT fee. And again:
Attorney immediately paid himself this fee with the Estate not closed

There was money allotted (held back to pay taxes). The 3 checks totaling $2,018 that the Attorney wrote to himself were obviously NOT ok. This is theft but why is it, when an Attorney plunders a trust account and puts the money in their own pocket, it's not considered theft?

Iowa, as do any of the other 49 states have thousands of state and local elected officials.

Iowa employs hundreds of law enforcement officials.

I suggest you engage your elected, appointed, and law enforcement officials.

Someone within the state's hierarchy should be able to direct you appropriately.

Private internet sites and the denizens thereof have no ability to try and/or punish miscreants within the borders of the Sovereign state known as Iowa.

 

[zddoodah]

If you have concerns about the conduct of the executors and/or the executor's attorney, retain counsel to represent your interests and help you figure out what's going on.

 

[Zigner]

I see you've got all the answers. Best of luck to you.