Clients' Security Fund.

• Author: Montecalvo, Richard
• Position: Annual Reports of Committees of the Florida Bar: 2018-2019

The Florida Bar Clients' Security Fund was established in 1967 as a voluntary, discretionary fund to reimburse clients who have suffered a monetary loss as a result of misappropriation, embezzlement, or other wrongful taking by a member of The Florida Bar when acting as the claimant's lawyer. The Clients' Security Fund is currently financed by $25 of every active and inactive Florida Bar member's annual fees, as well as each application to appear pro hac vice in Florida, and has over $2.6 million budgeted for fiscal year 201819 to pay claims brought by former clients. The fund reimburses clients under two circumstances: where an attorney takes an advance fee, but then fails to provide any services up to a maximum amount of $5,000, and for misappropriation or theft of client monies up to a maximum amount of $250,000. In the last fiscal year, the fund received 175 new claims and paid out nearly $2 million to clients for claims filed against 103 Florida lawyers. As of the date of this report, for the fiscal year ending June 30, the fund has received 144 new claims against 81 lawyers and has currently approved 35 claims with approved losses of over $2.5 million. Claims are paid only after a lawyer has been suspended, deceased, placed on the inactive list for incapacity not related to misconduct, or has had the member's status as a member of The Florida Bar revoked or terminated. Fee claims, and misappropriation claims less than $1,000, are paid promptly after approval. All other claims are paid on a pro rata basis after the end of the fiscal year if there are not enough funds available to pay 100 percent of the approved losses.

Since its inception, the Clients' Security Fund has processed more than 12,600 claims and paid out nearly $41 million dollars to victims of attorney theft.

Claims are filed in writing by the former client, reviewed by Bar staff and, when appropriate, referred to a voluntary member of the committee for investigation. The 2018-19 Clients' Security Fund Committee is composed of 25 of these volunteer attorneys appointed from all regions of Florida by the Bar's president-elect. The committee meets four times during the year, but its volunteer members are actively engaged in the review and investigation of claims throughout the year. This is a true working committee. Membership on the committee involves extensive time and energy in the investigation of claims and preparation of reports. Guided and assisted by dedicated Bar...