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H. Gary Wallis (WSBA No. 6311, admitted 1975), of Tacoma, has received a reprimand pursuant to a stipulation approved by the Disciplinary Board on May 15, 2000. The discipline is based upon his failure to make reasonable efforts to ensure his firm correctly administered its trust account.
Mr. Wallis worked for attorney Marvin Olsen from the time he was admitted to practice. In approximately 1977, Mr. Wallis and Mr. Olsen formed a partnership in which Mr. Wallis remained until 1998. During that time, Mr. Olsen was the managing partner, and had control and responsibility for the client trust account. In 1993, the Bar Association audit manager determined, after a preliminary audit, that the firm’s trust account contained $14,000-$20,000 less than the known client balances. Although Mr. Wallis did not believe that he had caused the shortage, he deposited $8,000 to cure it. Mr. Wallis believed Mr. Olsen would cure the remaining shortage, but he did not.
In January 1994, after a full audit, Mr. Olsen and Mr. Wallis were told that they needed to deposit $6,989.96 to cure a remaining trust account shortage. The auditor also found that the firm failed to keep complete client records, failed to keep all client funds in the trust account, used client trust funds for business with other clients, and that Mr. Olsen used client trust funds for his own business transactions. No funds were deposited into the trust account to cure the shortage.
Although Mr. Wallis believed Mr. Olsen would deposit the required funds, Mr. Wallis did not verify that the firm’s trust account was in compliance with the Rules for Professional Conduct. In December 1997, the auditor reported findings from a subsequent audit. The auditor found that the four problems listed above were continuing.
By failing to take reasonable steps to ensure the firm properly managed the client trust account and failing to take steps to mitigate Mr. Olsen’s misconduct, Mr. Wallis’s conduct violated RPCs 1.5, 1.14, 5.1 and 5.3.
Joy McLean represented the Bar Association. Mr. Wallis represented himself.
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