Call Us Today For A Free Quote | 866.940.1101
Professionals Insuring Professionals
 

A few months ago wrote about a San Diego attorney, Richard Medina,   that was using the Law Firm’s Trust Account to help hide the source of $12 Million in violation of the Bank Secrecy Act.  By using the firm’s trust account he was able to evade the bank reporting laws that are meant to report on large money transactions.

Medina and his co-conspirators, Omar Trevino Caro Del Castillo and Francisco Cuevas, obtained commissions for their services, extracting a fee from the millions of dollars transmitted abroad. Caro Del Castillo and Cuevas have already pleaded guilty and are awaiting sentencing.

Medina, in his role in the conspiracy, illegally utilized his law firm’s “Interest on Lawyers’ Trust Accounts” (IOLTA) for receipt, transport, and transmission of cash to international destinations. Civil attorneys routinely receive client funds, known as “Trust money,” to be held in trust for future use – including IOLTA Accounts.

The Wall Street Journal  is now detailing on how hundreds of millions of dollars was allegedly siphoned out of 1Malaysia Development Bhd., the Malaysian state fund known as 1MDB, passed through law-firm pooled accounts in the U.S., federal prosecutors said in lawsuits filed in July. Investigators in several countries say billions of dollars are missing from the Malaysian fund.

While the ABA continues to lobby to prevent law firm trust accounts with having to comply with anti-money laundering laws, one wonders how long will IOLTA accounts be exempt from such discloses, given the continued abuse of such accounts.

Posted 1:43 PM  View Comments

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Quick Contact
Referrals
We love referrals! And thank you even more for your continued business.
Customer Service
Self policy service any time of the day, directly from our website.
Join Our Newsletter
Stay in touch with the latest events, news and offers we have.
From Our Blog From Our Customers
Read More Read More
Stay In Touch With Us Helpful Site Links Read the News
Sign up now to receive new and updates Stay up-to-date with the latest industry, community and agency news through our newscenter. We also provide handy hints on how to save on your insurance.

Read More
We have the expertise to find you the right coverage at the right price 
Powered by Insurance Website Builder