LEO: Conflicts of Interests  LE Op. 367

 

Conflicts of Interests.

 

April 23, 1980

 

It is not ethically proper for an attorney to obtain a personal line of

credit based upon the amount of funds maintained in the attorney's trust

account, even if the funds in the trust account are not exposed in any way

to the attorney's personal obligations on his line of credit. It is

improper for an attorney to establish a trust account at a particular bank

whereby a third party receives a personal line of credit as a result of

which the third party pays the attorney a fee of 1% of the average monthly

balance maintained in the attorney's trust account. It is immaterial that

the trust funds are in no way liable for the obligations which arise due

to the third party having obtained a line of credit. [See II: DR:4-101(B

), DR:5-106(A)(2) and DR:9-102.]

 

Committee Opinion April 23, 1980