Attorney Escrow Accounts, IOLA and Ethics: What Every New Lawyer Needs to Know

(4768 Ratings)

Produced on: October 11, 2015

Course Format On Demand Audio

Taught by

Categories:

Course Description

Time 68 minutes
Difficulty Intermediate

Attorneys holding client funds face a variety of ethical issues, complicated by the confluence of two apparently unrelated issues. On the one hand, state and federal statutes regulate the relationship between a bank and its customer, notably when it comes to the processing of checks. On the other hand, scam artists try to take advantage of the peculiarities of the check collection process by getting attorneys to release funds from an escrow account while the attorney’s exposure to a counterfeit or other bad check deposit has not expired.

 

Attorneys must follow a series of important steps in dealing with their escrow accounts. They must set the accounts up correctly. They must put client funds in the correct type of account and not commingle client funds with their own money. They must then exercise care in how they handle the accounts and disburse funds, and finally they must be vigilant against the many variations of scams targeting attorneys.

 

Jay L. Hack, a partner in the firm of Gallet Dreyer & Berkey, LLP and former Chair of the Business Law Section of the New York State Bar Association, calls upon his 39 years of practice representing banks and other financial institutions to help attorneys navigate the process of protecting both their clients’ funds and their own licenses to practice law. 

 

Learning Objectives:

I.     Understand how to establish an escrow account and whether funds belong in an Interest on Lawyer Account (IOLA) deposit versus a non-IOLA deposit

II.    Gain the ability to determine when funds can be safely disbursed from an attorney escrow account and how to disburse them

III.   Learn about the state and federal legal framework that affects how checks are processed and the effect of check processing on escrow account risks

IV.   Understand the “Bounced Check Rule” and the reporting requirements for attorney escrow accounts

V.    Learn to recognize scams targeting attorney escrow accounts and how to avoid them



This course originally appeared as a part of our October 2015 Bridge the Gap Event.

Faculty

Jay L. Hack

Gallet Dreyer & Berkey, LLP

Mr. Hack’s primary practice focus is providing full-range legal services to banks and other financial institutions. His broad-based financial institutions practice runs the gamut, from acting as issuer's counsel in many public offerings by bank holding companies to helping clients address examination report criticisms so that enforcement action can be avoided. He has also assisted many clients in developing retail banking documentation that satisfies federal and state consumer regulations or commercial necessities. 

 

He also supports other practice areas within the firm by bringing his extensive knowledge of banking transactions and banking law to the table when bank clients are in need of real estate or litigation assistance. 

 

Bar Admissions

  • New York, 1977
  • U.S. District Court, Southern District of New York, 1978

Education

  • Boston University School of Law, J.D. cum laude, 1976

    • Boston University Law Review: Member (1974-75), Editor (1975-76)

  • University of Michigan, A.B. with honors, 1973

    • Major: Psychology (high honors)

    Published Works

    Tugboats, Glaucoma and the Check Collection Process, NY Business Law Journal, Fall 2008.

     

    Trust Preferred Securities. Community Bank Notes, the magazine of the Independent Bankers Association of New York State, March/April 2005.

     

    Declarations Against Penal Interest - Standards of Admissibility in an Emerging Majority Rule, 56 Boston University Law Review 148 (1976), quoted by the United States Supreme Court inWilliamson v. United States, 512 US 594, 617 (1994) (Kennedy, J., concurring); also cited by United States Courts of Appeals for the first, third and fifth circuits, the Court of Military Appeals and the Supreme Courts in the states of California, Kansas, Maine, Massachusetts, Minnesota, New Hampshire, New York, North Carolina and Wisconsin.

     

    Professional Associations and Memberships

    • New York State Bar Association

      • Member, Business Law Section

      • Member, Banking Law Committee

Reviews

SJ
Stuart I. J.

Very informative

AA
Andrew A.

Very informative

AW
Anne W.

Excellent!

SC
Stephen C.

Lots of personal experience, didn't read from an outline. :p

DB
Donald B.

Excellent

GL
Gregory L.

The program was on-point for me as a solo practitioner. I thought the presenter was well-versed in the topic and maintained my attention throughout the on-demand presentation.

TS
Thomas S.

One of the better presentations.

DS
Dennis S.

Very knowledgeable lecturer.

AR
Angela R.

found this course well done

DC
Daniel C.

Very informative. Good lecturer.

PJ
PHILLIP J.

very well done

JH
John H.

Great lecture.

HG
Henry G.

Good course. Effective speaker.

VS
Vincent S.

Excellent

SH
Sharon H.

Excellent

EG
elisa g.

He was great and I found it informative.

ML
Michael L.

The program was excellent

SN
Sandra N.

Excellent trainer -very knowledgeable and communicated the material well.

SS
Steven S.

Excellent thorough course!

TW
Tracy W.

Excellent

EM
Edward M.

Excellent, informative class

EL
Erika L.

This was really informative.

RB
Roberta B.

Excellent overview of Attorney responsibility with client's money and to be weary of scams

KM
Kent M.

Given the current state of scams explored, I would recommend this to attorneys in all levels of practice. Well addressed by lecturer.

LP
Laura P.

Very technical and useful information.

EK
Ellen K.

1/2/2018 Fantastic

RW
Robert W.

Interesting and informative.

RA
Ray A.

Great

TN
Thomas N.

thanks

RK
Robert K.

One of the best and most practically useful CLE programs I have heard.

CB
Catherine B.

Good presentation.

HG
Howard G.

This was one of the best CLEs I’ve attended this year! Perfect delivery!

NG
Nadia G.

GREAT CONTENT! Very useful.

MS
Meghan S.

The supplemental materials are very helpful.

KM
Kevin M.

Hack is a proverbial Hagrid, watching out for the new young students at Hogwarts. They don't fully know how lucky they are to have had his advice and counsel until perhaps many years later.

MM
Murray M.

Excellent.

IA
irina a.

appreciate the subtle sense of humor :)

MW
Michael W.

Great course with critical information about scams being attempted against attorneys.

CH
crystal h.

Great speaker

JM
John M.

Great speaker!

RN
Robert N.

great

TM
Thomas M.

This program provided numerous good tips and guidance to numerous potential problems. Excellent!yyf

SJ
Scott J.

I will be looking for more programs by Jay Hack.

JG
Joshua G.

Very interesting presentation. The amount of mistakes made unintentionally is quite frightening.

KN
Karen N.

Very useful

LH
Linda H.

He likes his horror stories, but they are very memorable, which may keep us out of trouble.

WB
William B.

Very good course, and great instructor.

JW
John W.

Mr. Hack was terrific.

DM
David M.

very good

FM
Francis M.

Excellent presenter and presentation.

MS
Michael S.

Exceptional presentation,

AR
Aubrey R.

Riveting

BF
Beth F.

Loved this guy! Good job.

VN
Vincent N.

Engaging speaker

EF
Eric F.

great examples!

KS
Kathryn S.

thanks

SN
Sharmila N.

Well worth your time.

MW
Matthew W.

Excellent, particularly in regard to describing scams done against attorney on escrow funds attorney's oversee

RC
Richard C.

Very valuable warnings, even for experienced attorneys

KM
Karen M.

Referred a colleague today!

ER
Edgar R.

Very informative

RW
Roberta W.

Very helpful. Thank you.

JT
Janet T.

Excellent program with useful info.

JB
James B.

Excellent speaker.

PW
Patricia W.

Great true stories to back up the presentation!

JL
Juan Carlos L.

Excellent speaker with great examples

VB
virginia b.

great class!

JS
Jonathan S.

Excellent.

JL
Joshua L.

I really enjoyed the examples of actual check cashing frauds used during the presentation. Really interesting and educational.

MM
Meredith M.

Excellent presentation!

US
udai s.

good material and tips to maintain bank account.

RB
Rafiah B.

VERY INFORMATIVE AND SPEAKER VERY KNOWLEDGEABLE, GOOD EXAMPLES OF WHAT NOT TO DO

AL
Alfred L.

Learned a lot.

PS
Patrick S.

FANTASTIC

BK
Brian K.

This was an incredible class! Professor was incredibly knowledgeable as well as entertaining. As he says at the end of the lecture, "nailed it!"

TH
Tiffany H.

This was an extremely useful CLE and the attorney's presentation was excellent.

BH
Brian H.

Very practical

RS
Rebecca S.

Wonderful presentation, very informative and engaging speaker.

LW
Lisa W.

This has been by far one of my favorite Lawline CLEs. Jay L. Hack, the presenter, is captivating. I would highly recommend any of his CLE presentations. He made a dry subject, so fascinating. Thank you.

ML
Michael L.

Very good presenter and CLE.

KC
Krystle C.

This was an excellent CLE!

MW
Matthew W.

Great Great Class

JM
john m.

YOUR BEST LECTURER

LG
Leonard G.

Excellent course. Well presented

JB
James B.

Good course material and good instructor - Thanks.

WL
Wilson L.

Enjoyable guy!

MB
Michell B.

Very good course!

MS
Melody S.

Very informative and well presented

TS
Tagiana S.

Excellent lecture!!!

IK
Ivan K.

This course was very practical with relevant examples

JF
James F.

Fantastic presentation and presenter, bring him back!

JW
John W.

Great Update on scams!

MH
Michael H.

Good overview, Even for long time bar members

WS
William S.

Great course. Really enjoyed the scenarios that the instructor presented.

VB
Vanessa B.

Very engaging and informative speaker.

TL
Theodore L.

Given an amazingly technical area, a brilliant raconteur communicated a huge body of information with almost nail biting excitement. Wow.

MM
Michael M.

Excellent job!

RP
Robert P.

good presentation overall

OS
Olivia S.

What an excellent presenter!

SB
Sonia B.

This course was fantastic!

MK
mklaw2004@gmail.com K.

Speaker was extremely knowledgeable and spoke to inexperienced attorneys which was very helpful.

LG
Lisa G.

The best CLE presentation I have done to date.

LW
Lisa W.

Very interesting presentation! Exceeded my expectations.

VO
Vanessa O.

Vital information. Great presenter.

MO
Margaret O.

Great examples. Presenter appropriately emphasized importance of the rules. Presentation was clear and informative.

AH
Anyekache H.

This was a really good video with a lot of valuable information.

AE
Amy E.

speaker was dynamic and interesting.

LF
Lloyd F.

Excellent information provided in an effective manner.

GW
Glenn W.

liked the presenter!

BL
Benjamin L.

Instructor was excellent

CB
Celeste B.

Very Good refresher course , even for an experienced attorney.

DW
Danielle W.

Extremely good program.

WT
Walter T.

Thanks.

AS
Andrew S.

Good program

CC
Charles C.

This guy was great. Could listen to him all day. great issues. great all the way around, again one of my favorite CLEs from Lawline.

JM
joseph m.

excellent speaker!

YL
yekaterina l.

The anecdote about how a lawyer almost was disbarred was very good.

SB
Sally B.

Very good and interesting

LS
Larry S.

Well done.

NK
Nazar K.

Very useful course.

JW
Jeffrey W.

Interesting topic, using real-life examples. Very scary stuff.

KM
Kushal M.

well done!

JR
John D R.

Great lecture!

RB
Robert B.

Iearned information that I did not previously know.

GD
Gerald D.

So interesting!

MM
Mitchell M.

This is one of the most informative and usefull courses I have taken.

MM
Maria M.

Excellent. Knowledgeable! Great examples.

JT
James T.

Very good

SS
Sandra S.

The presenter took a topic (banking) that I personally thought would be boring, but his engaging style made it interesting. Very useful for new lawyers or those considering opening escrow accounts for the first time, like myself!

GG
Gloria G.

Very interesting

JS
Jo Anna S.

Thank you

PS
Philip S.

an eye opener.

SW
Steven W.

Very knowledgeable speaker

PM
Philip M.

Very informative. Well done.

FM
Frank A. M.

Funny, crystal clear, excellent speaker. I enjoyed this.

SI
Stan I.

It spelled out the dos and don't accurately and provided vivid examples

JR
James R.

Speaker was very good.

PS
Phillp S.

Brilliant. A cut above. Loved the banking attorney insight.

SP
Stuart P.

The Speaker does a very nice job

DL
David L.

Pretty informative

SR
Scott R.

Thanks!

JW
Jeffrey W.

This presenter is excellent, with important information on handling client's funds. I'd recommend this program to any attorney.

NM
Noel M.

Excellent course

RD
Rhonda D.

Attorneys should be required to review this seminar annually! Such a great speaker, with so much content. I may have to watch it again because there are so many circumstances I may not be able to appreciate until more time passes.

YK
Yvenne K.

Some areas were basic, but the information about the actual processing time of a bank check (and the horror story) and disbarment resulting from a bounced check to open an escrow account were very very helpful.

NB
Nick B.

Great topic and presentation.

CW
Cynthia W.

Extremely informative and interesting.

TD
Thomas D.

Riveting Lecture. Every lawyer should view it!

KM
Kevin M.

very good practical advice.

RF
Robert F.

Very well informed and very practical advise. Good examples bring the rules to light.

RL
Raymond L.

Great Program. The presenter was very interesting

BM
Byron M.

Excellent

CJ
Chris J.

Well done.

ST
Stephanie T.

Really good class. The speaker is engaging and provides important practice tips.

EC
Eugene A C.

Relevant, practical and well presented.

MS
Morgan E. S.

Very interesting

SH
Steven H.

Every attorney should watch this.

SF
Stanley F.

Very informative - very good presentation!!!

TJ
TeriMichelle J.

Great course; Good delivery of material

RS
Robert S.

Excellent job!

GM
Gerard M.

very important lecture speaker is great

RL
Randall L.

Presenter was excellent story teller with real life applications. Enjoyed it immensly

ME
Michael E.

I would take the "new lawyer" out of the title. Its a great course and would apply to many attorneys who have been practicing for years.

PS
Paul S.

I especially appreciated the examples of fraud directed at attorneys.

SK
Stephen K.

Very good presentation. Learned a lot of things I didn't know I didn't know.

LC
Leah C.

very interesting CLE.

EW
Edward J. W.

Great speaker.

DH
David H.

Very good speaker and content.

AF
Amy F.

Very informative.

WC
William C.

good presenter

NF
Nathaniel F.

Excellent presentation

JC
James C.

very practical; good examination of relevant law and rules

RW
Robert W.

I liked the presenter. He's got a different style, personality. A breath of fresh air, after a steady stream of more rigid speakers.

DS
Donald S.

Keep this guy. He can make even ethics seminars entertaining and informative. A mostly impossible task, that he accomplished effectively!

DH
David H.

Excellent.

SS
Sarah S.

I was glad to find that I knew most of this information already, but that is probably because I am a younger attorney and therefore more paranoid than some. This was a helpful overview and gave me peace of mind that I'm conducting myself ethically in terms of client funds.

VM
Viviana M.

Excellent program!

TK
Terry K.

Presenter was awesome. Reminded me of Bill Murray!

JF
Jillian F.

This was great. I loved the lecturer and the substance is memorable due to his storytelling.

LC
Liza C.

Love this speaker--Jay Hack was informative and interesting and very likeable!

MV
Mavis V.

this type of information is something every attorney should know the basics on!

WM
Warren M.

Very interesting fact situations! Need to be careful.

JA
John A.

Very useful

TD
Tom D.

Very helpful.

RK
Richard K.

Although Florida differs some the content was great for Florida attorneys

RM
Rudy M.

Clear and concise

NM
Neal M.

great presenter. good information and easy to follow

IF
Ilia Yvette F.

This guy was great.

SM
Sandy M.

The speaker made a somewhat boring topic interesting.

EG
Edward M. G.

This course should be mandatory.

EJ
Edward J.

One of the most knowledgeable, effective presenters I've seen.

PA
Paul A.

great presentation

ES
Edward S.

one of of your better presenters. very good

JM
Joseph M.

He is an old hand who knows his stuff.

MM
Michael M.

Might be the most valuable course offered on lawline

GC
Gerald C.

good course will listen again.

JW
Jonathan W.

This was very well presented and explained with the perfect balance of law and war stories.

LV
Laura V.

Excellent, knowledgeable speaker with great real world examples

SH
stephen h.

very informative

IG
Irena G.

good course

RW
Richard W.

Speaker was very very good.

MR
Michael R.

Tough subject

TF
thomas f.

Substantive. Very well delivered. Worth the price of admission.

LW
Linus W.

excellent presentation

EI
Edward I.

The instructor's examples were extremely helpful and relevant.

MF
melvin f.

Information about new scams useful- with cellphones and electronic deposit could have used even more to prepare for increase in scams.

TW
Tadia W.

I learned a LOT!! Great information!! This course is a must!

CB
Christopher B.

The segment on the electronic deposit was eye-opening

SK
STEPHEN K.

MR HACK: ONE OF THE BEST ATTY LECTURERS THAT I HAVE EVER HEARD IN MY LONG YEARS OF PRACTICE

AF
Andrew F.

superb practical program and engaging speaker

WM
William M.

Good warning to pitfalls trust accounts

WC
William C.

I have an LL.M. in Banking .Law so this was most interesting! The speaker was very good!

BC
Brandy C.

Very good information from a banking attorney perspective. Excellent presentation!

JM
Jerry M.

very informative

TS
Tom S.

Excellent presentation

DR
Dane R.

Very important for every attorney to see this course, even if you have no IOLA account. Very important.

DB
dalia b.

Great presentation...

EN
Ewa N.

Excellent speaker.

DL
David L.

Excellent

FB
Francis B.

Excellent

MC
Mark C.

informative

DO
Daniel O.

Great presentation; very useful information.

TB
Thomas B.

Very interesting scams were discussed.

JC
Joanne C.

good overview

TB
Tamela B.

This as really an eye-opener and how diligent an attorney must be with funds. Had no idea of all the possible way things could go wrong! Thank you for the info!

IG
Ira G.

Geared to New York practitioners, but plenty of good information for any state. I learned about some new "scams" to look out for.

GM
George M.

Excellent speaker - good examples and presentation.

SB
Sunil B.

excellent and very informative.

DB
Diane B.

Important warnings about financial scams that target attorneys.

HS
Herbert S.

Good tips from an attorney familiar with issues from a bank's perspective. Some interesting recurring frauds revealed.

AP
aryeh p.

Very good.

CL
Chun L.

very helpful information, thank you.

RC
Ronald C.

Interesting especially when it comes to internet and cell phone scams

DM
Daniel M.

Good stuff. Some basics and warnings on latest scams.

SM
Stephen M.

superb

MC
Michael C.

Very informative.

MO
Mary Kathleen O.

Important information, engagingly presented.

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