On Friday, February 7, 2025, the Supreme Court of Iowa publicly reprimanded attorney Stephen C. Ebke. This reprimand follows findings from an audit conducted by the Attorney Disciplinary Board, which revealed significant violations related to the management of his client trust account.
The case is entitled “Attorney Disciplinary Board v. Stephen C. Ebke,” with case no. 24-1990.
The reprimand stems from issues identified in a Client Security Commission audit that began with a referral to the board after irregularities were noted in Ebke’s trust account practices. The audit uncovered multiple instances of noncompliance with established rules governing attorney trust accounts.
Among the findings, the board noted a lack of diligence concerning succession planning, failure to maintain required records, and improper use of the trust account. Specific violations included inadequate monthly reconciliations, missing individual client ledger balances, and failure to return client funds promptly. The audit also revealed that Ebke had allowed negative balances in client accounts, which is a clear breach of trust account regulations.
The board’s report highlighted that several client balances had remained inactive for more than a year, and there were outstanding checks that had not been cashed for over six months. Notably, one check dated June 2, 2020, for $158.60, was cited as stale. The use of the trust account was further called into question due to the apparent commingling of client and attorney funds, with $12,000 of earned fees improperly held in the trust account.
Additionally, the audit found that Ebke had not provided contemporaneous notice or accounting to clients regarding the funds held in trust, which is a requirement under Iowa rules. The report indicated that his responses during the audit raised further concerns, as he admitted to not performing the necessary monthly reconciliations, stating that these were done periodically by an accountant.
Ebke’s conduct was also scrutinized due to discrepancies in his annual Client Security Questionnaires filed in 2021 and 2022. He had answered affirmatively to whether reconciliations of trust account balances were performed monthly, despite acknowledging in writing that he did not conduct triple reconciliations as required.
The board’s findings revealed a pattern of inadequate record-keeping and a lack of compliance with rules designed to protect client funds. This included failing to keep required financial records for a minimum of six years, a breach of the Iowa Rules of Professional Conduct.
The board noted that there were no mitigating factors identified during the audit. However, several aggravating factors were considered, including Ebke’s false responses to the questionnaires and a previous admonition issued by the Client Security Commission in September 2020 for similar violations. The earlier admonition pointed out issues like negative client balances and failure to maintain required records.
The board concluded that Ebke’s failure to adhere to the rules governing trust accounts could potentially harm clients and indicated a serious lapse in accountability regarding client funds. As a result, the board determined that a public reprimand was warranted for his violations of multiple Iowa Rules of Professional Conduct and Court Rules.
According to avvo.com, Mr. Ebke is an adoption attorney in Papillion, Nebraska. He attended the Creighton University School of Law, graduating in 1991. He acquired his law license in Iowa in the same year.
A copy of the original filing can be found here.
