On Tuesday, October 7, 2025, the Supreme Court of California issued an order regarding the disciplinary proceedings of attorney Todd Michael Abbott, State Bar Number 227897. The court’s order stems from a stipulation reached between Abbott and the State Bar of California, detailing facts, conclusions of law, and a proposed disposition for alleged misconduct.

The case is entitled “In the Matter of Todd Michael Abbott,” with case number S292201.

The stipulation, filed with the State Bar Court on July 3, 2025, outlines a series of events involving Abbott’s client trust accounts and the handling of funds related to a life insurance policy. The core of the issue revolves around the actions of Abbott’s father, Howard B. Abbott, also an attorney, who transferred to inactive status with the State Bar. According to the stipulation, Howard asked Todd Abbott to open a client trust account that Howard could use to hold insurance premiums he was receiving. Todd Abbott agreed and opened a client trust account titled “Abbott and Abbott.”

The document details how funds intended for a life insurance policy owned by Mehrmen Lalli and beneficially owned by Shlomo Prizant’s Generation Trading, Inc., were allegedly misappropriated. Alexander Burekhovich, an insurance broker, wired funds to the “Abbott and Abbott” client trust account, CTA 2325, with instructions for Howard Abbott to pay the insurance premiums. The stipulation indicates that Howard directed Todd Abbott to disburse funds from CTA 2325 to other accounts, including Todd Abbott’s firm client trust account, CTA 1014, and his personal account.

While Todd Abbott claimed to be unaware of the misappropriation and trusted his father’s directions, the State Bar argued that he was grossly negligent in failing to exercise control over the account, allowing it to be used and directed by a non-attorney. The stipulation acknowledges that no death benefit was paid to Prizant after Lalli’s death, leading to a lawsuit against both Howard and Todd Abbott, which was later dismissed. Howard Abbott faced criminal charges, admitted to misappropriating $515,900, and was convicted of wire fraud. No criminal charges were brought against Todd Abbott.

In addition to the misappropriation allegations, the stipulation addresses issues related to commingling and trust account management by Todd Abbott. It states that he transferred funds from his personal account to CTA 1014 on numerous occasions and used funds from CTA 1014 for personal and business expenses. Furthermore, he allegedly failed to maintain proper journals, ledgers, and monthly reconciliations for both CTA 1014 and CTA 2325 as required by the Rules of Professional Conduct.

The State Bar concluded that Todd Abbott acted with gross negligence, allowing the misappropriation of Lalli policy premiums. This was deemed a violation of Business and Professions Code section 6106, constituting an act of moral turpitude, dishonesty, or corruption. Additional violations of the Rules of Professional Conduct were cited, including failure to maintain funds in trust, commingling funds, and failing to maintain required records.

The Supreme Court’s order adopts the State Bar Court’s recommendation, suspending Todd Michael Abbott from the practice of law for one year, staying the execution of that suspension, and placing him on probation for one year. As a condition of probation, Abbott is suspended from practicing law for the first 90 days.

The order mandates compliance with the other probation conditions recommended by the Hearing Department of the State Bar Court in its July 3, 2025, order. Additionally, Abbott must take and provide proof of passage of the Multistate Professional Responsibility Examination (MPRE). The order also emphasizes the need to comply with California Rules of Court, rule 9.20, regarding notification to clients.

Abbott is also required to pay monetary sanctions of $1,000 to the State Bar of California Client Security Fund, payable in installments over three years, and to cover the costs of the disciplinary proceedings, also payable in installments.

According to Avvo, Mr. Abbott is a lawyer in Chula Vista, CA. He acquired his law license in California in 2003.

A copy of the original filing can be found here.