On Thursday, December 19, 2024, the Florida Bar filed a petition for the emergency suspension of attorney William G. Schlotthauer in the Supreme Court of Florida. The petition alleges that Schlotthauer misappropriated over $1 million from trusts for which he served as the sole trustee. The Florida Bar’s petition cites Rule 3-5.2 of the Rules Regulating The Florida Bar, which allows for emergency measures when there is an immediate and serious threat to the public or clients.
The case is entitled “The Florida Bar v. William G. Schlotthauer,” with case no. 2025-10,119(12A).
The Florida Bar claims that Schlotthauer’s actions have led to significant public harm, detailing that he misappropriated at least $1,061,499.00 from two trusts belonging to Louis E. Marinaccio Jr. and Ann Marie Marinaccio. According to an affidavit from Patrick M. Dougherty, a certified public accountant and auditor for The Florida Bar, Schlotthauer’s alleged misconduct occurred from 2019 to 2023.
The bar’s investigation revealed that in 2013, Schlotthauer entered into a verbal agreement with the Marinaccios to reduce his trustee fees to a maximum of 0.25% of the trust assets per year, down from a fixed fee of $25,000. This agreement remained in effect until November 2021. At the time, the trusts reportedly had assets totaling approximately $28 million, meaning Schlotthauer would have been entitled to about $70,000 in fees, according to the terms of the agreement.
However, The Florida Bar alleges that Schlotthauer withdrew significantly more than what was permitted under the terms of the agreement. In 2019, he reportedly transferred a net amount of $284,922.50 from the trust accounts to his personal and business accounts, despite being owed only $68,544.00 in trustee fees that year. He is accused of disbursing $216,378.50 more than what was justified based on the trust’s tax return.
The allegations continued in subsequent years, with Schlotthauer reportedly transferring $273,174.50 from the trust accounts in 2020 and again exceeding his entitled trustee fees. In November 2021, the Marinaccios informed Schlotthauer that he would not receive any fees unless he provided a detailed invoice for his work and that his fees could not exceed $1,000 per month without their approval.
Despite this, the petition claims that he transferred $539,665.00 from the trust accounts to his personal and business accounts in 2021, and continued to withdraw funds in 2022 and 2023 without providing appropriate documentation or justification. Over the entire period from 2019 to 2023, Schlotthauer is alleged to have transferred a total of at least $1,261,072.00 from the trust accounts.
The Florida Bar’s petition emphasizes that Schlotthauer has violated several rules regulating attorneys, including those concerning the safekeeping of property and trust accounting. The bar also notes that Schlotthauer is currently ineligible to practice law due to delinquency in continuing legal education requirements.
In light of these serious allegations, the Florida Bar requests that the court issue an order for Schlotthauer’s immediate suspension from practicing law in Florida. The petition outlines specific actions that he must cease immediately, including accepting new clients and initiating any litigation on behalf of clients. Furthermore, he is required to notify all relevant parties, including clients and co-counsel, of the emergency suspension.
According to avvo.com, Mr. Schlotthauer is an insurance attorney in Lakewood Ranch, Florida. He attended the Loyola University New Orleans School of Law, graduating in 1998. He acquired his law license in Florida in 2000.
A copy of the original filing can be found here.
