On Thursday, August 11, 2022, the Presiding Disciplinary Judge of the Arizona Supreme Court ruled on charges for attorney discipline against Phoenix attorney Frances G. McGinnis for violating the Trust Account rules.

The case, titled In the matter of a member of Frances S. McGinnis, was brought by the State Bar of Arizona. Case number  #2022-9052.

The charges cited violation of Rule 42, Ariz. R. Sup. Ct, ER 1.15(a) (safekeeping of client property), ER 1.15(d) (prompt notification and delivery of funds); Ariz. R. Sup. Ct., Rule 43(b)(1)(A) and (C) (safeguarding client trust account) and Rule 43(b)(2)(A), (B), (C) and (D) (trust account requirements).

The rules of professional conduct can be found here.

Among the allegations against McGinnis, were as follows, to wit:

The State Bar of Arizona received an insufficient funds notice on the Respondent’s client trust account.

On 12/9/2021, check number 2358 in the amount of $3,000.00 attempted to pay against the account when the balance was $1,593.60. The bank paid the check and did not charge an overdraft fee leaving the account with a negative balance of ($1,406.40).

On 12/10/2021, the State Bar of Arizona received an additional insufficient funds notice on the Respondent’s client trust account. That day, check number 3247 in the amount of $349.00 attempted to pay against the trust account when the balance was negative ($1,406.60). The bank returned the check and did not charge an overdraft fee, leaving the account balance unchanged.

On 12/13/2021 check number 3248 in the amount of $294.00 attempted to pay against the account when the balance was negative ($1,406.40). The bank paid the check and did not charge an overdraft fee leaving the account with a negative balance of ($1,700.40).7. On 12/14/2021 check number 3247 attempted to pay against the account for a second time when the balance was negative ($1,700.40). The bank again returned the check and did not charge an overdraft fee leaving the balance unchanged.

The Trust Account Examiner sent Respondent a copy of the overdraft notice and requested an explanation of the overdraft and copies of the related mandatory records. The Trust Account Examiner subsequently sent Respondent multiple requests for additional documents and expanded the period of review to September 2019 through December 2021.

Respondent provided the requested information with exceptions and explained that the occurrence of the overdraft was the result of several disbursement errors.

After reviewing the trust account records the Examiner determined that forty checks in the total amount of $31,889.35 were disbursed from the trust account in error from October 2020 through December 2021.

On 12/17/2021, Respondent transferred $4,000.00 into the trust account, leaving a deficit in the amount of $27,889.95.

After determining the total amount of disbursements made in error, Respondent deposited $14,000.00 into the trust account on 4/20/2022, $13,000.00on 6/8/2022, and the remaining $889.35 on 6/22/2022, correcting the deficit in the trust account.

This created a conversion of other client funds in various amounts for more than a year and a half. Respondent was not performing the proper monthly three-way reconciliations during this time and therefore did not identify the issue prior to the overdrafts.

Further review of the Examiner showed that the general ledger and individual client ledgers do not reflect the payor of deposits. In addition, not all of the disbursement and deposit entries on the general ledger and individual client ledgers are recorded on the correct dates, and the deposit records during the period of review do not reflect the name of the client on whose behalf the deposit was made.

On July 29, 2022, the State Bar and McGinnis filed an Agreement for Discipline by Consent, where McGinnis conditionally admitted that she violated the above-mentioned rules. McGinnis voluntarily waived her right to an adjudicatory hearing, as well as all motions, defenses, objections, or requests that could be asserted.

Presiding Disciplinary Judge Margaret H. Downie accepted the Agreement for Discipline by Consent pursuant to Rule 57(a), Ariz. R. Sup. Ct., 

The Order states:

“IT IS ORDERED that Respondent FRANCES S. MCGINNIS, Bar No. 023865, is reprimanded for her conduct in violation of the Arizona Rules of Professional Conduct and Rules of the Supreme Court of Arizona, as outlined in the consent documents.

IT IS FURTHER ORDERED that Respondent is placed on probation for a period of two years.,,, 

IT IS FURTHER ORDERED that Respondent pay the costs and expenses of the State Bar of Arizona in the amount of $1,200.00within 30 days of the date of this order.”

As of today, Ms. McGinnis is listed on the website of law firm Law Offices of Thompson & McGinnis as a practicing attorney. Her info can be found online at https://www.lawyer.com/frances-mcginnis.html.

She attended Thomas M. Cooley Law School, graduating in 2005. McGinnis practices in Phoenix, Arizona. She has been licensed in Arizona, license #023865.

A copy of the original filing can be found here.