On Friday, June 2, 2023, the Presiding Disciplinary Judge of the Supreme Court of Arizona suspended attorney Stacy E. Scheff for her gross negligence spanning several years in billing practices and trust account disbursements.
The case is entitled “In the Matter of Stacy E. Scheff,” with case no. 2022-9091.
The charges cited Arizona Rules of Professional Conduct Rule 42, 1.15(a), (b)(d), and (e), Rule 43(a)(b). Rule 42, 3.1, and 8.4(d), 1.5(d)(3), 1.15(a)(d), and (e), and Rule 43(a)(b).
In a candid admission stated in an order accepting agreement for discipline by consent, the respondent acknowledged that the initial trust account records she provided to clients and the State Bar were both incomplete and inaccurate. This was a result of her gross negligence spanning several years in billing practices and trust account disbursements. Despite being aware that these records failed to meet the ethical rules governing trust accounts, the respondent proceeded to present the flawed information and trust account records to her clients and the State Bar, as they were the only available records at the time.
During a recent interview with the State Bar, the respondent and their current bookkeeper, Joseph Alvarez, shed light on the situation. Alvarez was hired subsequent to the respondent’s initial submission of trust account records in one client matter, specifically for the purpose of conducting a comprehensive review of client files and trust account records. These records, now referred to by Alvarez as “deficient documents,” were in dire need of reconstruction. As part of the review process, Alvarez made efforts to obtain all the necessary banking documents and client files in order to accurately reconstruct the billing and trust account records, reflecting the respondent’s legal services and the corresponding documentation of client funds deposited in the IOLTA and/or operating account.
The order states:
“The 44-page Agreement recites in detail the facts underlying the stipulated misconduct, which are not repeated herein. Count One relates primarily to the “gross mismanagement” of Ms. Scheff’s IOLTA account over a period of years, with a corresponding failure to maintain required trust account documentation. Count Two involves the failure to timely perfect a client’s appeal. Count Three involves inter alia, trust account violations. In discussing the trust account violations, the Agreement states, in pertinent part:
As admitted by Respondent in her answer, the initial trust account records provided to her clients and the State Bar were incomplete and inaccurate as a result of years of grossly negligent billing and trust account disbursements. While she knew that the trust account records were not in compliance with the ethical rules governing trust accounts, she provided her initial statements and trust account records to the clients and the State Bar based solely on the only flawed information and trust account records available.”
In consideration of the agreement for discipline by consent, the Supreme Court of Arizona decided to suspend the respondent from the practice of law.
The Disposition states:
“IT IS ORDERED that STACY E. SCHEFF, Bar No. 028364, is suspended from the practice of law in Arizona for six months, effective 30 days from the date of this order, 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.”
Ms. Scheff practices in Tucson, Arizona. She is licensed in Arizona. Her info can be found on lawyer.com.
A copy of the original filing can be found here.
