A Wisconsin attorney's license to practice law is revoked for numerous counts of professional misconduct, including preparing an estate plan for an assisted living facility resident and his spouse that delayed the resident's eligibility for Medicaid and significantly depleted the couple's assets. Office of Lawyer Regulation v. Laux (Wis., No. 2014AP974, June 24, 2015).
The Wisconsin Office of Lawyer Regulation (OLR) filed a 23-count complaint against attorney Sarah Laux related to her representation of clients in four estate planning matters. In brief, the complaint alleged that Ms. Laux converted client funds, made misrepresentations to clients and others, and that she failed to competently advise clients in estate planning matters or to safeguard their assets.
The court took judicial notice that Ms. Laux also faces pending criminal charges, including bank fraud, wire fraud, money laundering and filing a false tax return. In one estate matter, Ms. Laux converted hundreds of thousands of dollars from her clients. In another, Ms. Laux prepared an ill-advised estate plan for a couple with a modest estate, A.C. and J.C., using the strategy of “spousal refusal” instead of spousal impoverishment. Using spousal impoverishment would have allowed A.C., the community spouse, to keep all of J.C.'s income and most of the couple’s assets. Instead, J.C. had a difficult time being approved for Medicaid benefits and the couple paid significantly more out of pocket for his assisted living care.
Ms. Laux filed a petition for consensual license revocation with the OLR, thereby acknowledging that she was unable to defend herself against the allegations. The referee appointed by the OLR to investigate recommended that the court approve Ms. Laux's petition, that her license be revoked and that she be ordered to pay restitution.
The Supreme Court of Wisconsin approves the petition, finding that “The scope of Attorney Laux's misconduct is staggering . . . and warrants the severest discipline that we impose, namely, the revocation of her license to practice law in Wisconsin.” The court orders Ms. Laux to pay restitution.
For the full text of this decision, click here.
To read news articles on Ms. Laux's pending criminal charges, click here or here.
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