Tuesday, July 14, 2020

N.J. attorney disbarred for taking more than $91K from dead client’s trust account

By Anthony G. Attrino

An attorney in Bergen County – under federal investigation for allegedly failing to pay $1.5 million in taxes – was disbarred after a state ethics panel found he took $91,749 from a dead client’s trust account for his personal use, according to court documents.

Donald S. MacLachlan, of Allendale, was disbarred July 1 after failing to appear before the state’s Disciplinary Review Board to answer an accusation that he knew the money belonged to a client’s family and that he was not authorized to use the money, court records show.

MacLachlan, 66, was suspended from practicing law on Oct. 3, 2019 after the state received a complaint that he misappropriated funds belonging to the estate of Guy A. Blehl, 61, of Montclair, who died of cancer in July 2016.

No criminal charges have been filed in the case. According to Law.com, MacLachlan had created a trust on behalf of Blehl. After Blehl died, MacLachlan collected $1 million in insurance proceeds and placed the money in three accounts, with 50% going to Blehl’s widow, and 25% each to his son and daughter.

But MacLachlan allegedly made several unexplained cash withdrawals from bank accounts associated with Blehl, according to the Disciplinary Review Board. About $24,000 of the money went to pay for his daughter’s horseback riding lessons on a farm in New York, according to Law.com.

MacLachlan was disbarred for “knowing misappropriation of client funds, failure to promptly disburse funds” and “commission of a criminal act that reflects adversely on a lawyer’s honesty, truthfulness or fitness,” according to the court order signed July 1.

In February 2018, the U.S. Department of Justice sued MacLachlan, alleging he owes more than $1.5 million in unpaid income and payroll taxes. MacLachlan has not answered the complaint, which is pending in U.S. District Court.

MacLachlan was admitted to the New Jersey Bar Association in 1981. A business phone number in his name has been disconnected. A voicemail message left on a cellphone number in MacLachlan’s name was not immediately returned on Thursday.

Full Article & Source:
N.J. attorney disbarred for taking more than $91K from dead client’s trust account

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