Personal injury attorney Edward T. Wells was disbarred Friday.
Investigators say he pocketed more than $29,000 he charged to clients and a Salt Lake law firm for full-price airfare when he actually used frequent-flier mileage and discounts.Wells, an attorney with Robert J. DeBry & Associates, misappropriated or failed to account for funds in 35 client matters between February 1994 and August 1996, according to a complaint brought by the Utah State Bar Office of Attorney Discipline and documents filed Friday in 3rd District Court.
Third District Judge Sandra Peuler ruled that Wells be disbarred and ordered him to pay $29,381 restitution to the firm, which he already has done.
"The firm of course feels betrayed by the situation," said Steven Sullivan, DeBry managing at-tor-ney. "By making full restitution, it's better than nothing, but it doesn't change the circumstances of his acts."
Stephen R. Cochell, bar chief disciplinary council, commended the DeBry firm for its swift action in the matter.
"It takes a great deal of integrity, a great deal of honesty for lawyers to regulate and to report their partners or associates, to ensure a high standard of professionalism," Cochell said.
Wells last summer admitted to misappropriating the funds days after DeBry launched an investigation into the attorney's client matters, Sullivan said. The firm promptly ordered an audit of his cases and subsequently paid about $9,000 restitution to nine affected clients.
Wells has fully paid restitution to the firm - $6,000 of which was taken out of his retirement fund, Cochell said.
Salt Lake accounting firm Foote, Passey, Griffin and Co. performed the audit, which included seizing copies of checks Wells received and reviewing credit card and checking account statements, a list of airline ticket purchases and Delta Air Lines Sky Miles statements.
The audit, returned March 5, found discrepancies between items, including airfare charged to the client and the ticket's actual cost, court documents show.
"We believed this was a case that warranted disbarment in the fact that it involved intentional misappropriation of client funds and over time, a large number of clients," Cochell said.
Wells, who has an unlisted number, could not be reached for comment.
But in a response filed in the court, Wells reported he took in more than $13,500 for frequent flier trips and about $950 when he canceled airline tickets and drove instead.
Wells said the rest of the money constituted either innocent mistakes or other discrepancies such as price differential errors, the documents state.
Wells has no prior disciplinary record, was remorseful and cooperated with the bar investigation, Cochell said. The bar in-ter-preted Wells' consent to discipline as a substantial step toward rehabilitation.
Wells is eligible to apply for readmission to the bar in August 2001, according to bar rules. Should he do so, he will be required to retake the bar exam and undergo a character examination, among other requirements, Cochell said.