IN THE SUPREME COURT OF FLORIDA
THE FLORIDA BAR, Supreme Court Case No. SC- Petitioner, The Florida Bar File v. No. 2018-30,452 (19A) (CES) ELIZABETH JAYNE ANDERSON,
Respondent.
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PETITION FOR EMERGENCY SUSPENSION
This petition of The Florida Bar seeks emergency relief and requires the immediate attention of the court pursuant to R. Regulating Fla. Bar 3-5.2. The
Florida Bar seeks the emergency suspension of Elizabeth Jayne Anderson,
Attorney No. 626351, from the practice of law in Florida based on facts that establish clearly and convincingly that Elizabeth Jayne Anderson appears to be causing great public harm by engaging in a pattern of misappropriating client trust funds and neglecting client matters. Those facts are supported by the affidavit of
Branch Auditor Matthew D. Herdeker, CPA, attached hereto as Exhibit "A," the transcript of respondent’s sworn statement dated August 1, 2018 (without exhibits), attached hereto as Exhibit “B,” and The Florida Bar Inquiry/Complaint
Form received by The Florida Bar from Natasha Takhsha, Director of Stoneybrook
1 West Master Association, Inc. dated November 13, 2017 attached as Exhibit “C” and demonstrate the following:
1. The filing of this Petition for Emergency Suspension has been authorized by the Executive Director of The Florida Bar.
2. Respondent, Elizabeth Jayne Anderson, is and at all times hereinafter mentioned, was a member of The Florida Bar and subject to the jurisdiction and disciplinary rules of the Supreme Court of Florida.
3. Respondent currently is the subject of a bar disciplinary matter which has been assigned The Florida Bar file number 2018-30,452 (19A).
4. The Bar's investigation of this matter found that respondent has misappropriated client trust funds and engaged in a pattern of neglecting client matters.
5. After receiving The Florida Bar Inquiry/Complaint Form by Natasha
Takhsha, Director of Stoneybrook West Master Association, The Florida Bar conducted an audit of respondent’s trust accounts for the time period of December
1, 2013 through April 30, 2018. In addition, the bar conducted a review of respondent’s law office operating account for the time period of December 1, 2013 through April 30, 2018.
6. During the audit period, respondent maintained a total of seven trust accounts:
2 a. The Anderson Legal Group trust account maintained at
Northern Trust Company, opened in April 2010 and closed in November 2014.
b. The Anderson Legal Group trust account maintained at
Fairwinds Credit Union, opened prior to December 2013.
c. The Anderson Legal Group trust account maintained at Seaside
National Bank, opened in June 2014.
d. The Anderson Legal Group trust account maintained at
SunTrust Bank, opened November 2014 and closed in December 2016.
e. Anderson Hew, PLLC real estate trust account maintained at
Florida Community Bank opened October 2016.
f. Anderson Hew, PLLC wire trust account maintained at Florida
Community Bank opened October 2016.
g. Anderson Hew, PLLC general trust account maintained at
Florida Community Bank opened October 2016.
7. Respondent formed The Anderson Legal Group, LLC in 2010 and maintained trust accounts at Seaside National Bank & Trust, Northern Trust Co.,
SunTrust Bank and Fairwinds Credit Union. Respondent was the only authorized signatory on the accounts except for a brief period of time when respondent was out of the country and authorized her office manager, Cynthia Pischetola, to make disbursements from the trust account maintained at Fairwinds Credit Union.
3 8. At the time respondent opened her trust account for Anderson Legal at
Fairwinds Credit Union prior to December 2013, the Rules Regulating The Florida
Bar did not permit attorneys to maintain attorney trust accounts at credit unions and respondent failed to provide The Florida Bar Foundation with the required notice of this account.
9. In October 2016, respondent and attorney Jessica K. Hew formed
Anderson Hew, PLLC. Anderson Hew, PLLC maintained three trust accounts at
Florida Community Bank. Respondent and Ms. Hew were the only authorized signers on the firm’s trust accounts. Respondent and Ms. Hew terminated their partnership effective December 31, 2017.
Representation of Stoneybrook West Master Association
10. On or about December 16, 2013, Stoneybrook West Master
Association (hereinafter referred to as “Stoneybrook”), a homeowners’ association, hired respondent’s law firm, The Anderson Legal Group, to represent it in various legal matters including, but not limited to, collections, claims of lien, foreclosures, workouts, mediation, violations of the Declaration of Covenants and Restrictions, demand letters, attendance at board meetings, bylaws violations, annual elections, and any other matters involving the homeowners’ association that the Board of
Directors deemed necessary.
4 11. Stoneybrook terminated respondent’s services in or around August
2017 due to ongoing issues with lack of diligence, lack of communication, lack of timely and accurate billing statements, and failure to provide timely and accurate accountings of the funds respondent collected on behalf of Stoneybrook. Upon termination, respondent failed to provide Stoneybrook with its files in a timely manner, failed to provide Stoneybrook with an accounting of the funds respondent was holding in trust in connection with her representation of the homeowners’ association, and failed to remit trust funds to Stoneybrook’s new counsel in a timely manner.
12. From December 2013 to August 2017 during respondent’s representation of Stoneybrook, only seven lien foreclosures were commenced and none of the cases were prosecuted. Service of process was not completed on some files, the court dismissed some of the cases for lack of prosecution, and in one case, the subject property changed ownership. Based on the timing of the foreclosure filings, it appeared respondent commenced them only after
Stoneybrook began questioning respondent about the collection files.
13. Respondent failed to provide Stoneybrook with a timely and accurate accounting of the retainer paid by Stoneybrook at the outset of the representation in
2013.
5 14. Respondent used The Anderson Legal Group trust account at Seaside
Bank for all matters concerning her representation of Stoneybrook.
Seaside Trust Account
15. Respondent failed to label the Seaside account as a trust account as required.
16. Respondent failed to maintain the backs of cancelled checks for the
Seaside account as required.
17. Entries in the ledger cards for the Seaside trust account did not consistently contain reasons for transactions as required.
18. Respondent’s reconciliations for the Seaside account reconciliations for July 2014 and December 2014 did not identify outstanding checks by date and check number as required.
19. Respondent did not provide monthly comparisons for the Seaside account as required.
20. The bar’s audit determined that, as of February 23, 2018, there was a shortage of approximately $37,000.00 in the Seaside trust account, representing trust account funds belonging to Stoneybrook which respondent was required to promptly turn over to Stoneybrook’s new counsel.
21. On February 23, 2018, the beginning daily balance in the Seaside trust account was $1,543.54.
6 22. On February 23, 2018, respondent deposited a total of $37,000.00, which she received as a loan from her parents, into her Seaside trust account. The ending daily bank balance in the account was $38,543.54. On February 27, 2018, respondent used the funds she received from her parents to wire $37,870.03 to Neil
A. Saydah, P.A., the new attorney for Stoneybrook. Based on respondent’s ledger cards for Stoneybrook matters, the payment was for balances totaling $50,309.04 she owed to Stoneybrook in thirty matters, offset by overpayments to Stoneybrook totaling $12,439.01 in sixteen matters.
23. During her sworn statement on August 1, 2018, respondent admitted to the shortage in her Seaside trust account and stated that she would not have been able to pay the balances she owed to Stoneybrook without obtaining either the loan from her parents or using funds from her retirement account.
24. During her sworn statement on August 1, 2018, respondent testified under oath that the shortages in her Seaside trust account were the result of some deposits related to Stoneybrook being deposited to her law office operating account at Fairwinds Credit Union and some deposits related to Stoneybrook not being deposited at all. Respondent testified that this situation was the result of errors committed by her nonlawyer employees.
7 25. During her sworn statement on August 1, 2018, respondent admitted that the Stoneybrook funds that were deposited to her Fairwinds Credit Union operating account were no longer available.
26. The bar’s audit of respondent’s Fairwinds Credit Union operating account determined that between May 1, 2017 and February 27, 2018, the ending daily bank balance ranged between -$105.00 and $366.41.
27. Respondent engaged in a course of conduct in connection with her
Seaside trust account whereby she utilized Stoneybrook trust funds for her own benefit and/or for the benefit of her law firm.
28. On or around January 12, 2015, respondent issued a check for
$10,000.00 from her Seaside trust account, payable to Anderson Legal Group. The memo line was blank. The check cleared on January 13, 2015. Respondent recorded this check in the Belle Isle Bayou client ledger, which had a balance of
-$5,579.84 before the payment. The $10,000.00 payment increased the negative balance to -$15,579.84. No funds were available from the Belle Isle Bayou matter for respondent to use.
29. Respondent testified during her August 1, 2018 sworn statement that she believed the $10,000.00 payment was for her legal fees. Respondent stated that the Belle Isle Bayou matter was not related to Stoneybrook. Instead, it was a commercial real estate closing.
8 30. Respondent testified during her August 1, 2018 sworn statement that her Seaside trust account was used only for Stoneybrook matters. Therefore, respondent knew, or reasonably should have known, no funds were on deposit in the Seaside trust account from which she could pay herself legal fees for a real estate closing not pertaining to Stoneybrook.
31. Respondent knew or reasonably should have known there were insufficient funds on deposit in any of her trust accounts in connection with the
Belle Isle Bayou client matter for payment of a legal fee in the amount of
$10,000.00 on January 12, 2015.
32. Respondent deposited the $10,000.00 from her Seaside trust account to her law firm’s operating account at Fairwinds Credit Union and then used a portion of the funds to pay American Express for what respondent described as business expenses, to Navient for her student loan, and to an employee for payroll.
33. Without the deposit of the $10,000.00 from her trust account, respondent’s operating account would have had insufficient funds to cover those payments made by respondent.
34. During her sworn statement on August 1, 2018, respondent testified under oath that the funds for the Belle Isle Bayou matter, which she admitted was unrelated to her representation of Stoneybrook, were on deposit in a different trust account than the one she maintained at Seaside.
9 35. The bar’s audit determined that funds intended for the Belle Isle
Bayou real estate closing in the amount of $10,000.00 were deposited to respondent’s trust account maintained at Northern Trust Company July 16, 2014.
On July 23, 2014, respondent issued a wire transfer in the amount of $4,500.00 from the Northern Trust Company trust account to Lombardi & Associates, LLC.
On or around August 12, 2014, respondent transferred the remaining $5,500.00 balance to her Seaside Bank trust account. Respondent provided no explanation as to why funds pertaining to a commercial real estate closing were transferred from her Northern Trust Company trust account to the Seaside trust account for the benefit of Stoneybrook, an unrelated client matter.
36. On or around January 29, 2016, respondent issued a check for
$4,458.26 from her Seaside trust account, payable to Anderson Legal Group. The memo line referenced the matter 13413 Fox Glove Street and respondent testified during her August 1, 2018 sworn statement that this was a Stoneybrook matter.
The check cleared February 17, 2016. The disbursement was recorded in the ledger card for the 13413 Fox Glove Street matter, which had a balance of only
$751.18 before the payment. The disbursement resulted in a balance of -$3,707.08 in the ledger. There were insufficient funds in the ledger for respondent to use.
37. During her sworn statement on August 1, 2018, respondent testified under oath that she disbursed the funds in error and at the time believed they were
10 her fees. Respondent deposited the $4,458.26 into her Fairwinds Credit Union operating account where she used a portion of the funds to pay Attorney Closing
Services and American Express for what respondent described as business expenses. Without this deposit, respondent’s operating account would have had insufficient funds to make these payments.
38. On or around February 20, 2016, respondent issued a check from her
Seaside trust account for $2,112.00 payable to Anderson Legal Group. The memo line referenced the matter 2531 Balforn Tower. The check cleared March 1, 2016.
Respondent recorded the disbursement in the ledger card titled “Firm Funds” with the description “posted to 2531 in error.” The ledger card for 2531 Balforn Tower showed a balance of only $645.54 as of March 1, 2016. Therefore, there were insufficient funds in that ledger to support the payment. The Firm Funds ledger showed that after the $2,112.00 payment, the balance was -$3,729.03. Therefore, there were no funds available to respondent in that ledger either. Respondent deposited the $2,112.00 into her Fairwinds Credit Union operating account where she used a portion of the funds to pay her office rent.
Fairwinds Trust Account
39. In addition to the shortages in respondent’s Seaside trust account, the bar’s audit determined there were shortages in her trust account maintained at
11 Fairwinds Credit Union as well. Respondent utilized the Fairwinds Credit Union trust account for matters that were not related to Stoneybrook.
40. The bar’s audit revealed that there was a shortage of at least
$122,330.62 in respondent’s Fairwinds Credit Union trust account as of April 30,
2018. On that date, respondent should have been holding balances totaling
$242,570.18 for four matters. The bank balance on April 30, 2018, however, was only $120,239.56.
41. Respondent used client funds on deposit in her Fairwinds Credit
Union trust account, to which she was not entitled, for her own benefit, the benefit of others, or the benefit of her law firm.
42. In the first instance, on or around December 22, 2015, respondent wrote a check for $100,000.00 to her client Karamchand Doobay from the
Fairwinds Credit Union trust account. The check cleared December 23, 2015.
Respondent did not have any funds on deposit in this account related to Mr.
Doobay. As a result, respondent’s Fairwinds Credit Union trust account was short
$100,000.000 until Mr. Doobay returned the funds five days later. Respondent utilized funds pertaining to other, unrelated client matters, to pay Mr. Doobay.
43. Respondent testified during her sworn statement on August 1, 2018 that she pre-signed the check drawn on her Fairwinds Credit Union trust account that was made payable to Mr. Doobay prior to receiving the required
12 corresponding deposit, thus permitting a situation to exist whereby Mr. Doobay was able to obtain possession of the pre-signed check and deposit it prior to receipt of the wire deposit.
44. In the second instance, on July 15, 2016, a TD Bank official check in the amount of $32,000.00 was deposited into respondent’s Fairwinds Credit Union operating account despite the fact the check should have been deposited to respondent’s Fairwinds Credit Union trust account. The remitter was William
Murphy and the memo on the check read “For Settlement of Case No.: 2014-CA-
003174-O Full Payment.” The settlement was for respondent’s client, Andrea
Vogels.
45. Over the course of the next two months, respondent disbursed almost the entire amount of the settlement funds from the operating account. By
September 19, 2016, the balance in respondent’s Fairwinds Credit Union operating account was $194.31. Respondent utilized the settlement funds to pay Highwoods
Realty for office rent, herself, American Express, and Florida Lawyers Mutual.
46. On August 23, 2016, respondent disbursed $27,289.50 to Andrea
Vogels from her Fairwinds Credit Union trust account. The check memo referenced the Murphy settlement. Because respondent failed to deposit the settlement funds to her the Fairwinds Credit Union trust account, respondent used other clients’ funds to make the $27,289.50 payment to Ms. Vogels. During her
13 sworn statement on August 1, 2018, respondent acknowledged the payment created a shortage in her trust account and was unsure if she corrected this shortage.
47. In a third occurrence, on January 18, 2017, there was a $5,223.00 withdrawal from respondent’s Fairwinds Credit Union trust account and a deposit of the funds to respondent’s Fairwinds Credit Union operating account. The withdrawal was recorded in the ledger for the Gastro Intestinal Consultants of
Central FLA matter. Before the payment, the balance in the ledger was $0.00.
There were no funds available for respondent to use. After the payment, the balance in the ledger was -$5,223.00. In the Fairwinds Credit Union operating account, respondent issued a check for $5,075.00, dated January 9, 2017, to Perry
Wilson for reimbursement of a loan. The check cleared January 20, 2017.
Without the $5,223.00 from the trust account, respondent would have had insufficient funds in the operating account to cover the check to Mr. Wilson.
Respondent testified during her sworn statement on August 1, 2018 that Mr.
Wilson was a friend who gave her a loan several years ago.
48. On a fourth occasion, on February 23, 2017, respondent wired
$8,500.00 from her Fairwinds Credit Union trust account to the Anderson Hew operating account at Florida Community Bank. The wire transfer was recorded in the ledger for the Gastro Intestinal Consultants of Central FLA matter. Before the payment, the balance in the ledger was -$5,223.00. There were no funds available,
14 therefore, for respondent to use. After the payment, the balance in the ledger was
-$13,723.00. Thereafter, on February 22, 2017, respondent issued a check from the Florida Community Bank operating account for Anderson Hew in the amount of $8,128.97 to Highwoods for office rent. The check cleared February 24, 2017.
Without the $8,500.00 wire transfer from respondent’s Fairwinds Credit Union trust account, there would have been insufficient funds in the operating account to cover the check written to Highwoods for office rent.
49. In the above examples, respondent also commingled client funds from the Seaside trust account and the Fairwinds Credit Union trust account with operating account funds.
50. Respondent also failed to maintain her trust account at Fairwinds
Credit Union in compliance with the Rules Regulating The Florida Bar.
51. Numerous entries in the journal for Fairwinds Credit Union trust account failed to include the required client name and the reason for the transaction. Entries in the ledger cards for the Fairwinds Credit Union trust account did not consistently contain reasons for transactions. Respondent failed to provide and/or maintain all monthly reconciliations for the account, as required.
SunTrust Trust Account
52. Respondent maintained her trust account at SunTrust Bank for real estate closings. The bar’s audit of respondent’s SunTrust trust account determined
15 that, as of July 18, 2016, there was a shortage of at least $850.00 in her SunTrust trust account.
53. On September 29, 2015, respondent conducted a real estate closing in the account in which William Lenihan and Stacey Lenihan sold property at 1129
Maybrook Street, Apopka, Florida. In connection with the closing, respondent issued an official check for $5,788.22 to Bank of America, dated October 15, 2015, for one of Mr. Lenihan’s mortgage payoffs. The check was returned and deposited back into respondent’s SunTrust trust account on January 21, 2016. In her sworn statement on August 1, 2018, respondent testified that Bank of America returned the check because the bank believed the amount was insufficient to satisfy the mortgage. Respondent testified that she later was able to provide Bank of America with an estoppel letter confirming $5,788.22 was the correct amount.
54. Respondent should have held the $5,788.22 in her SunTrust trust account until she reissued the payoff. On July 18, 2016, however, respondent withdrew $3,000.00 cash from her SunTrust trust account, resulting in a balance of
$4,938.22. This balance was $850.00 less than what she was required have on deposit for Mr. Lenihian’s mortgage payoff. On November 15, 2016, respondent withdrew the remaining balance of $4,938.22 from the SunTrust trust account and used it to purchase another official check to Bank of America for the mortgage payoff in the amount of $5,788.22. The withdrawal slip showed that respondent
16 needed $850.00 cash in addition to the $4,938.22 to purchase the $5,788.22 payoff check.
Florida Community Bank Trust Account
55. Respondent also failed to maintain the Anderson Hew general trust account at Florida Community Bank in compliance with the Rules Regulating The
Florida Bar.
56. Respondent failed to properly maintain the journal because it failed to consistently identify the client for transactions and reasons for transactions.
Respondent also failed to properly maintain ledger cards for the Anderson Hew general trust account in substantial minimum compliance with the Rules
Regulating The Florida Bar. The ledger cards did not consistently contain reasons for transactions.
57. Additionally, the reconciled bank balance cards for the Anderson Hew general trust account did not match the journal balance as of February 28, 2018.
The reconciled bank balance was $54,858.60 and the journal balance was
$53,557.35. Further, the reconciled bank balance did not match journal balance as of March 31, 2018. The reconciled bank balance was $54,228.60 and the journal balance was $52,927.35.
58. Respondent certified on her annual membership fee statements for
2014-2015 to 2017-2018, pertaining to the trust account for the period July 1, 2013
17 to June 30, 2017, that she maintained her trust accounts in compliance with
Chapter 5 of the Rules Regulating The Florida Bar. In fact, respondent’s certifications were untrue for each year listed herein.
59. Respondent voluntarily attended and completed The Florida Bar’s
Trust Accounting Workshop on March 31, 2016.
60. Respondent knew or reasonably should have known that her certifications on her The Florida Bar annual membership fee statements were untrue.
61. Respondent failed to take the necessary steps to ensure her nonlawyer employees and/or independent contractor accountants maintained respondent’s various trust account in substantial minimum compliance with the Rules
Regulating The Florida Bar.
62. Respondent engaged in a course of conduct during the entire period to time encompassed by the bar’s audit where she routinely misappropriated client trust funds for her own benefit and/or for the benefit of her law office.
63. Wherefore, by reason of the foregoing, respondent has violated the following Rules Regulating The Florida Bar:
A. 3-4.3 The standards of professional conduct required of members of the bar are not limited to the observance of rules and avoidance of prohibited acts, and the enumeration of certain categories of misconduct as constituting grounds for
18 discipline are not all-inclusive nor is the failure to specify any particular act of misconduct be construed as tolerance of the act of misconduct. The commission by a lawyer of any act that is unlawful or contrary to honesty and justice may constitute a cause for discipline whether the act is committed in the course of the lawyer's relations as a lawyer or otherwise, whether committed within Florida or outside the state of Florida, and whether the act is a felony or a misdemeanor.
B. 4-1.3 A lawyer shall act with reasonable diligence and promptness in representing a client.
C. 4-1.4(a) A lawyer shall: (2) reasonably consult with the client about the means by which the client’s objectives are to be accomplished; (3) keep the client reasonably informed about the status of the matter; (4) promptly comply with reasonable requests for information.
D. 4-1.15 A lawyer shall comply with The Florida Bar Rules Regulating
Trust Accounts.
E. 4-1.16(d) Upon termination of representation, a lawyer shall take steps to the extent reasonably practicable to protect a client’s interest, such as giving reasonable notice to the client, allowing time for employment of other counsel, surrendering papers and property to which the client is entitled, and refunding any advance payment of fee or expense that has not been earned or
19 incurred. The lawyer may retain papers and other property relating to or belonging to the client to the extent permitted by law.
F. 4-5.3(b) (2006) With respect to a nonlawyer employed or retained by or associated with a lawyer or an authorized business entity as defined elsewhere in these Rules Regulating The Florida Bar: (1) a partner, and a lawyer who individually or together with other lawyers possesses comparable managerial authority in a law firm, shall make reasonable efforts to ensure that the firm has in effect measures giving reasonable assurance that the person's conduct is compatible with the professional obligations of the lawyer; (2) a lawyer having direct supervisory authority over the nonlawyer shall make reasonable efforts to ensure that the person's conduct is compatible with the professional obligations of the lawyer; and (3) a lawyer shall be responsible for conduct of such a person that would be a violation of the Rules of Professional Conduct if engaged in by a lawyer if: (A) the lawyer orders or, with the knowledge of the specific conduct, ratifies the conduct involved; or (B) the lawyer is a partner or has comparable managerial authority in the law firm in which the person is employed, or has direct supervisory authority over the person, and knows of the conduct at a time when its consequences can be avoided or mitigated but fails to take reasonable remedial action.
20 G. 4-5.3(b) (2015) With respect to a nonlawyer employed or retained by or associated with a lawyer or an authorized business entity as defined elsewhere in these Rules Regulating The Florida Bar: (1) a partner, and a lawyer who individually or together with other lawyers possesses comparable managerial authority in a law firm, must make reasonable efforts to ensure that the firm has in effect measures giving reasonable assurance that the person’s conduct is compatible with the professional obligations of the lawyer; (2) a lawyer having direct supervisory authority over the nonlawyer must make reasonable efforts to ensure that the person’s conduct is compatible with the professional obligations of the lawyer; and (3) a lawyer is responsible for conduct of such a person that would be a violation of the Rules of Professional Conduct if engaged in by a lawyer if the lawyer: (A) orders or, with the knowledge of the specific conduct, ratifies the conduct involved; or (B) is a partner or has comparable managerial authority in the law firm in which the person is employed, or has direct supervisory authority over the person, and knows of the conduct at a time when its consequences can be avoided or mitigated but fails to take reasonable remedial action.
H. 4-8.4(a) A lawyer shall not violate or attempt to violate the Rules of
Professional Conduct, knowingly assist or induce another to do so, or do so through the acts of another.
21 I. 4-8.4(c) A lawyer shall not engage in conduct involving dishonesty, fraud, deceit, or misrepresentation, except that it shall not be professional misconduct for a lawyer for a criminal law enforcement agency or regulatory agency to advise others about or to supervise another in an undercover investigation, unless prohibited by law or rule, and it shall not be professional misconduct for a lawyer employed in a capacity other than as a lawyer by a criminal law enforcement agency or regulatory agency to participate in an undercover investigation, unless prohibited by law or rule.
J. 5-1.1(a)(1) (2010) A lawyer shall hold in trust, separate from the lawyer’s own property, funds and property of clients or third persons that are in a lawyer’s possession in connection with a representation. All funds, including advances for fees, costs, and expenses, shall be kept in a separate bank or savings and loan association account maintained in the state where the lawyer’s office is situated or elsewhere with the consent of the client or third person and clearly labeled and designated as a trust account. A lawyer may maintain funds belonging to the lawyer in the trust account in an amount no more than is reasonably sufficient to pay bank charges relating to the trust account.
K. 5-1.1(a)(1) (2015) A lawyer must hold in trust, separate from the lawyer’s own property, funds and property of clients or third persons that are in a lawyer’s possession in connection with a representation. All funds, including
22 advances for fees, costs, and expenses, must be kept in a separate bank or savings and loan association account maintained in the state where the lawyer’s office is situated or elsewhere with the consent of the client or third person and clearly labeled and designated as a trust account except: (A) A lawyer may maintain funds belonging to the lawyer in the lawyer’s trust account in an amount no more than is reasonably sufficient to pay bank charges relating to the trust account; and
(B) A lawyer may deposit the lawyer’s own funds into trust to replenish a shortage in the lawyer’s trust account. Any deposits by the lawyer to cover trust account shortages must be no more than the amount of the trust account shortage, but may be less than the amount of the shortage. The lawyer must notify the bar’s lawyer regulation department immediately of the shortage in the lawyer’s trust account, the cause of the shortage, and the amount of the replenishment of the trust account by the lawyer.
L. 5-1.1(b) (2010) Money or other property entrusted to an attorney for a specific purpose, including advances for fees, costs, and expenses, is held in trust and must be applied only to that purpose. Money and other property of clients coming into the hands of an attorney are not subject to counterclaim or setoff for attorney’s fees, and a refusal to account for and deliver over such property upon demand shall be deemed a conversion.
23 M. 5-1.1(b) (2018) Money or other property entrusted to a lawyer for a specific purpose, including advances for fees, costs, and expenses, is held in trust and must be applied only to that purpose. Money and other property of clients coming into the hands of a lawyer are not subject to counterclaim or setoff for attorney’s fees, and a refusal to account for and deliver over the property on demand is conversion.
N. 5-1.1(e) (2010) Upon receiving funds or other property in which a client or third person has an interest, a lawyer shall promptly notify the client or third person. Except as stated in this rule or otherwise permitted by law or by agreement with the client, a lawyer shall promptly deliver to the client or third person any funds or other property that the client or third person is entitled to receive and, upon request by the client or third person, shall promptly render a full accounting regarding such property.
O. 5-1.1(g)(4) (2010) Lawyers or law firms shall advise the Foundation, at Post Office Box 1553, Orlando, Florida 32802–1553, of the establishment of an
IOTA account for funds covered by this rule. Such notice shall include: the IOTA account number as assigned by the eligible institution; the name of the lawyer or law firm on the IOTA account; the eligible institution name; the eligible institution address; and the name and Florida Bar attorney number of the lawyer, or of each
24 member of The Florida Bar in a law firm, practicing from an office or other business location within the state of Florida that has established the IOTA account.
P. 5-1.2(b) (2012) Records may be maintained in their original format or stored in digital media as long as the copies include all data contained in the original documents and may be produced when required. The following are the minimum trust accounting records that shall be maintained: (1) a separate bank or savings and loan association account or accounts in the name of the lawyer or law firm and clearly labeled and designated as a "trust account."; (2) original or clearly legible copies of deposit slips if the copies include all data on the originals and, in the case of currency or coin, an additional cash receipts book, clearly identifying: the date and source of all trust funds received and the client or matter for which the funds were received; (3) original canceled checks or clearly legible copies of original canceled checks for all funds disbursed from the trust account, all of which must: (A) be numbered consecutively, (B) include all endorsements and all other data and tracking information and (C) clearly identify the client or case by number or name in the memo area of the check; (4) other documentary support for all disbursements and transfers from the trust account, including records of all electronic transfers from client trust accounts, including: (A) the name of the person authorizing the transfer; (B) the name of the recipient; (C) confirmation from the banking institution confirming the number of the trust account from
25 which money is withdrawn; and (D) the date and time the transfer was completed;
(5) a separate cash receipts and disbursements journal, including columns for receipts, disbursements, transfers, and the account balance, and containing at least:
(A) the identification of the client or matter for which the funds were received, disbursed, or transferred; (B) the date on which all trust funds were received, disbursed, or transferred; (C) the check number for all disbursements; and (D) the reason for which all trust funds were received, disbursed, or transferred; (6) a separate file or ledger with an individual card or page for each client or matter, showing all individual receipts, disbursements, or transfers and any unexpended balance, and containing: (A) the identification of the client or matter for which trust funds were received, disbursed, or transferred; (B) the date on which all trust funds were received, disbursed, or transferred; (C) the check number for all disbursements; and (D) the reason for which all trust funds were received, disbursed, or transferred; and (7) all bank or savings and loan association statements for all trust accounts.
Q. 5-1.2(b) (2014) Records may be maintained in their original format or stored in digital media as long as the copies include all data contained in the original documents and may be produced when required. The following are the minimum trust accounting records that must be maintained: (1) a separate bank or savings and loan association account or accounts in the name of the lawyer or law
26 firm and clearly labeled and designated as a "trust account"; (2) original or clearly legible copies of deposit slips if the copies include all data on the originals and, in the case of currency or coin, an additional cash receipts book, clearly identifying the date and source of all trust funds received and the client or matter for which the funds were received; (3) original canceled checks or clearly legible copies of original canceled checks for all funds disbursed from the trust account, all of which must: (A) be numbered consecutively; (B) include all endorsements and all other data and tracking information; and (C) clearly identify the client or case by number or name in the memo area of the check; (4) other documentary support for all disbursements and transfers from the trust account including records of all electronic transfers from client trust accounts, including: (A) the name of the person authorizing the transfer; (B) the name of the recipient; (C) confirmation from the banking institution confirming the number of the trust account from which money is withdrawn; and (D) the date and time the transfer was completed;
(5) original or clearly legible digital copies of all records regarding all wire transfers into or out of the trust account, which at a minimum must include the receiving and sending financial institutions’ ABA routing numbers and names, and the receiving and sending account holder’s name, address and account number. If the receiving financial institution processes through a correspondent or intermediary bank, then the records must include the ABA routing number and
27 name for the intermediary bank. The wire transfer information must also include the name of the client or matter for which the funds were transferred or received, and the purpose of the wire transfer, (e.g., “payment on invoice 1234” or “John
Doe closing”). (6) a separate cash receipts and disbursements journal, including columns for receipts, disbursements, transfers, and the account balance, and containing at least: (A) the identification of the client or matter for which the funds were received, disbursed, or transferred; (B) the date on which all trust funds were received, disbursed, or transferred; (C) the check number for all disbursements; and (D) the reason for which all trust funds were received, disbursed, or transferred; (7) a separate file or ledger with an individual card or page for each client or matter, showing all individual receipts, disbursements, or transfers and any unexpended balance, and containing: (A) the identification of the client or matter for which trust funds were received, disbursed, or transferred; (B) the date on which all trust funds were received, disbursed, or transferred; (C) the check number for all disbursements; and (D) the reason for which all trust funds were received, disbursed, or transferred; and (8) all bank or savings and loan association statements for all trust accounts.
R. 5-1.2(c) (2010) The minimum trust accounting procedures that shall be followed by all members of The Florida Bar (when a choice of laws analysis indicates that the laws of Florida apply) who receive or disburse trust money or
28 property are as follows: (1) The lawyer shall cause to be made monthly: (A) reconciliations of all trust bank or savings and loan association accounts, disclosing the balance per bank, deposits in transit, outstanding checks identified by date and check number, and any other items necessary to reconcile the balance per bank with the balance per the checkbook and the cash receipts and disbursements journal; and (B) a comparison between the total of the reconciled balances of all trust accounts and the total of the trust ledger cards or pages, together with specific descriptions of any differences between the 2 totals and reasons therefor. (2) At least annually, the lawyer shall prepare a detailed listing identifying the balance of the unexpended trust money held for each client or matter. (3) The above reconciliations, comparisons, and listings shall be retained for at least 6 years. (4) The lawyer or law firm shall authorize, at the time the account is opened, and request any bank or savings and loan association where the lawyer is a signatory on a trust account to notify Staff Counsel, The Florida Bar,
651 East Jefferson Street, Tallahassee, Florida 32399-2300, in the event the account is overdrawn or any trust check is dishonored or returned due to insufficient funds or uncollected funds, absent bank error. (5) The lawyer shall file with The Florida Bar between June 1 and August 15 of each year a trust accounting certificate showing compliance with these rules on a form approved by the board of governors.
29 S. 5-1.2(d) (2014) The minimum trust accounting procedures that must be followed by all members of The Florida Bar (when a choice of laws analysis indicates that the laws of Florida apply) who receive or disburse trust money or property are as follows: (1) The lawyer is required to make monthly: (A) reconciliations of all trust bank or savings and loan association accounts, disclosing the balance per bank, deposits in transit, outstanding checks identified by date and check number, and any other items necessary to reconcile the balance per bank with the balance per the checkbook and the cash receipts and disbursements journal; and (B) a comparison between the total of the reconciled balances of all trust accounts and the total of the trust ledger cards or pages, together with specific descriptions of any differences between the 2 totals and reasons for the differences. (2) The lawyer is required to prepare an annual detailed list identifying the balance of the unexpended trust money held for each client or matter. (3) The above reconciliations, comparisons, and listings must be retained for at least 6 years. (4) The lawyer or law firm must authorize, at the time the account is opened, and request any bank or savings and loan association where the lawyer is a signatory on a trust account to notify Staff Counsel, The Florida Bar,
651 East Jefferson Street, Tallahassee, Florida 32399-2300, in the event the account is overdrawn or any trust check is dishonored or returned due to insufficient funds or uncollected funds, absent bank error. (5) The lawyer must file
30 with The Florida Bar between June 1 and August 15 of each year a trust accounting certificate showing compliance with these rules on a form approved by the board of governors. If the lawyer fails to file the trust accounting certificate, the lawyer will be deemed a delinquent member and ineligible to practice law.
T. 5-1.2(d) (2015) The minimum trust accounting procedures that must be followed by all members of The Florida Bar (when a choice of laws analysis indicates that the laws of Florida apply) who receive or disburse trust money or property are as follows: (1) The lawyer is required to make monthly: (A) reconciliations of all trust bank or savings and loan association accounts, disclosing the balance per bank, deposits in transit, outstanding checks identified by date and check number, and any other items necessary to reconcile the balance per bank with the balance per the checkbook and the cash receipts and disbursements journal; and (B) a comparison between the total of the reconciled balances of all trust accounts and the total of the trust ledger cards or pages, together with specific descriptions of any differences between the 2 totals and reasons for these differences. (2) The lawyer is required to prepare an annual detailed list identifying the balance of the unexpended trust money held for each client or matter. (3) The above reconciliations, comparisons, and listings must be retained for at least 6 years. (4) The lawyer or law firm must authorize, at the time the account is opened, and request any bank or savings and loan association where
31 the lawyer is a signatory on a trust account to notify Staff Counsel, The Florida
Bar, 651 East Jefferson Street, Tallahassee, Florida 32399-2300, in the event the account is overdrawn or any trust check is dishonored or returned due to insufficient funds or uncollected funds, absent bank error. (5) The lawyer must file with The Florida Bar between June 1 and August 15 of each year a trust accounting certificate showing compliance with these rules on a form approved by the board of governors. If the lawyer fails to file the trust accounting certificate, the lawyer will be deemed a delinquent member and ineligible to practice law.
WHEREFORE, based on the aforementioned facts, the bar asserts the respondent has caused, or is likely to cause, immediate and serious harm to clients and/or the public and that immediate action must be taken for the protection of the respondent's clients and the public. Therefore, pursuant to R. Regulating Fla. Bar
3-5.2, The Florida Bar respectfully requests this court to:
A. Suspend respondent from the practice of law until further order of this court.
B. Order respondent to accept no new clients from the date of this
Court's order and to cease representing any clients after 30 days from the date of this Court's order. Within the 30 days from the date of this Court’s order, respondent shall wind down all pending matters and shall not initiate any litigation on behalf of clients. Respondent shall withdraw from all representation within 30
32 days from the date of this Court’s order. In addition, respondent shall cease acting as personal representative for any estate, as guardian for any ward, and as trustee for any trust and will withdraw from said representation within thirty days from the date of this court’s order and will immediately turn over to any successor the complete financial records of any estate, guardianship or trust upon the successor’s appointment.
C. Order respondent to furnish a copy of the suspension order to all clients, opposing counsel and courts before which Elizabeth Jayne Anderson is counsel of record as required by Rule 3-5.1(h) of the Rules of Discipline of The
Florida Bar and to furnish Staff Counsel with the requisite affidavit listing all clients, opposing counsel and courts so informed within 30 days after receipt of the court's order.
D. Order respondent to refrain from withdrawing or disbursing any money from any trust account related to respondent's law practice until further order of this court, a judicial referee appointed by this court or by order of the
Circuit Court in an inventory attorney proceeding instituted under R. Regulating
Fla. Bar 1-3.8, and to deposit any fees, or other sums received in connection with the practice of law or in connection with the respondent’s employment as a personal representative, guardian or trustee, paid to the respondent after issuance of this Court's order of emergency suspension, into a specified trust account from
33 which withdrawal may only be made in accordance with restrictions imposed by this Court. Further, respondent shall be required to notify bar counsel of The
Florida Bar of the receipt and location of said funds within 30 days of the order of emergency suspension.
E. Order respondent to not withdraw any money from any trust account or other financial institution account related to respondent's law practice or transfer any ownership of any real or personal property purchased in whole or in part with funds properly belonging to clients, probate estates for which respondent served as personal representative, guardianship estates for which respondent served as guardian, and trusts for which respondent served as trustee without approval of this court, a judicial referee appointed by this court or by order of the Circuit Court in an inventory attorney proceeding instituted under R. Regulating Fla. Bar 1-3.8.
F. Order respondent to notify, in writing, all banks and financial institutions where the respondent maintains an account related to the practice of law, or related to services rendered as a personal representative of an estate, or related to services rendered as a guardian, or related to services rendered as a trustee, or where respondent maintains an account that contains funds that originated from a probate estate for which respondent was personal representative, guardianship estate for which respondent was guardian, or trust for which respondent was trustee, of the provisions of this Court's order and to provide all the
34 aforementioned banks and financial institutions with a copy of this Court's order.
Further, respondent shall be required to provide Bar Counsel with an affidavit listing each bank or financial institution respondent provided with a copy of said order.
G. Order respondent to immediately comply with and provide all documents and testimony responsive to a subpoena from The Florida Bar for trust account records and any related documents necessary for completion of a trust account audit to be conducted by The Florida Bar.
H. And further to authorize any Referee appointed in these proceedings to determine entitlement to funds in any trust account(s) frozen as a result of an Order entered in this matter.
Respectfully submitted,
Carrie Constance Lee, Bar Counsel The Florida Bar Orlando Branch Office The Gateway Center 1000 Legion Place, Suite 1625 Orlando, Florida 32801-1050 (407) 425-5424 Florida Bar No. 552011 [email protected] [email protected]
35
ADRIA E. QUINTELA Staff Counsel The Florida Bar Lakeshore Plaza II, Suite 130 1300 Concord Terrace Sunrise, Florida 33323 (954) 835-0233 Florida Bar No. 897000 [email protected]
/s/ Joshua E. Doyle JOSHUA E. DOYLE Executive Director The Florida Bar 651 East Jefferson Street Tallahassee, Florida 32399-2300 (850) 561-5600 Florida Bar No. 25902 [email protected]
36 CERTIFICATE OF SERVICE
I certify that this document has been e-filed with The Honorable John A. Tomasino, Clerk of the Supreme Court of Florida, with a copy provided via email to Respondent's Counsel, Warren William Lindsey, at [email protected]; and that a copy has been furnished by United States Mail via certified mail No. 7017 1450 0001 4287 3941, return receipt requested to Respondent's Counsel, Warren William Lindsey, whose record bar address is Lindsey & Ferry, P.A., 1150 Louisiana Avenue, Suite 2, Winter Park, Florida 32789-2354 and via email to Carrie Constance Lee, Bar Counsel, 1000 Legion Place, Suite 1625, Orlando, Florida 32801 at [email protected], [email protected], on this 3rd day of October, 2018.
ADRIA E. QUINTELA Staff Counsel The Florida Bar Lakeshore Plaza II, Suite 130 1300 Concord Terrace Sunrise, Florida 33323 (954) 835-0233 Florida Bar No. 897000 [email protected]
37 NOTICE OF DESIGNATION OF PRIMARY EMAIL ADDRESS
PLEASE TAKE NOTICE that bar counsel in this matter is Carrie Constance Lee, Bar Counsel, whose address, telephone number and primary email address are The Florida Bar, Orlando Branch Office, The Gateway Center, 1000 Legion Place, Suite 1625, Orlando, Florida 32801-1050, (407) 425-5424 and [email protected], [email protected]. Respondent need not address pleadings, correspondence, etc. in this matter to anyone other than bar counsel and to Adria E. Quintela, Staff Counsel, The Florida Bar, Lakeshore Plaza II, Suite 130, 1300 Concord Terrace, Sunrise, Florida 33323, [email protected].
38 MANDATORY ANSWER NOTICE
RULE 3-5.2(a), RULES OF DISCIPLINE, EFFECTIVE JULY 1, 2012, 2004, PROVIDES THAT A RESPONDENT SHALL ANSWER A COMPLAINT.
39 STATE OF FLORIDA COUNTY OF ORANGE
AFFIDAVIT
I, Matthew D. Herdeker, after being duly sw01n, say:
1. I have been an auditor with The Florida Bar, located at 1000 Legion
Place, Suite 1625, Orlando, Florida 32801, since January 2012. My duties include conducting compliance audits of attorneys' trust accounts, investigating allegations of misappropriations from trust accounts, preparing written reports of audit findings, and testifying. I have been qualified as an expert witness in trust accounting matters in bar disciplinary proceedings.
2. I am a Ce1iified Public Accountant (CPA), Certified Internal Auditor
(CIA), and Certified Fraud Examiner (CFE). I am also Certified in Financial
Forensics (CFF) with the AICPA.
3. I conducted an audit of respondent's trust accounts after the bar received a complaint against her by members of the Stoneybrook West Master
Association, Inc. ("Stoneybrook") on December 28, 2017. Stoneybrook hired respondent in December 2013 to perform various legal services, including the collection of delinquent association fees from homeowners.
4. The complainants generally alleged that respondent did not provide timely accountings of the fees she collected and did little or no work on files. They also alleged her trust account records were incomplete and inaccurate, and believed
EXHIBIT A there was approximately $14,000 missing from the trust account.
5. Pursuant to a subpoena served April 23, 2018, the bar directed respondent to provide trust account records The Rules Regulating The Florida Bar required her to maintain for the audit period December 2013 to April 2018.
6. The bar also issued subpoenas to five financial institutions at which respondent held seven trust accounts: Fairwinds Credit Union, Florida Community
Bank, Northern Trust Co., Seaside National Bank & Trust, and SunTrust Ban1c
The subpoenas directed the institutions to provide ban1c records for respondent's trust and operating accounts for the audit period December 2013 to April 2018.
7. I reviewed the records respondent, the credit union, and the ban1cs provided as pa1i of my audit.
8. As part ofthe audit, I also attended respondent's sworn statement at the bar on August 1, 2018.
Seaside National Bank Trust Account
9. Respondent used a trust account at Seaside National Ban1c & Trust to collect payments related to the Stoneybrook matter.
10. During the audit period, respondent used client funds in the account, to which she was not entitled, for her own benefit or the benefit of her firm.
11. For example, on or around January 12, 2015, respondent issued a check for $10,000.00 from the account, payable to Anderson Legal Group. The
2 memo line was blank. The check cleared on January 13, 2015.
12. The check was recorded in the ledger card for the "Belle Isle Bayou" matter, which had a balance of -$5,579.84 before the payment. The $10,000.00 payment increased the negative balance to -$15,579.84. There were no funds available, therefore, from the Belle Isle Bayou matter for respondent to use.
13. The $10,000.00 was deposited into respondent's Fairwinds Credit
Union operating account. In the operating account, respondent used a portion of the funds to make a payment to American Express for what she described as business expenses, to Navient for her student loan payment, and to an employee for payroll.
14. As another example, on or around January 29, 2016, respondent issued a check for $4,458.26 from the Seaside trust account, payable to Anderson
Legal Group. The memo line referenced the matter "13413 Fox Glove." The check cleared February 17, 2016.
15. The disbursement was recorded in the ledger card for the 13413 Fox
Glove Street matter, which had a balance of only $7 51.18 before the payment. The disbursement resulted in a balance of -$3,707.08 in the ledger. There were insufficient funds in the ledger, therefore, for respondent to use.
16. Respondent deposited the $4,458.26 into her Fairwinds Credit Union operating account. In the operating account, she used a portion of the funds to pay
3 Attorney Closing Services and American Express for what she described as business expenses.
17. As another example, on or around February 20, 2016, respondent issued a check for $2,112.00 payable to Anderson Legal Group. The memo line referenced the matter "2531 Balforn." The check cleared March 1, 2016.
18. The disbursement was recorded in a ledger card titled "Firm Funds," which had a balance of -$1,617.03 before the payment. The disbursement of
$2,112.00 increased the negative balance to -$3,729.03. There were no funds available, therefore, in the Firm Funds ledger for respondent to use.
19. There were also insufficient funds in the ledger card for the 2531
Balforn Tower matter for respondent to use. As ofFebruary 20, 2016, the balance in that ledger was only $645.54.
20. Respondent deposited the $2,112.00 into her Fairwinds Credit Union operating account. In the operating account, she used a portion of the funds to pay office rent.
21. As of February 23, 2018, there was a shortage of roughly $37,000.00 in the Seaside trust account.
22. On Feb1uary 23, 2018, the beginning balance in the Seaside trust account was $1,543.54. That day, respondent deposited $37,000.00 into the trust account from her parents. The ending daily balance in the account was $38,543.54.
4 23. On February 27, 2018, respondent used the funds from her parents to wire $37,870.03 to Neil A. Saydah, P.A., the new attorney who represented
Stoneybrook. Respondent's ledger cards showed the payment was for balances totaling $50,309.04 she owed to Stoneybrook in 30 matters, offset by overpayments to Stoneybrook totaling $12,439.01 in 16 matters.
24. Respondent acknowledged the shortage in her sworn statement. She also stated she would not have been able to pay the balances she owed to
Stoneybrook without the funds from her parents or funds from her 40l(k) if they had not given her the money. She explained the reason the account was short was because some deposits which should have been placed in the trust account were mistakenly placed in her Fairwinds operating account and were no longer available.
25. From May 1, 2017 to February 27, 2018, the ending daily balance in respondent's Fairwinds operating account ranged from -$105.00 to $366.41.
26. Respondent did not notify the bar ofthe sh01iage despite being required to do so by Chapter 5 of the Rules Regulating The Florida Bar.
Fairwinds Credit Union Trust Account
27. Respondent opened a trust account at Fairwinds Credit Union before
December 2013 and generally used it for non-Stoneybrook matters.
28. The Rules Regulating The Florida Bar did not permit attorneys to
5 maintain a trust account at a credit union before February 2018.
29. Respondent used client funds in the account, to which she was not entitled, for her own benefit, the benefit ofher firm, or the benefit of others.
30. For example, on or around December 22, 2015, respondent wrote a check for $100,000.00 to her client Karamchand Doobay. The check cleared
December 23, 2015.
31. Respondent did not hold any funds in the account for Mr. Doobay.
The payment, therefore, caused a shortage in the trust account. Respondent acknowledged in her sworn statement that the $100,000.00 payment caused the shortage.
32. Respondent explained that Mr. Doobay or another individual told her she would be receiving a wire into the trust account for Mr. Doobay's benefit related to a loan or a real estate matter. Respondent maintained she pre-signed the
$100,000.00 check in anticipation of receiving that wire.
3 3. Respondent further explained that Mr. Doobay came to her office while she was away, found the check, and took it and cashed it without her perm1ss10n.
34. On December 28, 2015, respondent deposited a cashier's check from
Karamchand Doobay in the amount of $100,000.00 into the Fairwinds trust account to correct the sho1iage.
6 35. Respondent stated in her sworn statement that she should have called the police, but did not because Mr. Doobay was a client and "it would have just made it worse."
36. Respondent did not notify the bar ofthe shortage despite being required to do so by Chapter 5 of the Rules Regulating The Florida Bar.
37. As another example, on July 15, 2016, a TD Bank official check in the amount of $32,000.00 was deposited into the Fairwinds Credit Union operating account. The funds were from a settlement for respondent's client, Andrea Vogels.
38. In correspondence and in her sworn statement, respondent explained that the settlement check was mistakenly deposited into the operating account instead ofthe tiust account.
39. Over the next two months, respondent disbursed almost the entire amount of the settlement funds from the operating account. By September 19,
2016, the balance in the Fairwinds operating account was $194.31.
40. Respondent spent the funds on payments to herself, American
Express, Florida Lawyers Mutual, and Highwoods Realty for office rent.
41. On August 23, 2016, respondent disbursed settlement proceeds of
$27,289.50 to Ms. Vogels from the Fairwinds Credit Union trust account.
42. Since she never placed the settlement funds in the Fairwinds Credit
Union trust account, respondent used other clients' funds to make the $27,289.50
7 payment to Ms. Vogels.
43. In her sworn statement, respondent acknowledged the payment created a sh01iage in the tlust account. She stated she was unsure if she replaced the money in the trust account.
44. As another example, on January 18, 2017, $5,223.00 was withdrawn from the Fairwinds Credit Union trust account and deposited into the Fairwinds
Credit Union operating account.
45. The withdrawal was recorded to the ledger for the "Gastro Intestinal
Consultants of Central FLA" matter. Before the payment, the balance in the ledger was $0.00. After the payment, the balance in the ledger was -$5,223.00. There were no funds available in the ledger, therefore, for respondent to use.
46. In the Fairwinds Credit Union operating account, respondent issued a check for $5,075.00, dated January 9, 2017, to Perry Wilson for reimbursement of a loan. The check cleared January 20, 2017. Without the $5,223.00 from the trust account, there would have been insufficient funds in the operating account to cover that check.
47. As another example, on February 23, 2017, respondent wired
$8,500.00 from the Fairwinds Credit Union trust account to an operating account at
Florida Community Bank.
48. The wire was recorded to the ledger for the Gastro Intestinal
8 Consultants of Central FLA matter. Before the payment, the balance in the ledger was -$5,223.00. After the payment, the balance in the ledger was -$13,723.00.
There were no funds available in the ledger, therefore, for respondent to use.
49. In the Florida Community Bank operating account, respondent issued a check for $8,128.97, dated February 22, 2017, to Highwoods for office rent. The check cleared February 24, 2017. Without the $8,500.00 wire from her Fairwinds
Credit Union t1ust account, there would have been insufficient funds in the operating account to cover that check.
50. As of April 30, 2018, there was a shortage of at least $122,330.62 in the Fairwinds Credit Union trust account.
51. On that date, respondent should have been holding balances in the account totaling at least $242,570.18 for four matters. The bank balance on April
30, 2018, however, was only $120,239.56.
SunTrust Trust Account
52. Respondent used a trust account at SunTrust to conduct real estate closings.
53. Respondent used funds in the account intended for a mortgage payoff from a real estate closing for another purpose.
9 54. On or around September 29, 2015, respondent conducted a real estate closing in the account for the sale ofproperty on Maybrook Street in Apopka,
Florida.
55. In the closing, respondent issued an official check for $5,788.22 to
Bank of America, dated October 15, 2015, for one of the sellers' mmigage payoffs.
56. The check was returned and deposited back into the SunTrust trust account on January 21, 2016. In her sworn statement, respondent explained that
Bank of America returned the check because the bank believed the amount was insufficient to satisfy the mmigage.
57. Respondent should have held the $5,788.22 in the trust account until she reissued the payoff.
58. On July 18, 2016, respondent withdrew $3,000.00 cash from the account, resulting in a balance of $4,938.22. This balance was $850.00 less than what she was required to be holding for the sellers' payoff ($4,938.22 - $5,788.22
= -$850.00).
59. On November 15, 2016, respondent withdrew the remaining balance of $4,938.22 from the SunTrust trust account and used it to purchase another official check to Bank of America for the mortgage payoff in the amount of
$5,788.22.
10 60. The withdrawal slip showed that respondent needed $850.00 cash in addition to the $4,938.22 to purchase the $5,788.22 payoff check.
Commingling
61. In some of the above examples, respondent commingled client funds from the Seaside trust account and the Fairwinds Credit Union trust account with operating funds.
Trust Accounting Records and Procedures
62. Respondent did not maintain trust accounting records and perform trust accounting procedures in substantial compliance with the requirements of
Rule 5-1.2.
63. She did not clearly label the Seaside trust account as a "trust account."
64. She did not provide the backs of canceled checks for the Seaside trust account.
65. Numerous entries in respondent's journals for the Fairwinds Credit
Union trust account, Seaside trust account, and the Florida Community Bank general trust account did not identify the client and contain a reason for the transaction.
66. Entries in the ledger cards for the Fairwinds Credit Union, Seaside trust account, and Florida Community Bank general trust account did not consistently contain reasons for transactions.
11 67. In the Seaside trust account, the July 2014 and December 2014 reconciliations did not identify outstanding checks by date and check number.
68. For the Fairwinds Credit Union trust account, respondent did not provide complete reconciliations. Two months were missing for 2014, five months were missing for 2015, eleven months were missing for 2017, and four months were missing for 2018.
69. In the Florida Community Bank general trust account, the reconciled bank balance did not match the journal balance as of February 28, 2018 and March
31, 2018.
70. Respondent did not provide monthly comparisons for the Seaside trust account.
Compliance Certification
71. Respondent served as a member of the bar's 9C Grievance Committee from July 1, 2013 through June 30, 2016.
72. As a grievance committee member, respondent voluntarily attended a
Trust Accounting Workshop I taught at the bar on March 31, 2016.
73. During the two- to three-hour presentation, I covered topics such as misappropriations from trust accounts, trust account shortages, negative ledger balances, commingling, reconciliations, monthly comparisons, maintaining the backs of canceled checks, labeling a trust account, and how to prepare records in
12 compliance with the trust accounting 1ules. I provided respondent with a copy of the Rules Regulating The Florida Bar pertaining to trust accounts, sample trust records, and a workbook covering trust accounting topics.
74. Respondent certified on her four annual membership fee statements for 2014-2015 to 2017-2018 (pertaining to the trust account for the period July 1,
2013 to June 30, 2017) that she was in compliance with Chapter 5 ofthe Rules
Regulating The Florida Bar.
75. Respondent submitted the fee statements for 2016-2017 and 2017
2018 after she attended the Tiust Accounting Workshop.
Opinion
76. It is my professional opinion that respondent was not in substantial compliance with the bar's rules governing trust accounts.
77. It is also my professional opinion that respondent misappropriated client funds and used them for her own benefit, the benefit ofher firm, or the benefit of others.
FURTHER AFFIANT SAYETH NOT.
MATTHEW D. HERDEKER
SWORN TO AND SUBSCRIBED before me this .2/+hday of September, 2018. ~ · ELIZABETH TEBO Notary Public Commission# GG 97168 My Commission Expires Aprll 24, 2021 13 Print, type, or stamp commission name of notary public
,/ Personally known to me ____ Produced the following identification Type of Identification produced: ______
14 IN THE SUPREME COURT OF FLORIDA (Before a Grievance Committee)
IN RE: A Confidential Proceeding by The Florida Bar Under the Rules of Discipline
TFB File No. 201830,452(09D)
"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
SWORN STATEMENT OF ELIZABETH JAYNE ANDERSON
Before RITA M. MOTT, CVR On Wednesday, August 1, 2018 At 1:30 p.m. Offices of The Florida Bar 1000 Legion Place, Suite 1625 Orlando, Florida 328011050 Transcription requested by: Carrie Constance Lee, Bar Counsel
Reporter: Rita M. Mott, CVRM 1901 Hinckley Road Orlando, Florida 32818 (407) 2951186
EXHIBIT B Page 2
APPEARANCES: Carrie Constance Lee, Bar Counsel Laura N. Gryb, Bar Counsel The Florida Bar 1000 Legion Place, Suite 1625 Orlando, Florida 328011050
Warren William Lindsey Respondent’s Counsel 1150 Louisiana Avenue, Suite 2 Winter Park, Florida 327892354
ALSO PRESENT: Matt Herdeker, Auditor The Florida Bar Page 3
TABLE OF CONTENTS TRANSCRIPT OF PROCEEDINGS TESTIMONY OF ELIZABETH JAYNE ANDERSON: Examination by Ms. Lee ...... 5
ERRATA SHEET...... 91 SUBSCRIPTION OF DEPONENT...... 92 CERTIFICATE OF OATH ...... 93 CERTIFICATE OF REPORTER ...... 94
INDEX OF EXHIBITS The Florida Bar’s Composite Exhibit No. 1 ...... 14 Signature cards for accounts at Florida Community Bank, Northern Trust, Seaside National Bank & Trust, Fairwinds Credit Union, and SunTrust The Florida Bar’s Composite Exhibit No. 2 ...... 16 Florida Bar Foundation Account Verification for The Anderson Legal Group and Hew Law, PLLC The Florida Bar’s Exhibit No. 3 ...... 21 Email letter dated February 23, 2018, to Neil Saydah, Esquire, from Elizabeth Anderson The Florida Bar’s Exhibit No. 4 ...... 24 Contractual Agreement for Legal Services for Stoneybrook dated 12/16/13, The Anderson Legal Group, LLC The Florida Bar’s Composite Exhibit No. 5 ...... 30 Statement dated February 28, 2018, from Seaside National Bank & Trust, with attachments The Florida Bar’s Composite Exhibit No. 6 ...... 36 ALG Trust Accounts Liabilities: IncBelle Isle Bayou, ending balance $0.00, with attachments
The Florida Bar’s Composite Exhibit No. 7 ...... 47 ALG Trust Accounts Liabilities: Inc13413 Fox Glove, ending balance $0.00, with attachments Page 4
INDEX OF EXHIBITS (continued)
The Florida Bar’s Composite Exhibit No. 8 ...... 51 ALG Trust Accounts Liabilities: Firm Funds, ending balance $392.57, with attachments The Florida Bar’s Composite Exhibit No. 9 ...... 60 Statement dated 07/01/2016 to 07/31/2016 from Fairwinds Credit Union, with attachments The Florida Bar’s Composite Exhibit No. 10...... 65 The Anderson Legal Group, LLC, Client Trust Account 0174 Gastro Intestinal Consultants of Central Fla LC, with attachments The Florida Bar’s Exhibit No. 11...... 71 The Anderson Legal Group, LLC, Client Trust Account 0174:12511 El Viento, ending balance $126,198.53, with attachments
The Florida Bar’s Exhibit No. 12...... 76 Warranty Deed, File No. 150406, with attachments The Florida Bar’s Exhibit No. 13...... 41 The Anderson Legal Group, LLC, Client Trust Account 0174: Doobay, Karamchand, ending balance $0.00, with attachments The Florida Bar’s Exhibit No. 14...... 80 The Anderson Legal Group, LLC, Client Suntrust IOLTA Trust Acct 5938:1129 Maybrook (Sun Trust), ending balance $5,937.46, with attachments The Florida Bar’s Exhibit No. 15...... 85 Photocopy of front and back of Check Nos. 3484 and 4205 The Florida Bar’s Composite Exhibit No. 16...... 87 The Florida Bar Annual Membership Fee Statement for Elizabeth Jayne Anderson, with attachments Page 5
1 FOR YOUR INFORMATION 2 Within this transcript: 3 “” at the end of a question or answer indicates an 4 interruption; 5 “. . .” indicates a trailoff by the speaker; 6 “Uhhuh” or “umhmm” indicates an affirmative sound; 7 “Huhuh” or “hmmmm” indicates a negative sound. 8 * * * * * * * * * 9 PROCEEDINGS 10 August 1, 2018 1:30 p.m. 11 WHEREUPON: 12 (Having been administered the oath by the court 13 reporter, Ms. Anderson’s response to that oath follows.) 14 MS. ANDERSON: Yes. 15 MS. LEE: My name is Carrie Lee. I am Bar 16 counsel with The Florida Bar. We are here in file 17 matter 201830,452. This is currently assigned to the 18 9D grievance committee. 19 Also present on behalf of the Bar is Matt 20 Herdeker, Bar auditor, and Laura Gryb, also Bar counsel 21 with The Florida Bar. 22 WHEREUPON: 23 ELIZABETH JAYNE ANDERSON 24 the respondent herein, was called as a witness, and, having 25 been duly sworn by the court reporter, was examined, and Page 6
1 testified as follows: 2 EXAMINATION 3 BY MS. LEE: 4 Q Can you state your name for the record, please. 5 A Elizabeth Jayne Anderson. 6 Q Okay. And who do you have present with you 7 today? 8 A My attorney, Warren Lindsey. 9 MS. LEE: Mr. Lindsey, you want to state your 10 full name for the record? 11 MR. LINDSEY: Yes. I’ll be glad to. My name is 12 Warren Lindsey, Lindsey. 13 BY MS. LEE: 14 Q Ms. Anderson, can you state your full name again 15 for the record, please. 16 A Elizabeth Jayne, Jayne, Anderson. 17 Q And have you ever gone by any other names other 18 than Anderson? 19 A Liz. 20 No. Just . . . 21 Q Okay. And where did you attend law school? 22 A Stetson. 23 Q And what year did you graduate? 24 A December 2002. 25 Q And when were you admitted into the Florida bar? Page 7
1 A April the following year, after the February bar. 2 Q So that would have been 2003? 3 A Yes. 4 Q Okay. And are you admitted in any other bars? 5 A Just the U.S. District 6 Q Okay. 7 A of Florida. 8 Q The Middle District? 9 A The Middle, Southern, and Northern. 10 Q Okay. And are those memberships active? 11 A Yes. 12 Q And what primarily type of law do you practice? 13 A I do real estate and bankruptcy. 14 Q And we have a lot to go over, so if at any point 15 you need a break or need to, you know, step out of the room, 16 just let me know, we can take a break. 17 A Okay. 18 Q Have you ever been the subject of any pending 19 criminal litigation? 20 A No. 21 Q Have you ever been the subject of any pending 22 civil litigation? 23 A I was a plaintiff at one point, in civil 24 litigation. 25 Q Okay. Have you ever been a named defendant in Page 8
1 any kind of civil litigation against you personally? 2 A No. 3 Q Do you have any tax liens? 4 A Not that I’m aware of, no. 5 Q Can you please tell me, since your admission into 6 the Florida bar in April of 2003, where you first began to 7 work. 8 A While I was studying for the bar, I was at a firm 9 of Trentalange & Kelley. 10 Q Can you spell that for me? 11 A I can write it. 12 MR. LINDSEY: You can probably research it even 13 on your computer if you need to write it? 14 MS. ANDERSON: Yeah. 15 MR. LINDSEY: Okay. So apologize. 16 MR. ANDERSON: Thanks. 17 It’s one of those things. I believe it is 18 Trentalange. Trentalange. 19 BY MS. LEE: 20 Q And what was it? 21 A Kelley, Kelley. 22 Q And you said that was prior to your admission. 23 A Yeah. I was working there while I was bar bar 24 study. 25 Q Okay. And Page 9
1 A That was in Tampa. 2 Q Okay. And how long did you work there? 3 A I believe I worked there through the summer after 4 I passed the bar. And then sometime after that, I had an 5 opportunity to come back to Orlando, and I worked with Nolan 6 Carter. 7 Q What type of practice did you have at 8 Trentalange? 9 A Personal injury and nursing home neglect and 10 abuse. 11 Q And what was your position with Nolan Carter? 12 A I was an associate in nursing home and personal 13 injury. 14 Q And how long did you work there for? 15 A Off the top of my head, I don’t remember, but I 16 know until he retired for health reasons. So I think it was 17 about two years, two . . . 18 Q So around about 2005? 19 A I believe so. I’d have to go back and check. 20 Q That’s fine. It’s not a big deal. 21 And then in 2005, where did you work? 22 A Stovash, Case & Tingley. 23 Q Can you spell the Stovash? 24 A Stovash. 25 Q And what type of work did you do for them? Page 10
1 A I started in with the real estate, specifically 2 foreclosures and HO, homeowners association, litigation. 3 Q And were you an associate with them as well? 4 A Yes. 5 Q And how long did you work there for? 6 A Off the top of my head, I don’t recall. I 7 believe it was two, two years, two or three years. And then 8 I went to Graham, Builder, Jones, Pratt & Marks. 9 Q And how long did you work with them? 10 A Until 2010. But prior to 2010, it was Graham, 11 Builder Jones merged with Burr Forman. 12 Q Okay. And now it’s Burr Forman, right? 13 A Yes. 14 Q And did you continue to do real estate law, or 15 what did you do for . . . 16 A Yes. The foreclosures. 17 Q Okay. 18 A And homeowners association. 19 Q And was your position with them also an 20 associate? 21 A Yes. 22 Q And then after that, is that when you formed 23 Anderson Legal Group? 24 A Yes. 25 Q Okay. Page 11
1 A In 2010. 2 Q Okay. And is that still active? 3 A No. It’s I mean, it’s still technically 4 active. But I operated that for a period of six years, 5 until October 1st of 2016, and then it was in the process of 6 winding down while I was under Anderson Hew, when I brought 7 a law partner on. 8 Q And what is Hew’s full name? 9 A Jessica I don’t know her middle name. I think 10 it’s Kew. 11 Q Okay. 12 A Hew, Hew. 13 Q And is that still active? Anderson Hew? 14 A We are in the process of dissolution, but we have 15 separated. We separated on December 31st of 2017. 16 Q And where are you currently located? 17 A Orlando Legal. 18 Q And what is your position with Orlando Legal? 19 A I’m a contractor. 20 Q Like an independent contractor? 21 A Yes. 22 Q Is that your title or . . . 23 Do you have a title? 24 A I don’t have a title. 25 Q And so have you been with them since January of Page 12
1 this year? 2 A Yes. 3 Q And are they aware of this Bar matter? 4 A Yes. 5 Q Okay. And what type of work do you do with 6 Orlando Legal? 7 A Real estate. 8 Q During the audit period, we determined that you 9 have seven accounts. Is that correct? 10 A I’d have to look and see. But I know we have a 11 we had three with Anderson Hew. All three were at 12 Florida Community Bank. 13 Q Okay. 14 A I had a Seaside account, a Fairwinds account, and 15 a SunTrust account. 16 Q And then at some point, you also had a Northern 17 Trust account. Is that correct? 18 A Oh, yes. Loan, yes. 19 Q Okay. And the Community Bank matters under 20 Anderson Hew, you said you had three. What were those each 21 for, if you can remember? 22 A One was a general IOTA account. We had a 23 separate real estate IOTA account, and then we had a 24 separate account for wires that would come in. And then 25 they would be once the wire came in for a credit card Page 13
1 payment, those would be transferred to the appropriate 2 account. If it was a real estate matter, into the real 3 estate, and if it was a nonrealestate matter, into the 4 regular IOTA. 5 Q Okay. And then in regards to Anderson Legal, 6 what was the SunTrust, Seaside, and Fairwinds accounts each 7 used for? 8 A The Seaside account was for Stoneybrook West. 9 The Fairwinds was for just any other non, you know, 10 Stoneybrook West matters. And I opened up Seaside or 11 SunTrust for real estate transactions. Because part of 12 what when I I have a contact there, and they said for 13 me to get their business I needed to have an account, so I 14 opened up that account. 15 Q Okay. Now, in regards to your real estate work, 16 when you were doing closings, were you the escrow agent, or 17 were you also doing legal services for the different 18 clients? 19 A It depended on the particular client and what 20 they wanted. But we did have a separate agreement if they 21 were wanting the legal services. We had two different 22 agreements for an escrow only and an escrow plus legal 23 services. 24 Q Turn to Florida Bar’s Composite Exhibit 1. 25 MS. LEE: And then I have a copy for you, Warren, Page 14
1 as well. 2 MR. LINDSEY: Thank you. 3 (The Florida Bar’s Exhibit No. 1 is tendered to 4 the witness for her review.) 5 BY MS. LEE: 6 Q Do you recognize these documents? 7 A The first three pages look like they’re the 8 account number 2801 I believe was the real estate account at 9 Florida Community Bank. 3900 would have been the wire 10 account. And then 7902 I believe was the regular, 11 nonrealestate IOTA account. 12 Q And that’s your and Ms. Hew’s signature on those 13 accounts. Is that correct? 14 A Yes. 15 Q And then on page 6 of Florida Bar’s Composite 16 Exhibit 1 17 A Yes. 18 Q do you recognize that document? 19 A I recognize my signature. It’s been several 20 years, but . . . 21 Q Okay. And that’s the Northern Trust account that 22 you previously 23 A Yes. 24 Q indicated you had closed. Is that correct? 25 A Correct. Actually, they, Northern Trust, was no Page 15
1 longer going to be operating that type of account in 2 Florida. 3 Q Okay. And then on page 7, that’s the Seaside 4 account. Is that correct? 5 A Correct. 6 Q And that’s your signature on the document. Is 7 that correct? 8 A Yes. Correct. 9 Q Okay. And then on the next page is the Fairwinds 10 account. Is that your signature on those documents? 11 A Yes. 12 Q Okay. On page 10, it looks like there’s a 13 Cynthia 14 A Pischatola. 15 Q Yes. 16 Who is that? 17 A That was an office manager I had at the time of 18 the at least 2012, I believe. 19 Q Did she handle any of your trust account or 20 account matters? 21 A She assisted with ledger cards and and that. 22 Q Did she ever have access to use the Fairwinds 23 accounts? 24 A On a brief period of time, when I was traveling 25 outside of the country and we had a real estate closing. Page 16
1 Q Okay. Now, in regards to the Anderson Hew 2 matters, do you have any plan in place to close those 3 accounts? 4 A Yes. We are working I’m working with my 5 counsel and she’s working Jessica Hew is working with her 6 counsel to resolve those. 7 Q And when you reference “counsel,” you mean 8 Mr. Lindsey? 9 A Yes. Yes. 10 Q Okay. No problem. 11 What is Ms. Hew’s involvement with those Florida 12 Community Bank trust accounts now? 13 A Currently? 14 Q Umhmm. 15 A She’s the administrator of the account, so she 16 gets everything sent to her. I believe it’s at a post 17 office box. I know I had requested a copy of the change of 18 address from the bank and I was provided with that. So she 19 has all of those documents as well as all the originals, so 20 she’s . . . 21 Q Here is Florida Bar’s Exhibit 2. If you could 22 please review that. 23 (The Florida Bar’s Exhibit No. 2 is tendered to 24 the witness for her review.) 25 BY MS. LEE: Page 17
1 Q These are the listings that The Florida Bar 2 Foundation has for both Anderson Legal and Hew. Do you see 3 that the Northern Trust, the Seaside, and the SunTrust Bank 4 accounts were all registered with The Florida Bar 5 Foundation? 6 A Yes. 7 Q And then if you’d turn to the next page. Under 8 the Hew Law, it indicates that those accounts were 9 registered in February of 2018. Do you notice that? The 10 Florida Community Bank. 11 A Yes. I notice that’s what it says. 12 Q Okay. 13 A But I don’t know I don’t recognize the second 14 account number, of 9501. 15 Q Okay. Do you recognize the other two? 16 A Actually, no, I don’t. Because we had 39 the 17 account ending in thirtynine hundred twentyeightohone 18 and 7902. 19 Q Okay. Did you register the Anderson Hew accounts 20 with The Florida Bar Foundation? 21 A We did when we filled out the forms 22 Q Okay. When was 23 A on October the beginning of October. I 24 don’t know the exact date. It was the beginning of October 25 when Jessica Hew and I went into Community Florida Page 18
1 Community Bank and sat with Mike Savard, my banker, and set 2 everything up. 3 Q Okay. And that’s when you requested it. 4 A Yes. 5 Q Okay. Now, what about the under Anderson 6 Legal Group, your Fairwinds account was not registered with 7 the bar foundation. Can you explain why not? 8 A I would have to ask why they didn’t, because I 9 filled out the forms and all the paperwork. And I know 10 that I believe I’ve seen the interest as well. I’ll go 11 I’d have to check. I can get back to you on that, 12 though. 13 Q Okay. 14 MR. LINDSEY: I talked to Tom Silligo (phonetic) 15 on that. He’s inspecting it also. 16 MS. LEE: Okay. 17 MR. LINDSEY: ‘Cause he didn’t we didn’t 18 understand why that occurred that way, ‘cause it looked 19 like the interest was going to the Florida IOTA. So 20 that was I didn’t know if if the bank was just 21 unfamiliar with when they did that or what happened, 22 but . . . 23 MS. LEE: Okay. Okay. 24 MS. ANDERSON: I might have a copy in my email if 25 you want it. Page 19
1 MS. LEE: That’s fine. We can get that later. 2 MS. ANDERSON: Okay. 3 BY MS. LEE: 4 Q In regards to your firm Anderson Legal Group, who 5 was responsible for preparing the trust records? 6 A As far as accounting or . . . I mean, I was 7 ultimately responsible for preparing those. 8 Q Okay. So you were responsible for creating the 9 ledgers and 10 A Yes. 11 Q doing the monthly comparisons. 12 A Well, it would be a I had a CPA doing those, 13 and then I would get together with him or her, depending on 14 who that was. 15 Q Okay. And who was doing that for you? 16 A In the very beginning of the firm in 2010, a 17 woman named Tami Tharp, Tharp. After that, it was I 18 used somebody who was working at Railey & Harding, doing 19 their books, named Jane Corser. Corser, I believe. 20 And then after Jane Corser, I used an accountant 21 over at Geller, Ragan (sic), Oppenheimer ‘cause they did my 22 taxes. Janet Rapp, Rapp. She was a CPA that assisted me 23 as well. And then after Oppenheimer passed and Janet Rapp 24 moved on to her own firm, I went with Jason Nossfinger 25 (phonetic). And I can get his spelling of his name. Page 20
1 Q And what were they actually doing for you? 2 A Oh. I have a couple others too, if you want 3 them. 4 Q Oh. You do? 5 A I do, yes. 6 Q Okay. 7 A Marie Piland, Piland, and then Paul 8 Ashcraft, Ashcraft. 9 Q And were they each doing the same type of work 10 for you? 11 A Yes. They were assisting me. They were working 12 in the QuickBooks file. I would we would send them 13 copies of the checks and the case list that we had, and they 14 would do the keep everything, you know, with the 15 QuickBooks files, because I didn’t know how to use 16 QuickBooks. So they would just set that up, and then every 17 month, we would get together and I would get the reports and 18 then they would let me know if there were problems. 19 Q Who was creating the ledgers, the client ledgers? 20 A Well, I had my own way of doing it, and I 21 believed them to be doing it in QuickBooks. 22 Q Umhmm. And what was your way of doing them? 23 A We had I used a case list, and so I literally 24 would have under every especially for Stoneybrook, there 25 is one client. So there are so many, obviously, different Page 21
1 properties. So every time a check came in, it was scanned, 2 it was put in our DocMoto, which was our case management 3 software. And then it would be deposited, and it would be 4 scanned and put in there. And then it would be put on the 5 master case list so the client ‘cause the client got that 6 every month. 7 Q Okay. 8 A So it was in I literally have a copy of one, 9 but so it was put into that section under section was 10 “Funds Received.” So every time a check came in, it was put 11 on that case list. And then it was also taken and put on a 12 separate Excel spreadsheet which showed for each homeowner 13 what they had in trust. 14 Q Okay. And what about the other cases that you 15 were handling? 16 A That was on another list as well. 17 Q Okay. Now, who was responsible for preparing the 18 trust records for Hew Anderson? 19 A Well, we also had we had an accountant, 20 obviously. Jason. And then Jessica and I split those 21 responsibilities. I we were intended to split the 22 responsibilities. It’s not exactly how it worked out. 23 Q Let me give you Florida Bar’s Exhibit 3. 24 (The Florida Bar’s Exhibit No. 3 is tendered to 25 the witness for her review.) Page 22
1 BY MS. LEE: 2 Q Are you familiar with that document? 3 A Yes. It’s been a little bit, but yes. 4 Q Now, in that, you had explained that Jennifer 5 Taggart and Buddy Lipford of Taggart Consulting reviewed 6 your records. Is that correct? 7 A Yes. 8 Q What services did they provide? 9 A I don’t know how you’d describe them. I mean, 10 they assisted me with going through every single paper 11 deposit slip I had and going through all the different 12 QuickBooks and providing CPA services. 13 Q And when did you hire them? 14 A I believe that was either the end of January or 15 beginning of February. It’s coincide with the . . . 16 Q And just to clarify it for the record, you mean 17 January 18 A Yes. 19 Q of 2018. 20 A Yes. 21 Q Okay. Now, the records that you indicated that 22 they were providing, did they recreate new records based 23 upon what they reviewed or they were just doing new records 24 for you since that date? 25 A It wasn’t new rec I’m sorry. I don’t Page 23
1 understand your question. 2 Q Did they evaluate your old trust records? 3 A Yes. 4 Q Okay. Did they recreate records for you? 5 A I think they reclassified some of the errors that 6 were in QuickBooks. 7 Q What do you mean by “reclassified”? 8 A I know that there are a couple that weren’t 9 there were some issues, I guess, with one of the way the 10 accountants did it on the old records that I don’t really 11 know how to describe it. Just instead of putting it in the 12 contra account, it was money in and money out. It was just 13 classified. And I’d have to get clarification from Buddy 14 ‘cause I don’t remember the terminology he used. 15 Q Okay. And the records that you provided us, were 16 those the records from the old CPA or Buddy Lipford and 17 Jennifer Taggart’s records? 18 A I really don’t know how to answer. I mean, he 19 took the old all the old QuickBooks that were already 20 so . . . 21 Q And then created the new monthly reconciliations 22 and ledgers or . . . 23 A No. I mean, there were always monthly 24 comparisons and monthly reconciliations done. It was I’d 25 have to defer to him on . . . Page 24
1 Q Okay. 2 A ‘Cause I know I had at one point I think a 3 desktop version of QuickBooks that I paid for, for Marie 4 Piland, and then I had I think two or three different online 5 versions. I thought it was all the same version, but 6 apparently not. And then when I had Jason, one of my last 7 ones, he had had his own QuickBooks login. So it was 8 getting to meld them all together. I mean, they were there, 9 but they just all weren’t in one, under one account, I 10 guess. 11 Q Okay. Okay. Let’s turn to Florida Bar’s Exhibit 12 4. 13 (The Florida Bar’s Exhibit No. 4 is tendered to 14 the witness for her review.) 15 BY MS. LEE: 16 Q Do you recognize this document? 17 A Yes. 18 Q Now, this is a contract for services with 19 Stoneybrook. Is that correct? 20 A Correct. 21 Q And what did Stoneybrook West Master Association 22 hire you to do on their behalf? 23 A They were having me do a variety of things with 24 respect to the collections, attend board meetings, assist 25 them with the annual elections, look at the any Page 25
1 violations of the bylaws in their community. And we send 2 demand letters and just provide them general counsel and 3 represent them if they were a named defendant in a 4 foreclosure lawsuit when the bank was foreclosing. 5 Q And how were you paid? 6 A I was to be paid if it was an estoppel letter 7 that was drafted, I would be paid out of the estoppel funds 8 once they came in. And other than that, we submitted 9 invoices. 10 Q Were you permitted to pay fees to yourself or 11 only after an invoice and they agreed? Or how did that 12 work? 13 A Well, as far as when the money came in for 14 estoppels or you know, I would take my money first and 15 then write myself a check or the firm a check and then 16 disburse the rest of the funds to them. 17 Q Okay. Was there I’m not familiar with 18 estoppel 19 A Okay. 20 Q so if you could explain to me what that 21 A Oh. Say any 22 Q Meaning you took the funds out of the estoppel. 23 A Okay. An estoppel letter is done usually at the 24 request of a closing agent, title company, or a bank when 25 they foreclose, and it is a request that you’re asking for Page 26
1 a letter describing these are the fees you owe. And you get 2 an estoppel fee for that. And then the bank, or whoever 3 paid off will send you the funds, and then you disburse 4 from there. 5 Q Okay. 6 A So it is it’s to protect the future homeowner. 7 If you buy a property and all of a sudden the HOA says, “Oh, 8 you only owe $200,” once you get title, they can’t come back 9 and say, “By the way, that was 20.” 10 Q Okay. Now, is the estoppel fee a set fee per 11 each case, or is it 12 A Well, I had a I had a 13 Q How was that determined? 14 A I had a set fee. 15 Q Okay. And what was that? 16 A It ranged from depending on the time that they 17 needed, it could range from 150 to 330. And if it was a 18 24hour turnaround, we’d obviously charge more. 19 Q Okay. And was that established in your fee 20 agreement, or is that somewhere else? 21 A Yeah. That would be somewhere else. 22 Q Okay. And then in regards to the nonestoppel 23 matters, how did you you indicated that you sent an 24 invoice. Did they approve it and then you would pay 25 yourself, or what was the process in that regard? Page 27
1 A The process for those types that we were 2 invoicing, they would be billed in I think sixmonth 3 increments. So they would get an invoice. We would submit 4 the invoice to the management company, then management 5 company I believe would get with the board to approve them, 6 and at some point later, a check would be received. 7 Q From them? Or you took it out of . . . 8 A Their their management company. 9 Q Okay. And then the Agreement for Legal Services 10 indicates that the rate charged was 325 an hour. Is that 11 correct? 12 A At that time, yes. 13 Q Okay. And did that change? 14 A Yes. We lowered it based upon the volume that 15 they were providing. The volume of work, obviously, from 16 them. Yes. 17 Q So at no point should you have ever been 18 receiving fees out of the trust account. Is that correct? 19 A No, that’s not correct. 20 Q Okay. So where would the fees be coming from? 21 You indicated that the management would write you a check. 22 A Right. For those matters that were invoiced. 23 Q Okay. 24 A So if they were if it was a flat fee, for 25 example, for a foreclosure. And then the management company Page 28
1 would send us every quarter, they would send us the 2 any funds that they would receive, to hold, and then we 3 would biggest part of those would be attorneys fees and 4 costs. Those would be paid first, so that would be taken, 5 and then the rest disbursed to the but for to the 6 client. 7 But for general matters like, there’s a 8 litigation matter we were involved with that was a federal 9 matter, so those were invoiced because it was actually 10 Q Gotcha. 11 A a current litigation in time if it wasn’t a 12 flat fee or . . . 13 Q Okay. Now, the directors of Stoneybrook filed a 14 complaint against you. Is that correct? 15 A Correct. 16 Q Okay. And they had alleged that you failed to 17 provide accurate accountings of collection, did little or no 18 work on the files, failed to disburse collections timely, 19 and alleged that $14,000 was missing. Is any of that true? 20 A No. 21 Q Okay. So to go one by did you provide 22 accurate accountings to Stoneybrook? 23 A I believe I did, yes. 24 Q Okay. 25 A It was on the case list that they had every Page 29
1 single month, the exact amount of money that came in and was 2 being held. 3 Q And who would you send that to monthly? 4 A It depended. Originally, it was Randy Miller in 5 the beginning, when they had Sentry Management, and then it 6 was this woman. I believe her name was Patrick, Dana 7 Patrick. But that was with when she was with Sentry. 8 And then when Sentry Management was terminated and it was 9 FirstService Residential, Tim Quinlan (phonetic). And then 10 when Tim Quinlan was fired, he it was Mike Piazza 11 (phonetic). 12 Q Okay. So it would be to the management 13 A Yes. 14 Q company. 15 A Yes. 16 Q Okay. 17 A And typically the board was you know, the 18 board president or whoever the liaison was, was copied. 19 Q Okay. Now they also alleged that you $14,000 20 was missing. Was money missing out of the account? 21 A When we started going through this process, yes. 22 There were funds that were owed to Stoneybrook. And some 23 funds had not been disbursed yet because they were still in 24 trust. Referencing the Anderson Hew, those funds were 25 still had not been disbursed yet. Page 30
1 (The Florida Bar’s Exhibit No. 5 is tendered to 2 the witness for her review.) 3 BY MS. LEE: 4 Q I’m handing you what’s marked Florida Bar’s 5 Composite 5. Do you recognize these documents? 6 A Yes. 7 Q If you review page 19 of Bar’s Exhibit 5, the 8 beginning balance was $2,495. Is that correct? 9 A Yes. 10 Q And then a check was written in the amount of 11 952.08. Do you see that? 12 A Oh. Yes. 13 Q On page 19. 14 A Yes. 15 Q No problem. 16 Thus leaving your balance at you subtract the 17 2495 and then the 952, that would make it $1,543.54. Is 18 that correct? Does that sound about right? 19 A Probably. 20 Q Okay. If you turn to page 20, there are two 21 checks that were deposited into your account, from an M.A. 22 Anderson and a William Anderson. 23 A Yes. 24 Q Do you recognize those? 25 A Yes. Page 31
1 Q One was from M.A. for 12,000, and then William 2 Anderson, M.D., for 25. Is that correct? 3 A Correct. 4 Q Who are those people? 5 A M.A. Anderson is Maryann Anderson. She’s my 6 mother. And William Anderson is my father. 7 Q Okay. Now, after that deposit, then your balance 8 went up to the 38,543. That deposit was on what day? 9 A This looks to be the 23rd of February of 2018. 10 Q Yes. 11 And then if you turn to page 21, can you tell me 12 what this is? 13 A That is a I don’t know what it is, but it 14 looks to be the wire that I made to Neil Saydah, counsel for 15 Stoneybrook West. 16 Q The new counsel. Is that correct? 17 A Yes. Correct. Their new, current counsel. 18 Q Okay. And what date was that, that you had wired 19 that? 20 A That looks to be the 27th of February 2018. 21 Q Now, is that a wire that you initiated? 22 A Yes. 23 Q Okay. And is it correct, that without those 24 funds from your parents, you would not have been able to 25 make that payment to Mr. Saydah? Page 32
1 A Not out of the funds. Correct. 2 Q Okay. If you could turn to page 22 of Florida 3 Bar’s exhibit, Composite Exhibit 5. Can you tell me what 4 this is? 5 A That is a document that was created with myself 6 and Jennifer Taggart and Buddy Lipford. 7 Q And can you explain what it is. 8 A After we had gone through everything and we found 9 some errors, that those were the, I guess, matters that I 10 needed to, I guess, correct. I don’t know what the correct 11 word would be. I’d have to . . . 12 Q How much were you did you owe Stoneybrook at 13 that point? 14 A I’d have to look at my records to but I know 15 in speaking with Buddy and Jennifer I think the the 16 amount was what I wired to Mr. Saydah. 17 Q Okay. Do you know if this spreadsheet that you 18 created totals $37,000? 19 A I do not, but it looks like it’s I can’t 20 really read that, but . . . 21 Q Looks like it says 34,934.77. 22 A 34,739.77? 23 Q Yes. It’s a bad copy, but it says totals 24 34,934.77. 25 A Oh. The the balance. Page 33
1 Q Yes. 2 A And then the balance for Stoneybrook West. 3 Q Umhmm. 4 A Is that . . . 5 Q Yes. 6 A Okay. 7 Q Do you know why that doesn’t total the 37,870.03? 8 A No, I do not. But I can ask I can ask 9 Mr. Lipford and Jennifer about that. 10 Q Now, in 11 A Sorry. I remember there there was a reason, 12 but I just off the top of my head, I don’t recall. 13 Q Okay. In your response, you explain, that at 14 some times, you overpaid Stoneybrook. How did you determine 15 that? 16 A With Buddy Lipford and Jennifer Taggart doing an 17 analysis of everything. 18 Q Do you have any records? Did you say they 19 created records to show that you had overpaid? 20 A No. That was based upon going through all the 21 bank statements and the current records and going through 22 the checkbook and the and all the dupli all the 23 checks and finding out that there were duplicate checks. 24 Q Okay. Now, if you hadn’t received the money from 25 your parents, would you have been able to pay Stoneybrook? Page 34
1 A Yes. I would have had to do some . . . 2 Q From where? 3 A I probably I had a 401(k) 4 Q Okay. 5 A I could have gone into and other things I 6 could have. 7 Q Okay. So you would have had to take your 8 personal money to pay them back, is what you’re saying. 9 A Yes. 10 Q Okay. Can you explain why the account was 11 short? 12 A Yeah. There are a couple reasons, I think, why 13 the account was short. 14 Despite having this process in place and having 15 Seaside set up only for Stoneybrook West, it looks like when 16 the checks came in and they were put on the the ledger 17 that I had, master ledger for Stoneybrook West, and going 18 through all the deposits, it appears that some of them were 19 deposited into Fairwinds. And on a couple of occasions, 20 they weren’t deposited at all. And we con I confirmed 21 that by calling the check issuer, because I had a copy of 22 the check image. 23 And some of them were from banks specifically, 24 there is one I recall from Nationstar, that’s now 25 Mr. Cooper, and when I got ahold of them, they said the Page 35
1 check had never actually been cleared. So I had it on my 2 ledger as being received, and it was on all the right 3 documents, except, of course, for QuickBooks that I didn’t 4 check. 5 But they were on all of my my three different 6 I guess safety measures that I had set up. So I thought the 7 money was owed. And in speaking to the accountant that I 8 had at the time, the money was there, and I just so I 9 would disburse it to my client. 10 Q When did you discover that you were short in the 11 Stoneybrook account? 12 A During this Bar. 13 Q Okay. Were there any other times that you 14 received funds from your parents? 15 A On occasion. When I had to sue an associate of 16 mine. I had to borrow money to pay for my legal fees. 17 Q Now you’ve indicated that funds had gone into 18 your Fairwinds account? 19 A Yes. 20 Q Those checks? 21 A On occasion, yes. 22 Q Okay. Were you able to then transfer did you 23 transfer the funds from Fairwinds to the Stoneybrook 24 account? 25 A No. They were put into an operating account. So Page 36
1 they were no longer there. 2 Q Okay. 3 MS. LEE: Do you need a break? 4 MS. ANDERSON: Yes. 5 MS. LEE: Okay. Can we go off the record. 6 (After a brief break, testimony continued as 7 follows.) 8 MS. LEE: Are you ready? 9 MS. ANDERSON: Yes. 10 (The Florida Bar’s Exhibit No. 6 is tendered to 11 the witness for her review.) 12 BY MS. LEE: 13 Q If you could turn to Florida Bar’s Composite 6. 14 Do you recognize this ledger? 15 A Yes. 16 Q It is a ledger card for the Belle Isle Bayou 17 matter? 18 A Yes. 19 Q What is that? 20 A That was a commercial real estate closing that I 21 had done. 22 Q Who prepared that ledger? 23 A I think two different people. I know Jennifer 24 Taggart assisted in it. 25 Q And if you can see on page 24, it looks like Page 37
1 around July 25th of 2014, it begins a negative ledger 2 balance? Is that correct? 3 A Yes. 4 Q Do you know why that happened? 5 A I remember that there in speaking with 6 Jennifer and Buddy, there was a reason. Off the top of my 7 head, I don’t remember. I believe it was because there was 8 something that was maybe deposited into the wrong account 9 when they when either the seller or the buyer was putting 10 in money. 11 Q If you could turn to page 26 of Florida Bar’s 12 Exhibit 6. Do you recognize this check? 13 A Yes. 14 Q Okay. And is that your signature on the check? 15 A Yes. 16 Q And what was the purpose of that check? 17 A For the commercial transaction fee for the real 18 estate matter. It was a flat fee. And that amount, that 19 was for doing all the work and preparing all the paperwork 20 to negotiate any all the commercial lease. Because Belle 21 Isle Bayou was a restaurant and they were in default. So I 22 had to do an extensive amount of work for them, and that 23 we had agreed on a flat fee. 24 Q Okay. And if you could turn to page 27. That 25 reflects that check being written. Do you see that? Page 38
1 A Yes. 2 Q Okay. And then if you turn to page 28. Do you 3 recognize that bank statement? 4 A Yes. That’s the Fairwinds bank statement. 5 Q And is that where the check was deposited? 6 A Yes. Since I had completed the closing. 7 Q Okay. And if you could turn to page 31. Is 8 that the deposit slip that you used to deposit it into the 9 Fairwinds? 10 A Yes. 11 Q Did you record that check in the Belle Isle 12 ledger? 13 A I believe I did. I’d have to go back and look. 14 I had paper cards with that, and I also had the case list 15 for nonStoneybrook matters. But I can check. 16 Q If you look at page 24 in Florida Bar’s exhibit, 17 it reflects that $10,000 check. 18 A Correct. 19 Q Is that correct? 20 A Yes. 21 Q And do you see that your ledger became negative? 22 A Yes. 23 Q Okay. Can you tell me why the ledger became 24 negative? 25 A I believe, when I wrote the check out of the Page 39
1 Seaside account, that the money was when I was going 2 through this process, that the money, I believe, was in 3 another account. 4 Q Okay. The Belle Isle money was in a different 5 account? 6 A I believe so, yes. 7 Q And what account was that? 8 A I’d have to go back and check, but I can 9 certainly do that. Because on my settlement statement, I 10 just brought it when I was making disbursements, took it 11 all out of the one account. 12 Q If you’d turn to page 28, where you deposited 13 that check. 14 A Yes. 15 Q Did you then use funds to make several payments, 16 such as Amex, Navient, and Marlin Business? 17 A Yes. There were other payments made after those 18 deposits. 19 Q Okay. Was that your American Express card? 20 A It was the business American Express card. 21 Q And what is Navient? 22 A Navient is a law school loan. 23 Q Okay. And it’s your law school loan? 24 A Yes. 25 Q Okay. Can you tell me who Melinda Collins is? Page 40
1 A She was my paralegal. 2 Q Okay. If you’d turn to page 32. You used some 3 of those funds to pay her salary. Is that correct? 4 A I don’t know what my balance was at the time, 5 but I mean, she was she was paid every two weeks. 6 Q Do you understand, by depositing in that 7 Fairwinds account and then making those payments, that you 8 were using trust funds that you shouldn’t have been entitled 9 to? 10 A I thought they were my fees, because I had 11 completed the closing of the Belle Isle matter. 12 Q Can you tell me who Karamchand Doobay is? 13 A Karamchand Doobay. 14 Q Yes. 15 A He’s a former client of mine. 16 Q And what did he hire you for? 17 A A variety of real estate matters and defending 18 him in several lawsuits he had pending. I believe around 19 Jasper County, there is one for a claim I guess from he 20 was building something, and it was a and he didn’t pay 21 his contractor who cleared out land. So there are a couple 22 different matters that I represented him in. 23 Q Okay. When did you last represent him? 24 A I’d have to go back and look at my records, but 25 probably when he was arrested. Shortly thereafter. Page 41
1 Q Were you representing him in the criminal matter 2 or just 3 A No. 4 Q the okay. 5 A No. Robert Mandell was representing him in the 6 criminal matter. 7 Q Okay. Let’s mark Florida Bar’s Composite 13. 8 We’re going a little bit out of order. 9 MR. LINDSEY: She’s just worrying about 10 privilege, about attorneyclient privilege issues. 11 MS. LEE: I’m not going to ask anything for that 12 one. 13 MR. LINDSEY: That was her that was what she 14 was concerned about. 15 MS. LEE: Yes. 16 MS. ANDERSON: Thank you. 17 MR. LINDSEY: Thank you. 18 MS. LEE: Umhmm. 19 (The Florida Bar’s Exhibit No. 13 is tendered to 20 the witness for her review.) 21 BY MS. LEE: 22 Q Do you recognize this document? 23 A Yes. 24 Q And what is this first page? 25 A This is the ledger for Mr. Doobay. Page 42
1 Q And who created that ledger? 2 A I do not recall. 3 Q If you could turn to page 150 in Florida Bar’s 4 Composite 13. Do you recognize this check? 5 A Yes. 6 Q And what was what account was this check 7 issued from? 8 A The trust account. 9 Q Okay. And is that your signature on the check? 10 A Yes. 11 Q Now, the memo line is blank. Can you tell me 12 why? 13 A Because I didn’t actually give him the check. 14 Q Who gave him the check? 15 A Nobody. He he he came into my office and 16 took the check while I was headed out of town. 17 He had stated and showed me a screenshot of a 18 wire that was coming in from his father and that he said 19 either it was coming into my trust account. It was for a 20 real estate matter. And I would be out of town, so the 21 other attorney that was there, I said, “Once I confirm the 22 wire is in, that those funds have cleared, you can then” 23 “he’ll come to the office, and he can get the check.” 24 Q Okay. 25 A But that didn’t happen. He came and he got the Page 43
1 check from the secretary and then, without my knowledge, 2 deposited it. And then I had several exchanges with him nd 3 text messages regarding that theft and demanded its return. 4 Q But that’s your signature on the check. So had 5 you already signed it? 6 A I had 7 Q You had presigned it? 8 A I had presigned it. 9 Q Okay. And so who gave him this check? 10 A My paralegal. 11 Q And what was her name? 12 A Melinda Collins. 13 I guess I shouldn’t say “gave.” Allowed him 14 access to my office. That’s how he got it. 15 Q So he she didn’t hand him the check. 16 A She didn’t hand him the check, no. 17 Q Okay. He took it of his own. 18 And where was it located that he could take it? 19 A It was underneath my keyboard of my computer in 20 my office. 21 Q And how did he know that? 22 A I don’t know. 23 Q Did you end up receiving funds from Mr. Doobay 24 after that? 25 A Yes. Page 44
1 Q Do you know what he used the funds for? 2 A No. 3 Q Did he tell you what he needed the funds for? 4 A There was going to be a real estate transaction. 5 Q Okay. Were you aware that he had been arrested 6 at that time? 7 A I don’t believe so. I’d have to go back and look 8 at the multitude of text messages. 9 Q Okay. 10 A I know there was a real estate transaction 11 pending with a golf course in Jasper. 12 Q Okay. To this day, do you know what he used the 13 $100,000 for? 14 A No. They were returned to me quickly after that. 15 I don’t know what he was going to use it for. 16 Q Okay. If you’d turn to page 155. There’s a 17 check written to you. Is that correct? 18 A Yes. 19 Q Okay. And that’s from him? 20 A Yes. It’s a cashier’s check. 21 Q If you turn to page 158, thhrough 168. These are 22 documents regarding his arrest for a criminal offense, with 23 his bond being a million dollars. Has he ever indicated to 24 you that he used the money for the bond? 25 A No. Page 45
1 Q Which would be 10 percent would be $100,000 of 2 a milliondollar bond. 3 A No. 4 Q Okay. Did you have any other kind of 5 relationship with Mr. Doobay other than lawyerclient? 6 A (Shakes head from side to side.) 7 Q Okay. Do you know what day he went to your 8 office to get the check? 9 A All I know I know it was sometime right around 10 Christmas, ‘cause I was down in Fort Lauderdale. And when I 11 found out that he’d gotten it, I drove back. 12 Q Okay. Do you know exactly what day it was? 13 A No. But I could probably ask and find out 14 from from the other people that were there. 15 Q Did you call the police? 16 A No. 17 Q Why not? 18 A ‘Cause he was a client and . . . 19 Q Do you understand that your trust account was 20 short $100,000 for five days? 21 A Yes. 22 Q And you didn’t because he committed theft 23 against you. 24 A I know. 25 Q And you didn’t want to call the police? Page 46
1 A It would have just made it worse. I should have. 2 Q Were you aware of what he was charged with? 3 A I knew he was being charged aft I don’t know 4 when I found out, but I know Robert Mandell started 5 representing him. And he was my suite mate. We shared 6 space together. So I did know that he was retaining him. 7 And then I subsequently went on PACER after that and, you 8 know, found out information about him as I could. 9 Q Okay. If you turn to page 150. He the check 10 was dated 12/22. So I don’t know if that can give you any 11 kind of guidance as to when. Did you write that date on 12 there? 13 A I don’t remember. I mean, it it looks like 14 it’s my similar to my 2’s. I’d have to go back and check 15 the text messages and see when the screenshots of the wire 16 that was apparently coming into my account were. 17 Q So do you know if he took it that same day? 18 A I I don’t know. I’d have to check. But it’s 19 something I can try to see if maybe the other people that 20 were in the office know of. 21 Q If you turn to page 159. If you look under “Date 22 booked,” it indicates it’s the same day that you wrote the 23 check. 24 A I didn’t know that it was the same day. 25 MS. ANDERSON: Can we have a break? Page 47
1 MS. LEE: Yes. Of course. 2 We can go off record. 3 (After a brief break, testimony continued as 4 follows.) 5 MR. LINDSEY: She can supplement any supplement 6 any are you ready? 7 She can supplement any kind of answers that you 8 have. She says she has text messages where 9 MS. LEE: Okay. 10 MR. LINDEY: she can get specifics 11 MS. LEE: No problem. 12 MR. LINDSEY: for her answers. 13 MS. LEE: Okay. I’m never going to turn away 14 additional information. 15 Are you ready? 16 MS. ANDERSON: Yes. 17 MS. LEE: Okay. 18 (The Florida Bar’s Exhibit No. 7 is tendered to 19 the witness for her review.) 20 BY MS. LEE: 21 Q I’m going to provide you what’s marked Florida 22 Bar’s Exhibit 7. I should say Composite Exhibit 7. Can you 23 tell me what 13413 Fox Glove matter is? 24 A That’s a Stoneybrook West matter, it looks like, 25 since they’re the First International Title. And those are Page 48
1 probably I could maybe pull up my records. There should 2 probably be an estoppel letter. 3 Q Did you create this ledger? 4 A It was created on QuickBooks, and Buddy Lipford 5 helped in straightening a couple things out. 6 Q Okay. Can you tell me why there are negative 7 balances in the ledger? 8 A Not at I can’t yet, but I I’d have to pull 9 the estoppels, like a couple. I know this one had three or 10 four different estoppel letters, one of them being in 11 January 5 of 2016. That was for due to the association, 12 with attorneys fees. $5,526.18. That consisted of three 13 different estoppel letters. And then attorneys fees, 14 transfer fees, resale capital contributions, lawn 15 maintenance, late fees, interest, and assessments. 16 Q And how much was that total, you said? 17 A This one was $5,526.18. And it looks like . . . 18 Q Okay. If you’d turn to page 34 in Florida Bar’s 19 Composite Exhibit 7. 20 A Yes. 21 Q Do you recognize that check? 22 A Yes. 23 Q And is that your signature? 24 A Yes. 25 Q And then the stamp on the back indicates that you Page 49
1 deposited it into your Fairwinds operating account? 2 A Yes. 3 Q What was the purpose of this check? 4 A I’m looking through the different estoppels. 5 It was attorneys fees, estoppel fees. 6 Q Now, after you deposited that check and it 7 cleared out of your Seaside account, your ledger reflects 8 that you had a negative balance of $3,707.08? 9 A Yes. 10 Q Do you know why that is? 11 A I’d have to look at all the different checks that 12 came in, but I believe the estoppel was shorted and I made 13 disbursements in accordance with the estoppel letter. 14 Q But if you didn’t have the funds, how could you 15 have issued a check? ‘Cause it’s indicating that you only 16 had $751, according to your balance. 17 A Right. I think that the sheet that I had with 18 the case list had the checks on it were incorrect. And 19 that’s unfortunately what I used to issue the checks. 20 Q Turn to page 38 in Florida Bar’s Exhibit 21 Composite Exhibit 7. Do you see that you used those funds 22 to pay your American Express and other bills? 23 A Yes. 24 Q Was that American Express the business account 25 that you mentioned earlier? Page 50
1 A Yes. 2 Q Okay. And you also used it for attorney 3 closing and ADP Payroll. Is that for payroll for your staff 4 or . . . 5 A ADP Payroll would have been 6 Q What? 7 A I think they’re a payroll company, so I’m not 8 quite sure if it was just the like, a transaction fee or 9 something. 10 Q Okay. Turn to page 43. There are also two more 11 checks to Anderson Legal in the amount of 480, dated 12 February 29th and November 10th. Did you issue both those 13 checks? 14 A Yes. 15 Q And what were those for? 16 A Those were for a check for the estoppel, but I 17 believe those were for three estoppel fees totaling $480. 18 And that’s on the estoppel letter dated January 5th of 2016. 19 And I can also supplement with all these. 20 Q Okay. Can you explain to me why you wrote both 21 those checks when your ledger was negative? 22 A I believe I wrote one of the checks not realizing 23 I had already ‘cause it was still on our internal ledger 24 as 25 Q Umhmm. Page 51
1 A not being disbursed. 2 Q And then on the ledger, it says “ALG Cleanup.” 3 Can you tell me what that is? 4 A I would have to ask Buddy Lipford to specifically 5 explain that. I know he had when we were going through 6 this process, had explained what he was doing, but I just 7 don’t recall what that what that was. 8 Q But once there was that increase, the ledger was 9 no longer negative. Is that correct? 10 A Correct. 11 Q Okay. Here’s Florida Bar’s Composite Exhibit 8. 12 (The Florida Bar’s Exhibit No. 8 is tendered to 13 the witness for her review.) 14 BY MS. LEE: 15 Q Do you recognize these documents? 16 A Not specifically this one, but yes, I I 17 recognize that these are ledger cards. 18 Q Who prepared this ledger? 19 A I believe Buddy Lipford and Jennifer Taggart. 20 Q Can you tell me what the purpose of this ledger 21 is? 22 A Not really. I know that when we were doing this 23 whole process and we were trying to get everything 24 straightened up and cleaned up and find out either where the 25 shortages were or the discrepancies and to just get Page 52
1 everything in order and corrected so I could correct the 2 mistakes that needed to be corrected, that they assisted 3 with this. 4 Q Okay. 5 A ‘Cause I had taken in all my boxes with all my 6 deposit slips and all the estoppels. We just went through 7 everything. 8 Q But there’s a lot of negative balances listed on 9 this ledger. Is that correct? 10 A (There is no audible response.) 11 Q Can you explain why? 12 A I would have to ask them and get back to you on 13 that. I don’t since I don’t do accounting, I don’t . . . 14 Q Do you understand the negative balance means 15 shortages 16 A Yes. 17 Q in those accounts? 18 A Correct. 19 I think, during this process, when we were going 20 through all the accounts, that they were creating this so I 21 would know how much I needed to put in to correct those 22 shortages. 23 Q Okay. And does that mean you were where were 24 you getting the money to put . . . 25 A From my parents. Page 53
1 Q Okay. 2 A Yeah. They were often, like, under . . . 3 Q Hmm? 4 A They were often the source I went to if I needed 5 any funds. 6 Q When did you become aware of the negative 7 balances in all these ledgers? 8 A When we started going through everything during 9 this process. 10 Q And when you say “we,” you mean Ms. Taggart and 11 Mr. Lipford. 12 A And Buddy. Yes. 13 Q Okay. And what did they indicate to you when 14 they were observing this ledger? 15 A As far as? 16 Q What did they indicate to you, after them 17 creating this ledger, as to what happened? 18 A Well, there are several reasons why this 19 happened. 20 Q Okay. And what is that? 21 A Even though I had this internal system and 22 unfortunately, I relied upon accountants maybe too much and 23 didn’t understand what I was looking at every month when I 24 was looking at reconciliations, and I just used my own 25 spreadsheet and case list as a guide. Page 54
1 Originally, when I set everything up and I 2 started getting this volume of cases, I thought this was a 3 good way ‘cause the client would get to see every week, 4 this case list was updated. 5 So anytime money came in, there’s a column, on 6 the case list, for the entry of that money for that 7 particular client. So then it would be put on another, 8 like, Excel list, under that homeowner, just for us. And as 9 they would be paid, they would be taken off. 10 And then there’s also, we had this thing 11 called a Wunderlist. And I have it with me. But it was 12 like basically a task list with every single amount that 13 ever came in. So when money would come in, all three of 14 those things were done before it even got to the accountant. 15 So I just I mistakenly didn’t use QuickBooks, 16 and I just thought the accountant was using the QuickBooks, 17 and I had my own internal threestep process. And I thought 18 I was following the rules and keeping a detailed thing. 19 And the only thing I didn’t have was where 20 having these separate trust accounts where the money went. 21 Because if it was meant to go into Seaside, it didn’t always 22 get deposited to Seaside. And on several occasions the 23 paralegal made a deposit and I have the original deposit 24 slips. It was it went into Seaside, but on the back, she 25 used a Fairwinds deposit slip. I know one or two occasions Page 55
1 where it even had “Seaside” stamped on the back of it but it 2 was deposited into Fairwinds. 3 Q Were you doing the monthly reconciliations to see 4 where the checks were going, to notice that they were being 5 improperly 6 A Not 7 Q deposited? 8 A Not correctly. I just kind of relied on the 9 accountant, you know. And he would give me the 10 reconciliations, and I just didn’t know what I was looking 11 at, unfortunately. And I certainly do now. 12 Q And prior to Mr. Lipford and Ms. Taggart, did 13 your accountants ever tell you that you were short? 14 A Never. Because if I had known I was short, I 15 would have addressed it a long time ago. 16 MS. LEE: Do you want to take another break? 17 MS. ANDERSON: No. I’m okay. 18 MS. LEE: You sure? It’s fine. 19 MS. ANDERSON: Okay. We’ll take a break. 20 MS. LEE: Okay. We’ll go off record. 21 (After a brief break, testimony continued as 22 follows.) 23 MS. LEE: Let me know when you’re ready. 24 MS. ANDERSON: I’m ready. 25 MS. LEE: Okay. Page 56
1 BY MS. LEE: 2 Q Was there a reason why you went through so many 3 accountants too? 4 A Well, let’s see. 5 Q You’ve listed a number of them. 6 A Yeah. I’ve sort of been well, Tami Tharp, she 7 was remote, and she and her husband lived in Hunters Creek, 8 and she just didn’t want to work anymore. 9 And then Jane Corser had her fulltime job at the 10 other law firm, so I needed somebody as my business 11 picked up, I needed somebody more full time. 12 And then Marie Piland, her husband was a 13 firefighter downtown and he retired, so she wanted to retire 14 with him. 15 And obviously then Geller Ragans, in between 16 that, Geller Ragans, Janet Rapp, she went on her own. And I 17 decided not to use them in going forward, just to use their 18 CPA taxfiling services. 19 And then Jason Nossfinger and I will get the 20 spelling of his name for you I had hired him, and he was 21 still, and still is, one of the accountants for Anderson 22 Hew. We were using him. 23 And Paul Ashcraft, he’s just never around. He’s 24 always on vacation or going or has all these other law 25 firms that he was, you know, working with. Page 57
1 Q Okay. 2 A And now it’s Buddy, so it will be Buddy. 3 Q When did you open the Fairwinds trust account? 4 A Oh, off the top of my head, I opened the Fairwind 5 in 2010. And I was doing Fairwinds’ foreclosure work, so 6 probably around, I would think, sometime 2010. But I’d have 7 to check. I don’t remember. 8 Q And what was the purpose of that account? 9 A Just a general in case I got clients that needed 10 to put money in trust. When I first started my practice, 11 Fairwinds was you know, I didn’t have any trust account 12 money ‘cause it was just the foreclosures on their side. So 13 it was through them, and they just paid me directly. 14 Trying to think when have I had a just a 15 brandnew client, I think, for a bankruptcy. There was a 16 couple, so that but without looking at my records, that 17 was probably the reason why. 18 Q Okay. And was anyone else besides you authorized 19 to make deposits and disbursements out of that account? 20 A Well, any of my secretaries could make deposits. 21 Q What about disbursements? 22 A Only for a short period of time, when I was in 23 I went out of the country with my mom. And Cindy Pischatola 24 for a brief time, during my absence. 25 Q Okay. Page 58
1 A But there was another attorney there that would 2 supervise that at the time. 3 Q Is there a reason why you maintained a trust 4 account at that credit union? 5 A That was the start of my practice. They gave me 6 all the foreclosures, so I gave them my business. 7 Q Now, were you aware that you weren’t permitted to 8 have trust accounts at credit unions until this year? 9 A No, I wasn’t. When I was setting up all my 10 accounts, they knew I needed an IOTA account, so they 11 offered me one. 12 Q Okay. 13 A And I didn’t know that the rules when I my 14 understanding of the rules when I read them, you could use 15 credit unions. 16 Q Yeah. The court approved a rule change on 17 November 9th, but it wasn’t effective until this year, that 18 you’re allowed to have a trust account at a credit union. 19 So . . . 20 They never let you know? 21 A Never. 22 Q Okay. Did you ever get clients’ permission to 23 hold their funds at a credit union? 24 A No. 25 Q Did you authorize them to notice notify the Page 59
1 Bar in regards to any kind of insufficient funds or 2 overdraft notices? 3 A Yes. And I thought I had filled out one of the 4 sheets for The Florida Bar as well. And they represented 5 Lucia (phonetic) Soto, or DeSoto, I believe 6 Q Umhmm. 7 A and George Machadow (phonetic), when they 8 gave me the business, represented that they had a lot of 9 attorney accounts and trust accounts there and they were 10 familiar with the rules. 11 Q Do you understand, that by having it at a credit 12 union and their not being registered with the bar 13 foundation, we would not have been aware of any kind of any 14 overdrafts or NSFs in the account? 15 A I know that now through you, but I did not know 16 that at the time. ‘Cause there was an instance where there 17 was a bank error on a deposit and that The Florida Bar had 18 been they told me The Florida Bar was notified. 19 Q Okay. Did you receive a letter from the Bar 20 regarding 21 A No. They sent 22 Q the overdraft? 23 A No. They sent me a copy of it. 24 Because it was a bank error. They actually took 25 a check that said “Deposit only into trust” and put it in Page 60
1 with the deposit slip. I still have it. But the deposit 2 slip said trust account, the receipt says trust account, but 3 it was in operating. 4 Q Okay. 5 A It was immediately corrected. 6 Q But you never got a letter from the Bar saying 7 that they were opening a file in regards to the overdraft. 8 A No. I just figured since the bank had 9 intercepted it and immediately wrote a letter and 10 acknowledged it was their bank error since I had all the 11 documents that said it was in in the trust account. Even 12 the deposit slip said trust trust account. 13 Q Okay. Show you what’s marked Florida Bar’s 14 Composite 9. 15 (The Florida Bar’s Composite Exhibit No. 9 is 16 tendered to the witness for her review.) 17 BY MS. LEE: 18 Q Do you recognize these documents? 19 A That’s my Fairwinds Credit Union statement. 20 Q Okay. If you’d turn to page 58 of Florida Bar’s 21 Composite 9. Do you recognize this check? 22 A Which one? 23 Q The $32,000 check. 24 A Yes. That was written to me personally, but it 25 was for Andrea Vogels, a client of mine. Page 61
1 Q And you said they wrote. Who is who wrote the 2 check to you? 3 A It was the attorney for Mr. Bill Murphy. I don’t 4 recall his name. But it was it was a case that we had 5 obtained judgment, and after the entry of judgment, they 6 settled. 7 Q Okay. And this check was a settlement check? 8 A Yes. 9 Q If you could turn to page 54. Just for the 10 record, it reflects the deposit on July 15 that included 11 that 32,000. Is that correct? 12 A On July 13th? 13 Q July 15th. 14 A 15th. Yes. 15 Q And that check was deposited to what account? 16 A The wrong account. 17 Q Okay. Which was your 18 A Operating. 19 Q your operating instead of trust. Is that 20 correct? 21 A Yes. 22 Q Okay. If you could turn to page 62. This is a 23 response from your attorney. Is that correct? 24 A Yes. 25 Q And he also explains that the deposit was in Page 62
1 error. Is that correct? 2 A Yes. 3 Q Okay. Can you tell me why that how that 4 happened, that it was deposited into the operating instead 5 of trust? 6 A I’d have to look at the back of the check that 7 would to see. 8 Q That page would be . . . 9 A Yeah. 10 Q Also, just for your information, on page 65 is 11 the deposit slip. 12 A Yeah. It looks like Melinda Collins filled out 13 the deposit slip for the operating, for both of them. The 14 first one was my fees from contract work with the Wolf law 15 firm. 16 Q Did you direct her to deposit it in the operating 17 account? 18 A No. It was supposed to go into the trust 19 account, because then I wrote a check out of the trust 20 account to Ms. Vogels. 21 Q Do you know why she deposited it in the operating 22 instead of the trust account? 23 A Just a mistake. 24 Q Did you catch that when you did the your 25 monthly reconciliations? Page 63
1 A No. 2 Q Did you notice it when you were writing you 3 know, spending money out of your operating account to pay 4 it looks like PayPal, IRS, Highwoods? 5 A No. 6 Q Hmm? 7 A No, I didn’t notice this one. 8 Q If you would turn to page 70. Can you see by 9 September 19th that your balance is down to $194? The daily 10 ledger balance? 11 A Yes. 12 Q So you had spent almost all of the Vogel 13 settlement funds. Is that correct? 14 A It appears that way, yes. 15 Q Okay. On page 55, there’s a withdrawal for ADP 16 EEPAY/GARNWC. Do you know what that is? 17 A That’s on what page? 18 Q 55. 19 It says “ADP EEPAY” and then “GARN.” 20 A That was payroll processing services 21 Q Okay. 22 A for the staff. 23 Q Was that a garnishment or . . . 24 A No. I’ve never had a garnishment. 25 Q Okay. Wonder why they labeled it GARN. Page 64
1 A At this point, I had Jason Nossfinger with 2 they’re a firm up in Chicago. So they had set up all those 3 ACH’s. So I can certainly . . . 4 Q At what point did you become aware that you had 5 spent the settlement funds? 6 A I don’t recall. 7 Q If you could turn to page 75. Do you recognize 8 this check? 9 A Yes. 10 Q And what is that a check for? 11 A It’s to my client Andrea Vogels for the 12 settlement. 13 Q Do you understand, that because you wrote it out 14 of the trust account, that you caused a shortage? 15 A Yes. 16 Q Okay. 17 A I obviously did not at the time, but I do now. 18 Q And then if you turn to page 76. Do you 19 recognize that document? 20 A Yes. 21 Q And that is the ledger reflecting the negative 22 the shortage of $27,289.50. Is that correct? 23 A Correct. 24 Q Who created this ledger? 25 A Buddy Lipford and Andrea I mean not Andrea. Page 65
1 Q Ms. Taggart? 2 A Jennifer, yes. 3 Q Have you refunded the 27,289.50? 4 A I’d have to go back through my records and see. 5 I just don’t recall. I know I’ve borrowed a lot from my 6 parents to make sure it’s all taken care of. 7 Q Okay. 8 (The Florida Bar’s Exhibit No. 10 is tendered to 9 the witness for her review.) 10 BY MS. LEE: 11 Q I’m handing you what’s marked Florida Bar’s 12 Exhibit 10. 13 A Yes. 14 Q Do you recognize these documents in Florida 15 Bar’s Composite 10? 16 A Yes. 17 Q Can you explain to me what the GastroIntestinal 18 Consultants of Central Florida matter is? 19 A That’s a GI doctor that I represent in various 20 matters. Specifically I represent represented him in a 21 dispute with one of his vendors a while back and but 22 there are other things I don’t recall off the top of my 23 head, but without looking at my case list. I represented 24 him for the past couple years in several matters. 25 Q Can you tell me who prepared this ledger? Page 66
1 A I believe Buddy and Jennifer. 2 Q Can you explain to me why there is large negative 3 balances 4 A At this 5 Q in the account? 6 A At this time, I cannot. I know we’re still 7 working through some of the ones on the Fairwinds. 8 Q Okay. If you could turn to page 77. Or not 77. 9 I’m sorry. 10 On February 23rd, there was an entry for a 11 disbursement of $8500. At that point, then the balance was 12 negative 13,723. Do you see that on your ledger? 13 A On my ledger. Right. 14 Q Then the check for 8500. 15 A Correct. 16 Q Okay. If you’d turn to page 80. Can you tell 17 me, do you see the wire transfer for that 8500? 18 A Yes. 19 Q Can you tell me what that was for? 20 A I don’t recall, but I can go back to my records 21 and supplement. I don’t I don’t remember if it was 22 because we were I was transferring over because he was 23 still a current client and we were in the process of trying 24 to transfer money, you know, and wind up Anderson Legal 25 Group. But I just don’t recall. Page 67
1 Q Can you turn to the next page. There’s a wire 2 application. 3 A Yes. 4 Q And it looks like it was the beneficiary was 5 Anderson Hew. 6 A Yes. 7 Q So do you know why now those funds would have 8 gone to Anderson Hew? 9 A No. Not off of the top of my head. 10 I mean, I know that around that time, Jessica and 11 I were trying to get anything ‘cause there was another 12 another client had put money into my account, by pay by 13 credit card, and so she was like, We have to get any money 14 that of our current clients over into Anderson Hew 15 immediately. 16 So I just you know, we didn’t have any staff, 17 and I just was trying to get it done quick just so I could 18 not have to deal with that any further and get it taken care 19 of. 20 Q Okay. Yeah, the description on the wire 21 application says “For business purposes.” 22 A Fairwinds is never very descriptive in there. 23 Q Okay. 24 A But I can go back and look at my emails, ‘cause 25 I’m and supplement. I just don’t remember. Page 68
1 Q And you you conducted that transfer. Is that 2 correct? 3 A Yes. 4 Q Okay. If you’d turn to page 82 and 83. It 5 reflects that wire transfer from you to the Anderson Hew 6 account. 7 A Umhmm. 8 Q Can you tell me what the funds in the Anderson 9 Hew account were, prior to that wire transfer? The wire 10 transfer was on the 23rd, so it would have been before that. 11 Under the daily balances on page 83. 12 A Page 83? It looks like 27 2700. 13 Q Okay. Can you turn to and just to clarify, 14 can you tell me when those funds were transferred into the 15 Anderson Hew? If you’d look at page 83, it reflects the 16 date of when the wire was transferred into the . . . 17 A Oh. I’m sorry. Wire okay. 2/23. 18 Q Can you turn to page 87. 19 A Yes. 20 Q Do you see the check written to Highwoods? 21 A Yes. 22 Q And what date was that? 23 A The 22nd. 24 Q So at the time you issued that check, there were 25 funds in the account until you wired those funds the next Page 69
1 day. Is that correct? 2 A From the statement, that should appears to be. 3 That appears to be the case, from the statement, yes. 4 Q Okay. Can you tell me what that check was for, 5 for Highwoods? 6 A That would have been from rent for rent. And 7 there should have been a deposit also for from our 8 subtenant. We had a subtenant, so he should have had a 9 deposit as well. 10 Q And that on there says late fees? 11 A Yes. ‘Cause it was due it was due on the 12 by I think the 5th. And so if he didn’t pay it by the 5th, 13 there’s an automatic late fee. 14 Q Okay. 15 A So I don’t believe I’d gotten the money from my 16 subtenant yet. 17 Q Okay. Did you review the ledger before on 18 Gastro before you sent that wire? 19 A No. I know I had a list of transfers I had to 20 make, Pasilio (phonetic) being one of them, for I think 21 it was 1200 or 1250. That was still in the account. 22 Jessica had given me a list of things I had to get 23 transferred over. 24 Q Okay. Can you turn back to page 77. There’s an 25 entry for a disburment disbursement excuse me for Page 70
1 $5,525. 2 A Yes. 3 Q Resulting in a negative ledger balance of 4 $19,248. Is that correct? 5 A Yes. 6 Q If you turn to page 90 in Florida Bar’s 7 Composite 10. Do you see the transfer reflecting that 8 amount, that $5,525? 9 A “Deposit Internet Transfer.” Yes, I see it. 10 Q And where was that, the funds, transferred from? 11 A It looks to be Fairwinds. 12 Q And that was your trust account? 13 A I don’t recall off the top of my head what 14 number. 15 Wait. Seven No. You said it says 16 checking. 17 Q Well, it’s 0174. 18 A Right. Seven . . . 19 Q Is that your trust account? 20 A I think there was 74 or 174. Yes. 21 Wait. The 174 is operating. I’m sorry. It says 22 operating checking 174. 23 Q It says deposit Internet transfer from the 0174. 24 And then it the next page, it’s transferred to 461. Is 25 that yeah. The 461 the 7461 I should say. I believe Page 71
1 your trust account’s 0174. Correct? 2 A I think so, yes. 3 Q Okay. So it went from trust to your operating 4 account. Do you remember making that transfer? 5 A Not off the top of my head. I don’t recall. I 6 know there was a period of time where I only had my 7 operating checkbook, you know, at the office, so that may 8 have been why. I can go back and look and see if I have any 9 notes. 10 Q If you could turn to page 94. Do you recognize 11 this check? 12 A Yes. 13 Q Is that your signature? 14 A It looks to be my signature. 15 Q Do you know what that was for? 16 A Off the top of my head, no. I’d have to get 17 with Jessica and I communicated primarily by email. And 18 a lot of emails. So I’m sure I can go back and look at one 19 of those to get clarification. 20 (The Florida Bar’s Exhibit No. 11 is tendered to 21 the witness for her review.) 22 BY MS. LEE: 23 Q Okay. I’m handing you what’s marked Florida 24 Bar’s Exhibit 11. Be careful. This staple’s kind of rocky 25 and I just don’t want you to scratch yourself. Page 72
1 A Okay. 2 Q Do you recognize this document, or these 3 documents I should say? 4 A Yes. 5 Q Do you know what these are? 6 A These are current trust account ledgers for an 7 El Viento, Dickinson. Looks like it’s looks like real 8 estate closings. 9 Q Okay. Can you tell me who prepared these ledger 10 cards? 11 A I know that Buddy and Buddy Lipford and 12 Jennifer Taggart helped me, and then I don’t know originally 13 if they were pulled from my old QuickBooks or not. 14 Q Okay. Based upon our review of your ledger 15 cards, it shows that you should have been holding a total of 16 $266,423.27. If you’d turn to page 112. Can you tell me, 17 as of April 30th, in your daily ledger balance, how much you 18 were holding? 19 A 120,239.56. 20 Q Okay. So based upon your ledgers and a review of 21 your bank statement, it shows that you were a shortage of 22 $146,183 sorry 146,183.71 is the shortage. Can you 23 explain why that is? 24 A Not at this time. I know Buddy Lipford and I 25 have been working, and still trying to go through all the Page 73
1 statements and all the deposits and try to figure out what 2 has happened. 3 Q If you’d turn to pages 114 through 138. This is 4 your journal for your trust account. 5 A Umhmm. 6 Q Do you know who prepared this? 7 A I believe again, I’d have I’d have to 8 confer with Mr. Lipford and Jennifer, ‘cause I don’t know 9 what was taken from the prior QuickBooks we I had. As I 10 said, I had the QuickBooks online version, two or three 11 different logins, and I also had the QuickBooks desktop 12 version. And I know they were working, I believe, off the 13 QuickBooks online version. 14 Q Okay. Can you turn to page 136. If you notice 15 July 31st, 2014. That’s an entry without any identification 16 of the client, and the payments were in your ledger. 17 A I’m sorry. For the 3250? 18 Q Yes. 19 Also, September 30th and October 31st on that 20 same page indicates a deposit, but it’s actually a 21 disbursement, based upon our review of your records. 22 A I’m sorry. Which one? On October 31st? 23 Q Yes. And September 30th. 24 A Okay. 25 Q If you turn to page 35 (sic). On July 30th, Page 74
1 2015, there’s unexplained transfers. 2 A Okay. 3 Q If you turn to page 133. On page 133, October 4 26, 2015 5 A Okay. 6 Q there’s a $3,000 deposit and funds transfer 7 with no explanation. 8 A Okay. Can I explain it says “deposit” 9 ‘cause there is one closing where I remember that the funds 10 were stamped, and it was the it was a real estate 11 closing, and it was stamped and deposited into the trust 12 account. 13 And when the Realtor called me to say that there 14 was an issue with his check, I contacted Fairwinds, and then 15 we pulled the deposit slip. And even though it was stamped 16 for the trust account and written on a trust account and the 17 deposit slip was correctly labeled, it was actually put in 18 the operating. 19 And I know that that was that may have been 20 around that time. I’d have to doublecheck with Buddy to 21 actually pull the we can pull the deposit slip. And if 22 it’s to what was his name? Greco Realty I think was the 23 recipient. 24 Q Okay. If you’d turn to page 125. On March 15th, 25 there’s a transfer for $3500 without an explanation. Page 75
1 A Okay. 2 Q Page 124. On March 29th, there’s another 3 transfer without an explanation, for $2500. On May 13th, 4 2016, which is page 123 sorry. May 13th is the date. 5 A Okay. 6 Q there’s another transfer, in the amount of 7 $2600. And then on page 122, on September 6th, there is 8 another transfer, for $4500. September 6th. 9 Do you know why you didn’t notate who the client 10 was for all these transfers? 11 A I’ll have to go back with Buddy and Jennifer and 12 get and go through the other documents and see. ‘Cause I 13 know we were working, trying to get everything, you know, 14 and figure out what had actually happened. 15 Q Okay. If you look at page 96 of Florida Bar’s 16 Exhibit 11, that first page is in regards to El Viento. 17 A Yes. 18 Q Can you tell me what that is for? 19 A That was a real estate closing. We had issued a 20 check to the home warranty company. And the name off the 21 top of my head, I don’t recall. They had not cashed the 22 check. And then all of a sudden I had ACH’s coming out of 23 the account, and I was trying to stop it and contacting the 24 company. 25 And they had told me that their the customer Page 76
1 had given them the account number. And I said, “That’s 2 impossible.” I can’t remember the woman’s name, but “the 3 buyer doesn’t have my account number. You guys had the 4 check.” 5 And this was to pay for her home warranty. And 6 they said they would authorize any ACH’s out of it, but they 7 hadn’t cashed the actual check. 8 Q Okay. 9 A But the total was for the actual amount of what 10 she would have paid. 11 Q If you could turn to Florida Bar’s Exhibit 12. 12 Is that the warranty deed in regards to this? 13 A I’m sorry. I don’t have 12. 14 Q Oh. I’m sorry. I’m just trying to get . . . 15 (The Florida Bar’s Exhibit No. 12 is tendered to 16 the witness for her review.) 17 BY MS. LEE: 18 Q Who did you represent in this matter? 19 A I would have represented the seller. 20 Q Okay. And for the record, can you state who that 21 is? 22 A Andre Dartez. 23 Q Can you turn to page 141 through 144. 24 A Yes. 25 Q Okay. On page 141, it reflects that you received Page 77
1 a wire in the amount of 160,720 and 21,338.13. Is that 2 correct? 3 A Yes. 4 Q And were those deposited into your operating or 5 your trusts? 6 A They should have been wired into the trust 7 account. 8 Q But they actually were deposited into your 9 operating. Is that correct? 10 A They were wired into the operating, yeah. 11 Q Okay. Can you explain why? 12 A A mistake. I’d have to go back and see what 13 wiring instructions they were provided. But for any real 14 estate matters, the wire instructions should have been the 15 trust account. 16 Q Okay. Can you turn to page 142. You can see 17 that they were both then transferred to your trust account. 18 Is that correct? It would have been on November 25th. 19 A Correct. 20 Q Okay. 21 MS. ANDERSON: Can I take a break, please? 22 MS. LEE: Yes. 23 (After a brief break, testimony continued as 24 follows.) 25 MS. LEE: You ready? Page 78
1 MS. ANDERSON: Yes. 2 MS. LEE: Okay. We’ll go back on. 3 BY MS. LEE: 4 Q Turn to page 145 of Florida Bar’s Composite 12. 5 Do you recognize that check? 6 A Yes. 7 Q And what was that for? 8 A That was to the United States trustee. 9 Mr. Dartez was in a bankruptcy and I’d have to go back 10 and check the court order, but part of the settlement 11 statement was for the United States trustee to get the 12 think it was excess proceeds, perhaps, from the sale. She 13 was the United States trustee for that particular case. 14 Q Okay. So on Florida Bar’s Exhibit 11, it 15 indicates that you’re still holding $126,189.53. Is that 16 correct? 17 A It does, but it that’s exactly what it says. 18 We’re still going through with Buddy Lipford his we’re 19 trying to get some other things straightened out to make 20 sure that we have all the those ledger cards correct. 21 Q Okay. Is there a reason why this has not been 22 disbursed since it was a November 2015 closing? 23 A I believe they have been disbursed but after we 24 went through this process. 25 Q Okay. So you thought they were Page 79
1 A Yes. 2 Q but they’re not. 3 A Correct. 4 Q Okay. 5 A So I’m still working with him before I obviously 6 write any more checks or disburse any more funds, to make 7 sure we’re a hundred percent correct. 8 Q Can you tell me what that home warranty payments 9 are for? 10 A It’s Home Shield of America. I think they do 11 appliances when you purchase a home. And that’s who they 12 warranty for I think a year period when you purchase a home. 13 And we had sent them their own settlement statement and we 14 sent them a check for that, and that’s the one that then 15 started ACH’ing the account although I wasn’t supposed to 16 have ACH’s on that account. And then by the time I was able 17 to get ahold of somebody, they had already . . . 18 Q But that’s what the 42 was the 19 A Yes. Yes. So it was the total whatever that 20 adds up to was the total that the original check was for, 21 that they didn’t actually negotiate. They used that to get 22 the numbers for the ACH. And the representative said that 23 the homeowner had given them the information. I said that 24 was impossible because she’s the only person that didn’t get 25 a check out of the closing. ‘Cause she purchased. She Page 80
1 didn’t . . . you know. 2 Q Umhmm. Can you turn to page 146 through 148. 3 A I’m sorry. What? 4 Q 146 in Florida Bar’s Exhibit 12. Sorry. I’m 5 folding it back 6 A Oh, no. That’s okay. 7 Q and forth and . . . 8 Can you tell me what this is? 9 A It looks like a release and satisfaction of 10 mortgage. 11 Q Can you tell me why this wasn’t satisfied back in 12 2015, at the time of the closing? 13 A Not at this time, I can’t, no. 14 Q Do you know who paid this off? 15 A No, I do not. 16 Q Provide you what’s marked Florida Bar’s 17 Exhibit 14. 18 (The Florida Bar’s Exhibit No. 14 is tendered to 19 the witness for her review.) 20 BY MS. LEE: 21 Q Do you recognize these documents? 22 A Yes. 23 Q Can you tell me what the purpose of this SunTrust 24 account is? 25 A This SunTrust account was set up to do real Page 81
1 estate transactions. SunTrust had said for me to be be 2 able to do closings for them and to be one of their 3 preferred vendors, that I needed to do business with them. 4 Q And in this account, can you tell me who’s 5 authorized to make deposits and disbursements? 6 A I believe Melinda Collins was, as well as myself. 7 Q And on page 171 of Florida Bar’s Composite 14, 8 can you tell me who created this ledger? 9 A I believe it would have been Buddy Lipford and 10 Jennifer Taggart and myself. 11 Q If you could turn to page 172 through 174. Do 12 you recognize that ledger? 13 A Yeah. It looks like the general for the closing. 14 Q Okay. Did you prepare this document? 15 A It’s computergenerated through Attorneys’ 16 Closing Solutions, who help me do the closings and . . . 17 Q And what was this who was this closing for? 18 A It’s Jonathan Carter and William Lenihan. 19 Q Can you turn to page 176 through we’re looking 20 at 176 through 182. 21 A Yes. 22 Q Can you tell me, instead of issuing trust account 23 checks, why you issued official checks? 24 A At the time, we hadn’t got received the 25 checks, and then Christina Ennis (phonetic), who was the Page 82
1 my contact at SunTrust, said that they would not charge 2 anything if we came over with the disbursement ledgers, and 3 they would just do official checks instead of having to do 4 trust checks or wires. 5 Q Do you know if these checks were ever negotiated? 6 A No. Unfortunately not. 7 Q And how did you keep track of the outstanding 8 ones? 9 A Unfortunately, I didn’t. I just figured that it 10 was an official check, so the money was out. And so unless 11 we heard back, which we did on this one from I think it 12 was Bank of America, maybe, sent it back to us. 13 Q And that was 14 A because they have an estoppel letter. So we 15 just eventually resolved that. But they had provided an 16 estoppel letter, and that was the amount of the check that 17 was sent to them. 18 Q Okay. And if you’d turn to page 179. I believe 19 it was the check for 5,788.22. 20 A Yes. That was for Bank of America. 21 Q Okay. If you could turn to page 183. That also 22 reflects that it was returned and deposited back. 23 A Yes. It was returned because Bank of America 24 said it was not sufficient to satisfy their debt. And then 25 we provided them the estoppel letter where they had Page 83
1 indicated that was, in fact, the amount that was owed. 2 Mr. Lenihan and I resolved that. 3 And speaking of Bank of America, they tried to 4 tell him that his Key Lock (phonetic) even though that 5 was the payoff, there was an additional amount owed. But it 6 turns out that was for a car, which was not related to the 7 real estate. So they then ultimately agreed and accepted 8 it. They accepted the check. 9 Q Okay. Did you immediately reissue the payout 10 for that? 11 A I’d have to go back and look at my records. I 12 know we did it. I know we resolved it. I don’t know how 13 quickly. And I’d have to pull the actual file to see how 14 that was done. I just don’t recall. But I know he came 15 into my office at some point. 16 Q Okay. If you look at page we’re looking at 17 pages 184 through 190, but more specifically, if you’d turn 18 at first to 198. Can you tell me what that check was for? 19 A On page 198? 20 Q Umhmm. 21 A That is for Bank of America. Looks to be the 22 same amount as the 23 Q Umhmm. 24 A original. 25 Q Was that when you issued it to the bank? Page 84
1 A I don’t recall off the top of my head. But, I 2 mean, it was 3 Q The same amount. 4 A to Bank of America in the same amount, so I 5 would think that it was the same. 6 Q Okay. 7 A I do remember that we fought for a long you 8 know, went back and forth with Bank of America for a while. 9 So . . . 10 Q If you could turn to page 189 and 190. Do you 11 see that cash withdrawal in the amount of 5,000? 12 A Yes. 13 Q And then if you turn to page 191 and 192, there’s 14 another withdrawal, for $3,000. And then if you turn to 15 page 196 and 197, there’s another withdrawal. Is that 16 correct? 17 A The one for 4938? 18 Q Umhmm. 19 A That’s true. 20 Q Now, by November 15th, if you turn to right 21 the page before, do you see your balance activity? It was 22 at zero? 23 A My balance activity? 24 Q Umhmm. See that your the balance was at 25 zero? Page 85
1 A I’m sorry. Page 195? 2 Q 196. 3 A Oh. Sorry. 4 Q That’s okay. 5 A Yes. 6 Q Do you see that? 7 A Yes, I see that. 8 Q Okay. Do you understand that your trust account 9 was short because of the other withdrawals that you took? 10 A Yes. I see it on the statement. I don’t 11 know . . . 12 Q So by August I mean, October 31st, you only 13 had $4,938 and you still owed Bank of America about 5,078. 14 So you needed still $850 in order to pay them. 15 So if you turn to page 197. 16 A Right. 17 Q There’s what you had remaining, which is the 18 4,938, in your account. And then you had to add $850 19 A Oh. Eight hundred. 20 Q at the bottom, to be able to pay them. 21 A I see that. 22 Q Okay. Florida Bar’s 15. 23 (The Florida Bar’s Exhibit No. 15 is tendered to 24 the witness for her review.) 25 BY MS. LEE: Page 86
1 Q Do you recognize these checks? 2 A Yes. 3 Q Who is that? 4 A He’s a friend of mine that I’d done some work 5 for, and then he had lent me some money. 6 Q Can you tell me the name, because I can’t 7 A Oh. Per Perry. 8 Q Perry. Okay. 9 A Perry. Yeah. 10 Q Because we weren’t sure if it was Penny or Perry. 11 A Oh. Perry. Yeah. He’s a he’s a contractor. 12 Q Okay. And so each of those checks were a 13 contractor for what? 14 A He did some work on my house. But I believe 15 I’d have to go back and look at my records, but I believe at 16 one point I I got a loan from him for something. 17 Q Okay. 18 A I’d have to go back, ‘cause it was, oh, years 19 ago. But I’d have to go back and see. 20 Q Okay. 21 A I do have emails from him, so I can can check. 22 Q Was he a client at the time when you got the loan 23 from him? 24 A No. Just a friend. 25 Q Okay. If you’d turn to Florida Bar’s Exhibit 6. Page 87
1 We’re going way back. You see on the bottom, there is 2 on July 24th, 2014, it says, “Penny Wilson, Belle Isle 3 Creditor Payment.” Do you know why that would have been in 4 that ledger? 5 A No, I don’t. 6 Q You have no idea why? 7 A No. I mean, I’m sure if I went through all my 8 emails I could figure it out. I mean, we’ll we’ll do 9 that. 10 Q Did he have anything to do with Belle Isle? 11 A He is I know he has some relationship with 12 Belle Isle because he and I can’t remember his name, but 13 he’s Greco Realty. Travis is his first name. I can’t 14 remember his last name. But he and this other gentleman, 15 they used to own Piper’s downtown. And they also had a 16 second restaurant, Belle Isle Bayou. So I know that they’re 17 off the top of my head, I don’t know. But I can go back 18 and look in my emails, ‘cause I know that there’s some 19 connection with them. 20 Q Okay. Provide you what’s marked Florida Bar’s 21 Exhibit 16. 22 (The Florida Bar’s Exhibit No. 16 is tendered to 23 the witness for her review.) 24 BY MS. LEE: 25 Q Do you recognize these documents? Page 88
1 A Not the documents, but I know what they are. 2 Q In these statements, you certified that your 3 trust account was in compliance each year. Is that correct? 4 A Yes. 5 Q Do you still feel like they were in compliance 6 now, based upon . . . 7 A (Shakes head from side to side.) 8 Q Can you answer out loud for the record. 9 A No, they are not, after a thorough review with a 10 CPA. 11 Q Okay. 12 MS. LEE: I don’t have anything further at this 13 time. 14 Mr. Lindsey, do you have anything you want to add 15 on behalf of your client? 16 MR. LINDSEY: No. Just that she’s working with 17 an accountant now. She’s spent a lot of time reading 18 over Chapter 5, and she’ll answer the other. She’ll 19 find the answers to the questions that she could not 20 answer for you today. She’ll she’s made notes. And 21 we’ll provide you further information if you want us 22 to. 23 MS. ANDERSON: Should I make a comment? 24 MR. LINDSEY: What? 25 MS. ANDERSON: Should I make a comment? Page 89
1 MR. LINDSEY: Should you what? 2 MS. ANDERSON: Should I make a comment? 3 MR. LINDSEY: Sure. 4 MS. ANDERSON: I had none of this I didn’t 5 want any of this to happen. I thought I had everything 6 in place and I had gotten people onboard to help me, 7 because I don’t know anything about accounting. But I 8 certainly know a lot now from working with Buddy 9 Lipford and Jennifer so closely and learning all about 10 how to set up contra accounts and review 11 reconciliations. 12 And it’s absolutely my fault. I just didn’t 13 know, looking at reconciliations, what I was really 14 doing. And I just thought I had all those safeguards. 15 Obviously, I didn’t. And I erroneously thought with 16 all the different CPAs that I’ve paid over the years 17 that somebody would have caught it. And I know I 18 should have caught it. And I’ve made a lot of 19 mistakes. 20 And I think one of the things is having three 21 different trust accounts at a certain point just one 22 thing was put into another bucket, and then I took 23 and gave Stoneybrook, you know, just I doublepaid 24 them, and then I just relied upon other people saying 25 that they got the check. And I think Sentry stopped Page 90
1 payment on a check or they said they didn’t get a 2 check, so I wrote them one, and then it was two 3 payments that they got that they never accounted for. 4 And I just made I’ve learned a lot, and I made 5 a lot of stupid mistakes I shouldn’t have made, and I’m 6 really sorry. And I know by going forward that I’m 7 always going to have an eye on it, and especially with 8 Buddy Lipford and Jennifer Taggart helping, that this 9 mistake would never happen again, ‘cause I’ve learned 10 so much. 11 MR. LINDSEY: Thank you. 12 MS. LEE: Okay. This is a continuing 13 investigation. I don’t foresee us needing to take an 14 additional sworn statement, but just to let you know, 15 we may. 16 MS. ANDERSON: Okay. 17 MS. LEE: So we’ll go off record. 18 Do you want to read or waive? 19 MR. LINDSEY: She’ll read, I guess. 20 Thank you. 21 (Whereupon, on Wednesday, August 1, 2018, at 22 3:55 p.m., the foregoing proceeding was adjourned sine die.) 23 * * * * * * 24 25 Page 91
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MOTT, Certified Verbatim Reporter and Notary Public for the State of Florida at Large, certify that Elizabeth Jayne Anderson personally appeared before me and was duly sworn. Witness my hand and official seal this 13th day of August, 2018. Cert. No. NVRA ID #926 Notary Public State of Florida Notary Commission No. FF 185883 Commission Expiration: 3/10/19 Page 94 CERTIFICATE OF REPORTER STATE OF FLORIDA) ss: COUNTY OF ORANGE) I, RITA M. MOTT, Certified Verbatim Reporter and Notary Public for the State of Florida at Large, do hereby certify that I was authorized to and did report the sworn statement of Elizabeth Jane Anderson at the time and place designated and that the foregoing transcript is a true and complete record of the testimony given in that sworn statement. I further certify that I am not a relative, employee, attorney or counsel of any of the parties, nor am I a relative or employee of any of the parties' attorney or counsel connected with the action, nor do I have any financial interest in the outcome of the action. Dated this 13th day of August, 2018. Cert. No. NVRA ID #926 Notary PublicState of Florida Notary Commission No. FF 185883 Commission Expires 3/10/19 The Florida Bar Inquiry/Complaint Form DEC !. 8 2017 Tm: Ftm1.HlA !"l.,1z- \C.\7 PART ONE (See Page 1, PART ONE - Complainant Information.): TALLAHASSi:.:E, FLORIDA Your Name: ------~------~ Organization: Stoneybrook West Master Association, Inc. Address: 1201 Black Lake Blvd. City, State, Zip Code: Winter Garden, FL 34787 Telephone: 407-654-1500 E-mail: [email protected] ACAP Reference No.: ------~------~ Does this complaint pertain to a matter currently in litigation? Yes C No IX PART TWO (See Page 1, PART TWO -Attorney Information.): Attorney's Name: Elizabeth Anderson Florida Bar No.: ------6263 51 Address: 201 South Orange Avenue, Suite 900 City, State, Zip Code: _Or_lan_d_o-'-'...:::.F_L-"3__2...:::.8...:::.0=-1------'---- Telephone: 407-545-6437 PART THREE (See Page 1, PART THREE- Facts/Allegations.): The specific thing or things I am complaining about are: (attach additional sheets as necessary) The law firm of Anderson Hew was representing Stoneybrook West in all our legal actions and collection for a number ofyears. AH failed to provide reliable and consistent details to legal actions and collections taken towards homeowners and residents of Stoneybrook West who were in default oftheir Home OWner Association Fees. Details of collections were only provided once during the calender year of2017 and only after multipule requests. This was against our agreements with the AH firm and most of the information was inaccurate and outdated. AH collected dues from residents in default of their home owner association fees and did not report said amounts or any ledger to the community, even after several meetings and documented requests to her and her office. 1 Please see the· attached narrative. EXHIBIT C PART FOUR (See Page 1, PART FOUR-Witnesses.): The witnesses in support of my allegations are: [see attached sheet]. Stl.t Ia£t ~tt.SL of n ttrrtt:hVC/ PART FIVE (See Page 1, PART FIVE - Signature.): Under penalties of perjury, I declare that the foregoing facts are true, correct and complete. Vo).} 4L-l> T ~I OJ'aetfJr ~1~ 1;}.3/17 Dale / !i"1Yc# !f o~Elf 1 Drrttfo( ~7~ ll/!J/17 Stoneybrook West Master Association, Inc. (the "Association") believes Attorney Elizabeth Anderson (1) violated Rule 5-1 by failing to maintain the required trust account records, failing to properly account for the Association's funds that were or should have been held in her trust account, and it appears the Association's funds that were or should have been held in trust have been used for the benefit of: Attorney Anderson or her firm; (2) violated Rule 4-1.16(d) by failing to surrender papers and property upon her termination that the Association was entitled to receive and that were necessary to protect the Association's interests; and (3) violated Rule 4-1.4 by failing to keep the Association properly informed of: the status of: each matter she was handling for the Association. The facts supporting the foregoing assertions are as follows: On December 161 2013, the Association hired Elizabeth Anderson and the Anderson Legal Group, LLC (the "Firm") to provide various legal services, which included ·collections, legal opinions and general counsel, and representation in litigated matters. A copy of: the Contractual Agreement for Legal Services (the "Representation Agreement") is attached hereto as Attachment A. The Association paid a $2,000.00 retainer that was supposed to be held in the trust account. Pursuant to the Representation Agreement, the Firm was obligated to bill the Association every thirty (30) days. However, billing was essentially an annual event. Invoices were received by the Association once per year, the invoices included work that was supposedly completed in the previous year. Copies of: invoices are available upon request. At some point after the Association retained the Firm, Attorney Anderson ~oined Attorney Jessica Hew and started operating under Anderson Hew. The Association continued to deal with Attorney Anderson. In August 2017, the Association terminated Attorney Anderson and the Firm. The decision to terminate Attorney Anderson was made after it became apparent that little to no work was being done on the Association's files. Over the course of: the representation, only seven (7) lien foreclosures were commenced and none of: the cases were prosecuted. Service of: process was not completed on some files, the court dismissed some of: the cases for lack of: prosecution, and in one case the subject property changed ownership. Based on the timing of: the foreclosure filings, it appears they were commenced after the Association started to question the Firm's progress on the collection files. Following the termination, the Association did not receive an accounting of: the $2,000 retainer, nor was it refunded. As discussed in more detail below, Attorney Anderson has refused requests to turnover files and accounting records. Most significant is Attorney Anderson's refusal to provide trust account records for the Association's funds held in her trust account or the trust account for the firm of: Anderson Hew. Attorney Anderson regularly used her trust account to hold Association funds, and the only trust account records she has provided are incomplete and inaccurate. In August of: 2017, the Association hired the Saydah Law Firm ("SLF"), and SLF immediately attempted to determine the status of: the files that were with Attorney Anderson. SLF informed the Association of: the status of: the stagnant foreclosure suits. SLF requested Attorney Anderson to execute stipulations for the substitution of: counsel for the active cases, but Attorney Anderson either refused the request or failed to respond to the requests. Prior to her termination, Attorney Anderson provided the Association with vague, misleading and incorrect responses to the Association's inquiries about the progress of: each collection file. The email dated Thursday, July 6, 2017 4:30 P.M. between Elizabeth Anderson and Mike Piazza, the LCAM for the Association, (Attachment B) provides examples of: the inaccurate or misleading responses. Item 7 Sanchez- "foreclosure prepared and uploaded. Summons being issued and lined up for service to FCL." A search o:f:the docket for "Stoneybrook West Master Association, Inc." in Orange County, Florida indicates Attorney Anderson never filed a foreclosure lawsuit against a homeowner with the name of: Sanchez during the years 2015-2017. Thus, it is impossible for a summons to be issued, much less served on the homeowner. Items 21, 26, and 29 all indicate Attorney Anderson is proceeding with foreclosure, but as of: August, more than 2 months after she sent the email, no foreclosures were filed. On several other files, Attorney Anderson wrote that she had sent payments to the Association's management company but no payments appear on the ledgers. On June 9, 2017, prior to her termination, Attorney Anderson provided the Association a copy of: a document she called an "Escrow Ledger" (See Attachment C), which indicated the Firm was holding a total of: $63,641.02 in escrow. The Association subsequently learned the "Escrow Account" was one or more of: the Firm's trust accounts, and Attorney Anderson has refused to provide any o:f:the trust accounting records. SLF attempted to obtain copies of: the active collection files and other information necessary for the prompt continuation of: the representation. The information was initially requested via email, but after receiving little to no information, attorney Saydah wrote a letter dated August 17, 2017 (Attachment D). The letter requested a full trust account accounting, as well as, payment of: the $63,641.02 Attorney Anderson reported as being held in trust per the June 9, 2017 "Escrow Ledger" referenced above. On August 28, 2017, SLF had a courier go to Attorney Anderson's office to pick up the files, the trust funds and the files. However, Attorney Anderson only provided 2 trust account checks, another ledger, several checks from homeowners, and no case files. A copy of: the trust account checks and the "Escrow Ledger" provided with the checks is included as Attachment E. The two trust account checks total $49,089.10, which matches the total typed on the ledger. However, the actual sum of: the individual amounts listed on the ledger is $61,546. l 0. Attorney Anderson has refused to provide any documents to account for the $2,094.92 that was deducted from her June 9, 2017 escrow ledger, nor has she provided any documents to account for the $12,457.00 difference between the August 28, 2017 ledger total and the trust account checks. Thus, there is a total of:$14,551.92 of: Association funds apparently missing, and Attorney Anderson cannot or will not account for it. The 15 checks from homeowners provided on August 28, 2017 were apparently being held by Attorney Anderson and, without explanation, Attorney Anderson failed to negotiate the checks. Some checks dated back to October 2016, most of:the checks had expired, some were reissued by the homeowner due to it not being cashed in a timely manner, and some are endorsed on the back with her stamp for the trust account for deposit but were never deposited. Copies of: all o:f:the checks are available for review. For roughly 2 months SLF tried to get Attorney Anderson to provide the records necessary for the Association to simply continue with the files. Copies of: some of: the email exchanges between SLF and Attorney Anderson are included as Attachment F. After reviewing the limited information provided by Attorney Anderson and speaking with homeowners, it appears there is at least $25,000.00 of: homeowner payments not accounted for in any of: the documents provided by Attorney Anderson. In addition to the approximately $14,551.92 of: unaccounted for trust funds, there are numerous other payments made by owners to Attorney Anderson that were never received by the Association or its management company. Homeowners have provided SLF with bank records, including copies of: cashed checks, showing the checks were deposited into Attorney Anderson's trust account, but the payments do not appear on any documents provided by Attorney Anderson nor are the checks posted to the homeowner's accounts. Copies of the negotiated checks SLF obtained from homeowners are available upon request. On October 27, 2017, Attorney Anderson finally provide the files to SLF. As we try to piece together what happened, the Association has learned that Attorney Anderson was settling debts with homeowners by waiving principal, interest, costs, and attorney's fees without the Association's consent and without even presenting the settlement offer to the Association. The Association is still uncovering funds received by Attorney Anderson that were deposited into her trust account, but never provided to the Association. Attachment G is a copy of an email to Attorney Anderson with copies of checks totaling $5,394.00 that were deposited into the Anderson Hew trust account in August 2017. The payments do not appear on any documents or ledgers provided by Attorney Anderson. Attorney Anderson made no mention of the funds until SLF learned ofthe payment, and inquired about the funds. Attachment His another example of funds ($2,589.50) deposited into Attorney Anderson's trust account that were not disclosed or provided to the Association. Attorney Anderson's failure to provide records and the inaccuracy of the provided records harmed the Association. The Association has and continues to incur fees and costs to sort through each file that was with Attorney Anderson's office, and the Association will be forced to compromise on some of its claims unless it receives the accounting information from Anderson. Witnesses 1. Neil A. Saydah 2. Mike Piazza 3. Natasha Takhsha 4. Robert Kasch 5. Donald J. Ross THE ANDERSON LEGAL GROUP, LLC 201 S. ORANGE AVE., SUITE 900 ORLANDO, FLORIDA 32801 CONTRACTUALAGREEMENTFORLEGALSERVICES TIIIS AGREEMENT dated thi.s ~fDecember. 2013, between The Anderson Legal Group, LLC ("Attorney") and STONEYBROOK WEST MASTER ASSOCIATION, INC. ("Client"). This is a contract for legal services to be rendered by the Attorney to the Client. A. It is deemed to be in the best interest ofboth the Client and the Attorney to have a firm and complete understanding of the scope of authority of both the Attorney and the Client with respect to the legal services being rendered, and B. It is further deemed to be in the best interest OD the Client and the Attorney to have a firm and complete understanding as to the fees and costs oDthe services being rendered. TIIEREFORE, in consideration of the promises contained herein, together with good and valuable consideration, the Attorney and the Client agree as follows: 1. NATURE OF SERVICE (a) Client employs the Attorney to represent the Client's interest in representation of Homeowners' Association matters, including, but not limited to, collections, claims of lien, foreclosures, workouts, mediation, violations OD the Declaration of Covenants and Restrictions, as amended and as may be amended, and any other legal issues within the HOA that the Board oD Directors deem necessary. (b) This Agreement does not cover any other Client matter either previously undertaken or to be undertaken by the Attorney. 2. COMPENSATION. For the services rendered by the Attorney, the Client hereby agrees to pay the following: (a) The rate charged by Elizabeth J. Anderson, Attorney, is $325.00 per hour. The rate charged by Associate Attorneys is $285.00 per hour. Paralegals are charged at a rate ranging from $95.00- $125.00, based upon experience. Legal services performed shall be billed to Client in 1110 OD an hour increments at the above stated hourly rate. In addition to legal fees, Client also agrees to pay all reasonable expenses incurred by Attorney in this matter. Such reasonable costs or expenses may include any and all necessary, or ordinary, or extraordinary expenses, including but not limited to the following: postage, photocopy charges, long distance telephone calls, reasonable personal and travel expenses incurred by the Attorney· related to the Client's matter, filing fees, recording OD documents or legal papers, witness fees, court reporter . fees, costs for messenger delivery service, facsimile fee, research service fees, obtaining copies oD necessary documents and/or transcripts, and costs of experts and investigators and associate counsel when needed. Uncontested foreclosure matters will be at a flat rate fee of $1800.00, exclusive of court filing fees and costs. (b) Client agrees to provide Attorney with retainer in the sum of $2,000.00 to be placed in The Anderson Legal Group Trust Account. Client agrees and represents that all monies paid to the firm have come from a legitimate source. Client agrees and understands· that said retainer shall be billed for legal services performed and for reimbursement of expenses incurred on behalf of Client. Client agrees and understands that such billing statement shall occur monthly with a copy of such forwarded to Client for their records. In the event this matter is resolved prior to exhausting Client's initial retainer·deposit, any such remaining funds after deducting proper fees and expenses, shall be promptly returned to Client. In the event this matter is not resolved prior to exhausting Client's initial retainer deposit, Client agrees and understands that Attorney will send Client a billing statement (in accordance with the hourly rate and expense reimbursement agreement as mentioned above) on a monthly cycle to be paid within 30 days days of Client's receipt (c) Unpaid legal fees and expenses, if not paid within 30 days from the statement's date shall accrue interest at the rate of eight (8) percent per annum until paid. (d) Responsibility to provide legal services will be accepted and work will begin when Attorney receives the initial retainer deposit mentioned above. (e) Attorney has the right to cease legal work and withdraw from representing the Client and keep all funds received for legal services and expenses if Client does not make payments as requested by Attorney. (t) Any sums collected on behalf of the Client, when received by Attorney, shall be first credited against Client's obligation to Attorney. (g) No promise or guarantee has been made as to the outcome ofthis matter. 3. RIGHTS TO TERMINATE REPRESENTATION: (a) The Client reserves the unilateral right to terminate Attorney's representation at any time for any reason by giving written notice to Attorney. Client shall cooperate with Attorney if necessary to effectuate his formal withdrawal from any proceeding(s). Client shall be obliged to promptly pay for all costs and expenses incurred through the time ofwithdrawal. (b) The Attorney reserves the unilateral right to withdraw as Attorney of record and to cease any further actions or representation on behalf of the Client in the event of any of the following: (i) The Client fails or ceases to communicate or cooperate with the Attorney in the handling of this matter. Stoneybrook West Master Assoc. Retainer Agreement December I 6, 2013 Page2of5 (ii) The Client fails to pay the Attorney in accordance with the terms ofi this Agreement (iii) A conflict ofiinterest arises. (iv) Client has misrepresented or failed to disclose material facts to the firm. (v) By mutual agreement ofithe Attorney and Client that it is in the best interest of the Client for the Attorney to withdraw. (vi) Irreconcilable differences arise between the Client and the Attorney. In any of the above situations, the Attorneys shall have the unequivocal right to withdraw from representing the Client in this case. Further, the Client agrees to execute a stipulation for the withdrawal and/or substitution oficounsel at the request ofthe Attorneys. 4. DISPUTE AS TO ATTORNEY'S FEES/COLLECTION OF FEES (a) Any controversy or claim arising out ofi or relating to a fee charged pursuant to this Agreement shall be settled by arbitration under Chapter 682, Florida Statutes. Judgment upon the award rendered may be entered in any court having competent ~urisdiction. (b) Should the Attorney find it necessary to resort to litigation in order to collect the attorneys' fees and expenses owed pursuant to this Agreement, the Client shall be liable for reasonable attorneys' fees, costs, and expenses thereby incurred. Venue for any action shall be in Orange County, Florida. Any objections to venue and personal ~urisdiction are hereby expressly waived. 5. OFFERS OF COMPROMISE: Ifi the matter for which the Client has retained the Attorney involves any offer of compromise settlement, then such offer shall be conveyed by the Attorney to the Client, together with any recommendations ofi the Attorney; or by the Client to the Attorney with any instructions or recommendations of the Client. Neither party shall enter into any agreement for the compromise or settlement ofi any claim arising out of or based upon the matter without the written consent ofiboth the Client and the Attorney. 6. ADDITIONAL DUTIES AND RESPONSIBILITIES: (a) Client (i) All major decisions affecting the matter(s) undertaken shall be made by the Client in a timely manner. For example, requested decisions on offers to settle or compromise; the expenditure ofi funds, the hiring ofi experts or consultants shall be made within the time set forth in the communication discussing the same or a reasonable time ifi not set forth therein; documents sent to the Client for review and comment shall be returned to Attorney within five (5) days ofitheir sending, unless another time is specified; requests for appointments for formal Stoneybrook West Master Assoc. Retainer A'gl'eement December 16, 2013 Page3ofS conference vvill be finalized with the Attorney's office within five (5) business days of the request being communicated to Client, unless another time is set forth therein. (ii) Client is encouraged to call or to make an appointment to discuss with Attorney any Client concern about any matter or problem when it arises; especially those relating to the method or manner of Attorney's (or staff's) handling or failure to handle any Client problem. (b) Attorney (i) Attorney shall make themselves reasonably available to see or speak with Client. Client may come to Attorney's office during normal hours without an appointment subject to Attorney's unavailability due to prior scheduled appointments. Client is encouraged to call before coming to ensure Attorney is available to meet. Attorney's practice is and shall continue to be to return every Client call or email within a 48 hour period. (ii) Attorney is authorized to file and/or defend suit, engage the services of associate counsel, contracted counsel, and other outside counsel and use the Client's name in all legal proceedings. The Attorney has power to execute all documents connected with the Client's claim. 7. ATTORNEY'S LIEN: The Parties agree ·that the Attorney shall have a lien against any sums recovered on behalf of the Client arising out of the contemplated matter in an amount equal to the Attorney's fees earned by the Attorney and reimbursement of costs incurred by the Attorney in discharge of bis duties for and on behalf of the Client. 8. OFFICE'S FILES: The office files of the Attorney, exclusive of documents and materials furnished by the Client, will be considered its work product, and the Attorney will represent the Client to the best of his/her ability consistent with all professional standards of competence and integrity. It is further understood by the Client that no warranties have been made regarding the ultimate success of the matter(s) undertaken. Unless specifically stated, the payment of the fees incurred is not dependent upon any legal result. 9. VENUE: The parties agree that any dispute resolution, enforcement, or action under this Fee Agreement shall be in Orange County, Florida. The Client acknowledges having read· and understood this Agreement, and has received a copy of it. Stoneybrook West Master Assoc; Retainer Agreement December I6, 2013 Page4of5 TAX DISCLOSURE AND ACKNOWLEDGMENT: THE CLIENT IS ADVISED TO OBTAIN INDEPENDENT AND COMPETENT TAX ADVICE REGARDING THESE LEGAL MATTERS SINCE LEGAL TRANSACTIONS CAN GIVE RISE TO TAX CONSEQUENCES. THE CLIENT FURTHER AGREES AND UNDERSTANDS THAT ATTORNEY HAS NOT AGREED TO RENDER ANY TAX ADVICE AND IS NOT RESPONSIBLE FOR ANY ADVICE REGARDING TAX MATTERS OR PREPARATION OF TAX RETURNS, OR OTHER FILINGS, INCLUDING, BUT NOT LIMITED TO, STATE AND FEDERAL INHERITANCE TAX AND INCOME TAX RETURNS. Client has read this Agreement and agrees to each of1he terms and conditions stated in it. SIGNED AND ACCEPTED by the Board of the Association per meeting minutes this 16th day of December, 2013. CLIENT: Stoneybrook West Master ATTORNEY: The Anderson Legal Group, LLC Association, Inc. ~ (f?.~~"J. ' By Vietor Treutel, ///() /'(.1-1/rjV A._6 IJ On behalf of Stoneybrook West Master Assocation, Inc. Dated: \.-.;)- ( lto l (S Stoneybrook West Master A:ssoc. Retainer Agreement December 16, 2013 Page5of5 From: Elizabeth Anderson [mailto:[email protected]] Sent: Thursday, July 06, 2017 4:30 PM To: Mike Piazza Subject: RE; List Mike: see my comments Per our conversation this is what you wanted before we meet. AOKINS-The last payment listed is 1/17. The last notes indicate receipt of a 2/28 chk for $997 and that 1 more payment would make them current. Internal notes say nsent to FSR on 4/28n, but we still show a $5,660 balance. How can we track down that disbursement? The Check was sent on 4/28 and we are not showing it was negotiated. We will issue another one, cancel the one issued and drop it off at the office. 2. JONES & DAVID - Board approved a $350- 24-36 mo PP if reduce all fees at the 5/18/17 Closed Board Meeting (CBM)/Conf Call, but I see no notes about that on the 6/5/17 collections report, and we're still showing a $7,029 balance. Why were there no notes over 2 weeks after that closed BOD Mtg, and what is the status right now? If that plan wasn't approved Liz was supposed to move for a MSJ the week of May 22nd & file a 20 day notice of hearing. Court was to set a hearing in 30 days, and judge 45 days (I was jotting notes as fast as I could). Did any of that happen? Please provide paperwork to confirm. The Board approved the Plan and Owner has the payment plan documents, has agreed to terms and her first payment is July 10 after she gets paid. 3. FARIA- FSR has them on our Bankruptcy list (BK) - $27,688. What is your process for monitoring bankruptcies Liz? I recommend we color code bankruptcies a different color if we're not actively pursuing collections on them so we 3 .can quickly ID these cases. The board approved Liz filing a motion for relief from stay atthe 5/18/17 CBM, but I don't ee any notes about that on the 6/5/17 report. Did that happen? (20 days then order bankruptcy court the next day, hen FC procedure). Debtor plan pending before the court with monthly payment to HOA at $688 for remainder of this year (only for arrears) nd then Plan $883.05 for duration of plan (concluding 5/2022) total pay on pre-petition arrears $36,301.60. 4. RUPSINGH - $944 balance, but FSR has them on a PP List, and they had $0 balance on 9/15/15 & 2/26/16, so I believe they should be removed from your list, Liz and put on a CLOSED CASE LIST. FSR recently sent the check to us again; being returned so remove from list 5. MS& T Bank - $4, 798 - We've got them on our Third Party (TP)(Axiom) list, so I think they should be removed to a Closed/Disbursed list or an AXIOM LIST (from their 1/15 collections case), but your report doesn't say how much was disbursed - can you tell me that figure? (SH adjustment). This has always been a foreclosure active at this office. $2552.56 was sent with the distribution form setting forth the break down of Safe harbor 6. WEBBER - $7,044 - Liz has them on a 22 mo PP starting 8/16, but there are notes about missing payment contacts March-May and the last payment noted is Feb, although there's a note about receiving a late April payment, but no amount was noted. Is the HO on pace? If not, foreclosure action should have started. Please advise. Webber has only paid $650 and his FCL was dismissed; letter sent violation/default agreement and complaint prepared and awaiting summons to issue to foreclose. 7. SANCHEZ -$13,802 - Last payment (on a 22 mo plan) noted was 11/16 and board approved FC at 5/18 CBM (order title report 5/19 +2 days= file Wed/Thurs), but no notes on 6/5/17 report. Did any of that happen? That was over a month ago. Foreclosure prepared and uploaded - summons being issued and lined up for service to fcl. 8. CYR - $18,693 -There are no figures in the dollar amount columns on the collections report from 12/15. The "Current" field has some notes about a 12/16 mediation, a 1/17 court hearing, consent to FCL judgement by HO and a 4/17 sale date, but we have no idea where this case is 2 months later. Please advise and note on the report. , Bank sale - bank owned; on 6/29/2017 HOA Specialist requested payoff under safe harbor and estoppel letter rrepared and sent. p. PATEL - $9,388 -The last note was a 4/23 record LP & serve, but 2 months later we have no update. There's also a 6 month gap between their 10/16 payment and the 4/16 12L. What was happening? 9.5 NY MELLON TRUST - $8,923 (9/15) - Collection report notes a Capital Contribution (CC) that needs to be removed from the ledger since it was a bank foreclosure - Donna, can you take care of that? (note - this is a Safe Harbor) need to confirm this was done; also balance needs to be adjusted for safe harbor. 110. QUEEMAN- $0 BALANCE IN FSR AS OF 11/9/15 - MOVE TO CLOSED LIST FL LAND - $0 BALANCE IN FSR AS OF 4/2/15 - MOVE TO CLOSED LIST MITCHELL -$20 BALANCE-5/11/17; $508 BALANCE -6/9/19- MOVE TO CLOSED LIST (5/18/18 notes say check as across the street and Liz would disburse) 13. GRANT- $3,906-0n FSR's BK List. Are you monitoring? Let's color code. 4 Yes, monitoring BK 14. PINEDA- $6,013- Notes say PP current 4/17, but the last payment recorded is 12/16. We need payments noted on the report. When does the HOA receive any of these funds? FSR has been sending us the payment back from what I have. Readjusting ledger to write off the extras since they are on a plan will verify what date they will be complete and disburse. 15. DASTAJIR - $6,159- BK (Ch 13-Reorg- pre-petition into PP. New assessments should be paid on time, but they're not)- Payments to HOA/FSR? What do we do? Ifthey re not current on post-petition, we notify debtor and file the NIL; 16. DOWDAT - $5,304- Last PP entry 7/16. Notes say got behind on PP but back on track 4/27, but no payments are listed in a year? The reporting needs to be better on these. He mailed in payment and is current with Plan; he will be finished in approx. 5 months 17. MESSENGUER -$4,074- BK- Donna: Re-classify? See Liz's Internal notes. What do we need to do? File a claim per claim date (I have prepared) also seeking move for relief from stay to FCL lein 18. BEECHER - $4,447- Last payment noted was 4/16???? Partial disbursement noted, but no dollar amount. FSR reflects $495 & $489-2/28/17. I will pull the disbursement sheet FSR got; we have another disbursement to make and owner is ha If way through . 19. MASON -$0 BALANCE AS OF 4/1/17 (E-CHK-3/24/17) - MOVE TO CLOSED LIST (ACR-$4,667-7/8/16) 20. SINGH - $22,174- Purchased 12/16. Liz's notes indicate a SH adjustment needed. MP emailed Donna & Liz 6/23 4:44pm after months of prior emails. I believe we're still waiting for an adjustment amount. This was done I believe - the disbursement sheets have the SH amount on them. Need to pay close attention to Safe Harbor files and I need some explanation as to the Credit/add on/back off that are on many files 21. SUKHNANDAN - $5,950-Starting in 7/16- PP stopped after 2 payments. #Failures to processn Oct & Nov. There's a note about a 5/1 FCL of COL filing. It's been almost a year. Has that happened? No update on the 6/5/17 collections report. Owner sent new letter demanding payment in full due to default; set to file fcl 7/12 22. SURIEL - $7,588- BK- (Notes say Received $34,889, but the lines on the report may be off and that is for #23). If it's still in BK is it being monitored? Color code &/or move to a different list. that is off- I was able to collect $34k for the HOA from the Lender despite Safe Harbor, less fees for that - $32k to HOA . Yes, BK being monitored. 23. THOMPSON - $41,506- PAYOFF-$32,448 TO FSR-6/21/17. MOVE TO CLOSED LIST 24. MITCHELL - $9,667 - Last payment noted is January. There are notes about Feb & April, but no notes confirming any payments, attempts to contact, or foreclosure action. Need better follow up. Solid update expected by end ofJune. $3,400 in escrow; owner left message to have payment submitted 25. DUNN - $6,987 - BK 13 is noted and SALE REST are noted, as well as a 5/15/17 note to monitor order entry granting sale reschedule. What's the status Liz? court denied bank motion to reset the sale; Dunn has sent a letter disputing amounts owed; we have sent her a ledger and are moving forward to recording COL after her time expires to respond Her BK was thrown out. 26. SWART- $5,672 -June collection report nots a hardship related to daughter's illness last October, and a good faith payment in Feb, but there are no notes since Feb??? Have any attempts been made to reach this owner since then? These need to be acted on and reported on at least monthly. Moving to FCL filing since he failed to pay. 5 27. RAMPERSAUD - $5,633 - Last payment recorded on grid was 1/16, but there are notes indicating payments Feb, Mar & Apr, but none since???? My notes from the 5/19/17 CBM say sent email DL-5/19 or FC. Liz to call too. Did that happen? There were no updates on the June report. We received 2 more payments from him june 18 and 30th. 1 128. DEUTSCHE BK-$44,281-PAYOFF $2,265 TO FSR 6/21/17-SH. MOVE TO CLOSED LIST PLEASE make sure to correctly account for safe harbor as per the sheet indicated. 29. BECKFORD - $31,986 - BK 6x & delinquent on current assessments. The board approved the filing of a motion for relief from stay to FC at the 5/18/17 CBM, but there are were no notes on the 6/5 report. Did that happen? The board would like to see the paperwork on that. (note - lots of violations on that property so we really want a resolution). He was kicked out of BK- moving forward with straight FCL 30.' LANDT - $53,889- BK & Owner death. Notes say HO sent deed. Did you receive that? What's next step & when? Per conversation - no deed as he is dead. Working with realtor and bank to try and come to some resolution. Need to see what BOA is willing to pay towards arrears for a short sale contract pending to close. Last conversation was Monday july 3 with realtor and other parties . 31. FRAN KETTI - $7,070 (4/14)- BK - Let's color code. What's the monitoring process and timeline? Debtor became behind again on Trustee payments Withdrawal ojiMotion to Dismissifor Failure to Maintain Timely Plan Payments. Filed by Trustee Laurie K Weatherford (Motion to Dismiss Case for Failure to Maintain Timely Plan Payments. Debtor has 21 days to bring current or case dismissed. May-Withdrawal ojiMotion to Dismissifor Failure to Maintain Timely Plan Payments. Filed by Trustee Laurie K Weatherford Should be getting payment from Trustee in the next few days once she processes them. 32. GIOIA- $11,517 -We've got this coded as TP (Axiom) & Axiom has a note saying ASSN ATTNY. I guess I need to tell Axiom to proceed on this one since the board indicated they would be handling foreclosures since last Fall, so let's move this to another list called "TO AXIOMu. We had already drafted it and was ready to file, you indicated it as with Axiom so not sure why it is on this list for me to respond to? 93. ANTONOS-$22 balance - We've got them on our CLOSED COLLECTIONS list (CL) from a 5/10/17 Axiom payoff, so let's move them to the Axiom list. why is this on my list? 4. ORTIZ - $6,277 (7 /14) - Lots of notes, but no resolution in 2 years. Last note is from Feb saying spoke to HO so said hey were remitting entire past due balance that week and then make the lQ 2017 payment, but no notes since hen. There are some notes about a SH write-off not showing-What exactly needs to happen here? And why isn't this ~ eing followed-up on? If Donna needs a SH write-off amount please email that amount to me and Donna. This was all sent over in 2015 with the estoppel letter and SH breakdown. I will get with Donna again to get this done 35. FEBRY - $116-We've got it classified as CLOSED COLLECTIONS (CC) as of a 4/26/17 Axiom adjustment. MOVE TO AXIOM LIST TORRANCE - $599 - 5/22/17 AFTER ADDITIONAL FUNDS AXIOM - $5,367 - 4/10/17. MOVE TO AXIOM LIST CHORNEY - $6,764-At Axiom/TP - MOVE TO AXIOM LIST 6 38. MARTINO - $45,438- Last note-2/15 - sent deed to HO again asking to get it to Liz ASAP. No notes in 4 months. Why? 39. SONGER ESTATE - $11,103- Donna -We've got this coded as TP but it's not on their report. Please change that to AT. HO deceased. FYI -Our system notes: Sent certificate of sale to corp as WO in closing Doc waiting to see if approved- 6/23/17. Do we need to do anything else with this account Liz? It has been a FCL since FSR began. It is an estate; it was already just sold to Bank June 6th 40. AUSTIN - $38,048- Huge balance. 3 yr PP approved 10/16. 3 payments noted through 2/17. Notes about shortening plan w/tax refund in 1/16, and a 2/27 note about reaching the HO, but no real definitive status reported in 4 months. These need follow-up monthly if not more frequently. She is still waiting on refund; been speaking with her and she is coming in next week 41. PENUELA-$3,654 {1/16)- Issues going back to Sentry. 4 mo PP finalized 5/15/17, but no payments listed. Seems to have taken 17 months with no FC or BK involved and we still don't have any funds on this account. How does this happen? They sent us payments and then FSR started sending their payments to us so now we have $1397 in escrow, since they now are charged more, we need to get them on. FSR sends checks back to us that is how it happens and we are now collecting additional amounts through demanding it from owner plus the other fees we now expended 42. POWELL -$66 - We've got them in our Demand Letter {OM) classification - MOVE TO CLOSED LIST 43. PRESS - $8,233 -Axiom has them - MOVE TO AXIOM LIST (Liz was having us watch for occupants, but I don't think that's necessary anymore) 44. VILLEGAS - $7,800- Numerous emails that I was copied on. Supposedly PP is in motion, but I'd like a status report. Waiting on them to agree to terms so I can draft agreement 45. MCKEEVER - $5,890- Last payment reported - Feb. 2/17-Bank FCL pending. 3/17-Not of Desg filed by counsel?. 5/2-f/u on TCWw/P atty??? No update on June report. Status??? Mckeever sent payment to us; waiting still on Bank Lawyer 46. CHO - $9,591- Last payment on list- March but note about an Apr payment. No mention of term of PP and no update for 2 months. He is up to date on payments under plan; payment to FSR was sent to us. 47. GOODMAN - $16,876- PAYOFF $1,904 TO FSR 6/21 (SH) - MOVE TO CLOSED LIST NO DO NOT MOVE GOODMAN OFF THE LIST!! HE IS ON A LONG TERM PLAN 48. There was an erroneous line numbering here. Disregard. 49. SULLINS -$8,311- Notes reference Axiom 2/3, but not at Axiom. BOD instructions needed. 50. SATMAL-$0 Balance-1/17/17-Axiom disbursement-$4,258. MOVE TO AXIOM LIST 51. CHERRY - $5,192- PP/FCL. 4/3 note says current w/PP but Last payment noted is 1/17??? 52. GOODWIN - $20,757 -Another huge balance. PP default- last payment 12/16. Major medical. June note: Deed in lieu -BOD approved at 5/18/17 CBM. If not agreed- FC. Status? HE IS PAYING ON A PLAN AND WE HAVE RECEIVED CATCH UP PAYMENTS. 53. COSSE FREIRE {RIBIERO) - $6,241- Donna, we've got this one under TP, but they've got it under "Paid Invoice" which means it came back to the HOA, so please change to AT. Liz-They made a few payments then defaulted in 11/16. You've got a note re NOIF sent, but no dates. Then 4/23 - monitor paylink by owner. Where are we? Debtor was in BK but got dismissed; demand letter sent them advising the BK dismissal doesn't impact debt owed. Made 2 payments via lawlink and were declined. Prepared COL 54. ASA UNITED FL-$12,941 {4/14)-This one goes back to 4/14 {I don't know ifthat's 2014 or April 14th of 2015). 1/17 Short sale apparently never happened. Liz provided a new estoppel in 4/17. Status??? WHAT PROPERTY IS ASA UNITED ON PLEASE 55. JONES - $5,924- (2/16) - PP, but no payments listed. 4/15 note to f/u on PP & question on correct owner???? 56. BANTON - $10,682- PP noted, but no mention ofterm-(months, years). At $245/mo as noted it would take 3.5 yrs. Notes indicate on pace. Has HOA received any of those funds? If so, how much and when? 7 'I HAVE TO MAKE THE ADJUSTMENT ON HER LEDGER since SHE PAYS EVERY MONTH ON AUTOPAY FROM CHASE. SHE IS ·oNTRACk. 57. ABUKOUSH -$24,310-Supposedly paid off 3/17, but no funds received as of 6/2/17. Payment by credit card so my notes say Liz was waiting 90 days= 6/17. How much exactly? I think the board would like to know. Please disburse immediately if the above is correct. AS PER MANY EMAILS, A PRIOR BOARD APPROVED A LONG TERM PLAN AND A REDUCTION TO 7K. ANY INTEREST THAT HAS BEEN ACCURING OR LATE FEES NEED TO BE REMOVED AS THOSE ARE NOTTO BE CHARGED IN THE FIRST PLACE-FSR SHOULD NOT HAVE PUT THEM ON AS I SAID THIS FROM DAY ONE 58. MELL0-$21,878- PAYOFF $10,184 TO FSR 6/21 (SH)- MOVE TO CLOSED UST yes, 8 OWNER ADDnESS AMOUNT IN ESCROW Abukoush, Zahran 15139 Spinnaker Cove ln 7493 Adkins, Virgil 15363 Amberbeam Blvd 9132 Austin, Donna 14832 Masthead Landlns 1832 Banton, Saffron 2627 Slagrove Ct 6186 BookforEI, Mark 13716 Fox Glove St S15.21 Beecher, Oennis 1257 Castleport Bd 2631 9orrero, Carlos/Perez, Aixa 2221 Oakington St 401 Charry, Damu 1249 Selbydon Way 2594 Cho, Bum 15355 Pebble Rid3e St 183.91 Oastajir, lmran 2541 Black Lake Blvd 3626 Oowdat, Rajendranauth 2S46 Black Lako Blvd 3148.97 Dunn, Norma 13249 Fpx Glove St 1505 ~ Franketti, loo & Oaboyba 1376S Fox Glove St 900.44 Freire, Ana 1472 Selbydon Way 733.58 S· Goodman, Michaol & Elizabeth 15420 Pebble Ridge St 3803.32 Goodwin, Vinoent 1302 Selbydon Way 680 3("\) Grant, Osbourne & Sharon 2118 Blalk lake Blvd 1002.45 ~ McKeever, David 15301 Pebble Ridge St 3032 0. Mitcholl, Stophen 13231 Fox Glove St 3495 Patel, Bhavesh 2399 Baronsmedo Ct 1386 Penuela, Maria 14845 Masthead Landing 1397 Pinoda, Juan 2314 Black Lake 31vd 252~.15 Ramporsaud, Latchman 13521 Fox Glove St 2042 Sin3h, Tennyson 14000 Earlsmede Ct 977.5. Sanchez, Carolina 2738 Balforn Tower Way 700 Sukhnandan,Doodnauth 13346 Eylswood Dr 1182.0S Suriel, Mi5uol 13115 Fox Glove St 781.44 Torres, 9lanoa 1353:3 Fox Glove St 1247 Villesas, Juan 2454 Oakington St 3550 AMOUNT IN ESCROW OWNER ADDRESS Wobbor, Khadija 2702 Balforn Tower Way 650 63641.02 2572 West S.R. 426 Sui1&3024 Oviedo, Florida 32765 Phone: (407) 956-1080 Fax: (407) 956-1081 www.SaydahLawFlrm.c:om Attorneys at Law August 17, 2017 Via U.S. Mail and Electronic Mail: Elizabeth Anderson, Esq. Anderson Hew 201 S. Orange Avenue Suite 900 Orlando, FL 32801 . [email protected] RE: Stoneybrook West Master Association, Inc. ("SBW") Dear Liz: I tried to reach you via phone to discuss the SBW file transfer, but you were not available. SBW is attempting to move forward with collections and provide estoppel certificates, but it is impossible because we are missing essential information. Enclosed with this letter is a list ofi the files identified by address for SBW and Joint Stipulations for the substitution ofi counsel. The essential information for the listed files, which should be readily available, includes the following: 1. Itemized invoices ofithe attorney's fees and costs bill by your firm to each file. 2. Copies ofi the settlement agreements or payment plans for each file where a homeowner entered into a payment plan. 3. Ledgers for each file on a payment plan that show the date and amount each payment made, as well as, whether the payment was deposited in escrow or sent to First Service. 4. Ledger for each file where funds were held in escrow or trust for the Association that shows the date and amount ofi each payment by the homeowner, the date and amount ofi each withdrawal from the homeowner' s escrow account, and the payee for each withdrawal. 5. Copies ofi all documents pertaining to each file which include any collections letters, copies oficlaim ofiliens, correspondence from the homeowner, litigation documents, etc. 6. Copies ofiall checks sent to First Service Residential on or about August 7, 2017 for the distribution ofithe amounts held in escrow, including any instructions sent to First Service Residential on how to apply the payments to the account. Without the foregoing information, SBW is unable to verify homeowner claims that they are current on the payment plans or settlement agreement, SBW is unable verify terms ofi the (00051028.1) . Atto.chment D Page2 August 17, 2017 Elizabeth Anderson .payment plans and settlement agreements, and SBW is unable to verify amounts paid pursuant to the payment plans or settlement agreement. Additionally, SBW is unable to provide estoppel certificates, pay offs, collect attorney's fees and costs billed by your firm on any ofithe accounts, and determine ifithe proper amount ofiinterest on each account. Over the past few weeks, my paralegal, Karleen, made multiple requests for your firm to provide copies ofi the all SBW files, as well as, the specific information listed above. Those requests resulted in the production ofi only 8 or 9 files and a document that is purportedly the Escrow Account ledger for the SBW payment plan files. The ledger only shows totals for each homeowner with no breakdown ofi when a payment was received, the amount ofi the payment, or how the payment was to be applied to the debt (i.e. interest, late fees, costs, attorney's fees or assessments). SBW does not want to wait any longer for your firm to produce complete and accurate files, and the delay is harming SBW. Unless you provide your firm's fees and costs billed to each file within the next seven days, SBW will assume there are no any outstanding fees or costs incurred on each file. SBW will then pr.oceed with collections based on the inf.ormation in its possession, and it will not pay any fees or costs to your firm that it cannot collect. If~ within the next seven days, your firm does not provide an accurate acc:ounting of each payment plan and settlement agreement along with the terms ofi each payment plan or settlement agreement, SBW will be forced to incur additional fees and costs to investigate each payment plan and settlement agreement. SBW intends to look to your firm to recover any fees incurred as a result ofi the failure to deliver the necessary and relevant information, as well as, any fees .it may have paid your firm and cannot recovered as a result ofi your firm's failure to provide the necessary information. I am hopeful that you will be able to provide the requested information in a timely manner. Ifi you have any questions regarding the foregoing, please contact me. cc: Mike Piazza, CAM (00051028.1) Main Office lily AppointmentOnly 2572 West S.R. 428 121 S. OrangeAve. Phone: (407) 958-1080 Suite 3024 Suite 1500 Fax: (407) lilSEl-1081 OVledo, Florida 32785 Orlando, Florida 32801 www.8aydllh~.com -.J ·1 ts OWNER ' ADDRESS AMOUNT IN ESCROW Abukoush, Zahran 13139 Spinnaker Cove Ln 7493 Adkins, Virgil 15363 Amberbeam Blvd 3132 Austin, Donna 14832 Masthead Landine 1832 Santon, Saffron 2627 Slagrove Ct 5186 Beckford, Mark 13716 Fox Glove St 516.21 Beechei, Dennis 1257 Castleport Rd 2631 Borrero, Carlos/Perez, Aixa 2221 Oakington St 401 Cherry, Damu 1243 Selbydon Way 2594 Cho, Bum 15355 Pebble Ridge St 183.91 Dastejir, lmran 2541 Black Lake Blvd 3626 Dowdat, Rajendranauth 2546 Black Lake Blvd 3148.97 Dunn, Norma 13243 Fox Glove St 1505 ! Franketti, Lee & Dabeyba 13765 Fox Glove St 900.44 Frnlre, Ana 1472 Selbydon Way 733.58 ~ :t 2960.4 ~ Goodman, Michael & ElizabetiT" dl20 Pebble 1fit:S Ci Ooodwin, Vincent 1302 Selbydon Way 680 ~ 1002.45 ...-\"""" Grant, Osbourne & Sharon 2118 Black Lake Blvd 3032 C\l McKeever, Oavid 15301 Pebble Ridge St Mitcholl, Stephen 13231 Fox Glove St 3455 Patel, Bhavesh 2389 Baronsmede Ct 1886 1397 Penuela, Maria 14845 Masthead Landing 2328.15 Pineda, Juan 2314 Black Lake Blvd 2042 Rampersaud, Latchman 19521 Fox Glove St 977.5 Sineh, Tennyson 14000 Earlsmede Ct 700 Sanchez, Caroliea 2738 3alforn Tower Way 1182.05 Sukhnandan,Doodnauth 13646 Eylewood Dr 781.44 Suriel, Miguel 13115 Fox Glove St 3550 Villegas, JuaP. 2454 Oakington St 650 Webber, Khadija 2702 Balforn Tower Way OWNER ADDRESS AMOUNT IN ESCROW 49089.1 . ,·. .·· .· llll? 'l?c;t. uh'sW }<'f,H~ A!'JDERSON~...LBGAL GROUP, u..c 52287' ti· "lOtN . ' ·.·. ,.w ..~·'> . > ·. . •=:t:::.:r ·: 201 ~s. 0AAN0EAVENUB,sfutt·900 I · I ·· OR1.ANlJO;}iL:~l . 63-1608-001 • • c ~-:~· • c • • ·: • • • • • rlNJ,,~<.- ·...... ·tr~··~.·.. ~.,$rig .. ia.tu~...... _i :~ ------· I a r s (D =~,;;~ .;For·· ;·;.•11b!l0~3•:-:U :f't[;'c,L. ~~~ · . ANDl!RSON HEW f:>LLC . 1048 IOTA TRUST ACCOUNT e3-167&/eso 201 S ORANGE AVE SUITE 900 310 ORLANDO, FL 32801-5008 DATE e,bl f'1 lltf.1!fJ;U1~'1!D,!1 ~i'J~WoF ~\\:)\.)~ O~L:.\~~~-2~....-----·--- ..--_J $ GO,loDL!;? :Th.P~-·~'-'-·=··~__._·~---\-~;...:::_,·..=..:.·=-··_,_,~F"-·.:o;o_;. =----·..~o::..-....6"""'40~~-·-'){_~-- ..-~_L-_.{Q_·/bti\i) RS ~ ~g~z: ..~ftfCB FOR~~-- 11100 •o a..an• '' I f? b b•: 7 qo 211·-·· Karleen Turner From: Neil Saydah Sent: Wednesday, September 20, 2017 4:51 PM To: Elizabeth Anderson Cc: Karleen Turner Subject: RE: SBW Liz: Karleen and I have sent you numerous emails and letters requesting the information summarized below. My first letter was emailed to you on August 17, and for a month we have not received information or documents. The documents and information I have been requesting should not require more than a few days to provide. I have even offered to send someone to your office to copy the paper files. More than a month later, the only thing provided is a handful of files, incomplete trust accounting, and emails from you stating some ofthe information is forthcoming and excuses why it has not been provided. I cannot believe you would be able to provide competent legal services, especially collection services, for an association of size without keeping detailed accounting records and files for each matter. It would also require more than just you and one assistant. So, it seems you have the information, but you are choosing not produce it and that is why it seems you are refusing to provide the requested information. We do not need to discuss specific missing payments if you provide complete and accurate accounting records and collection files. I need all of the accounting and collection files, as well as, the trust account records for the funds you handled on behalf of the association. Once I have that information, a lot the issues below may be resolved. • On August 17, I requested the following: Itemized invoices of the attorney's fees and costs billed by your firm for each file. copies of all settlement agreements and payment plans. ledgers for each file showing the dates and amounts of each payment and whether payment was sent to FSR. Trust account ledger or ledgers detailing all deposits and disbursements of association funds. Copies of all documents for each file for each homeowner, including all collection letters, claims of liens, correspondence from the homeowner, litigation documents, etc. • On August 30, I requested the following: Breakdown of the $49,089.10 that we received from your office and information sufficient to determine how is should be applied to each homeowners' account. Explanation of the $12,421.00 missing from the trust account. Explanation of funds that were on previous escrow statements that you had provided to the Association that did not appear on the escrow statement provided with the $49,089.10 checks. Trust account records related to the Association's trust account that are required by rule 5-1.2 • On September 5, I again requested the homeowner files and the status of the $12,421 that appears to be -missing from the funds that were held in trust. • On September 6, you said you would provide everything by Friday, September, 8, 2017 including details of all funds and copies of all checks and copies of your invoices from July. • On September 18, we requested information on the $2589 estoppel payment you received for 2467 Baronsmede ct. • Today I learned another check for 2467 Baronsmede ct. in the amount of $1500 was received by you in August, but is not accounted for anywhere. 1 Neil, I had no time yesterday to address the email sent yesterday but I certainly will this week. I have not refused to provide anything. I have been trying to find someone to come in and assist since I have been without an assistant for several weeks now. Call me tomorrow and we can discuss further what missing payments are as the only ones sent to us, and often sometime later from FSR, were the ones sent to you. EJA Liz Anderson, Esquire 201 S. Orange Avenue, Suite 900 Orlando, Florida 32801 407-545-6437 (direct) 407-353-7566 (mobile) [email protected] .Anderson* . g{e - CONFIDENTIAL: ATTORNEY/CLIENT PRIVILEGED; ATTORNEY WORK. PRODUCT The _information contained in this email is intended for the individual or entity above. This email is protected by the Electronic Communications Privacy Act, 18 U.S.C. Sections 2510- 2521 and is legally protected by the attorney/client privilege and/or work product doctrine. Ifi you are not the intended recipient, please do not read, copy, use, forward or disclose this communication to others; also, please notify the sender by replying to this message, and then delete this message from your system. Thank you. Circular 230 Notice - Regulations adopted by the Internal Revenue Service require us to inform you that any federal tax advice contained in this communication (including attachments) (I) is not intended or written by the sender ofi th.is communication to be used, and cannot be used, by any taxpayer for the purpose ofi avoiding . penalties th.at may be imposed on the taxpayer, and (II) is not written to support the promotion · or marketing ofi any transaction(s) or matter(s) addressed in this communication. From: Neil Saydah 2 ( Liz: I never received a response to the attached email regarding the files and the $12,421 that appears to be missing from your trust account. In addition to the missing files and $12,421 that is missing and/or unaccounted for, Karleen emailed you yesterday about the $2589.50 estoppel payment for 2467 baronsmede ct. that your firm deposited into its trust account (also attached). This estoppel payment is also missing and/or not accounted for in any of the documents you provided, and you have not responded to Karleen's follow up requests for information on this payment. Right now, there is roughly $15,000 of the association's money that is missing or unaccounted for from your trust account. Moreover, several owners have provided evidence of payments made to your firm that are not accounted for in anything you have provided, which means the amount of money missing will likely increase. Moreover, the refusal to provide your trust account records or any other records that account for the funds you received and the funds you had in your trust account makes it impossible to apply the funds to homeowner accounts. You also failed to deposit numerous checks and money orders that are made payable to your firm that date back to January of this year. Not only were these payments not timely applied to owner accounts, some of the checks are expired and we must request homeowners reissue payments and money orders. Consequently, the Association is being forced to compromise on many of its claims, and it must provide credits to homeowners for funds the association never received. The association has been tolerant with the transition, but it cannot wait any longer for you provide the records. The Association is going to proceed with the collections seek reimbursement from you and your firm for its losses. You can mitigate the losses by providing the accounting and files, and it behooves you to provide the files and accounting sooner rather than later. Neil From: Elizabeth Anderson [mailto:[email protected]] Sent: Wednesday, September 06, 2017 4:40 PM To: Neil Saydah Subject: SBW I will have everything to your office Friday. Unfortunately I was not able to move my schedule around this week to accommodate trying to get you the information today. All funds will be detailed and copied ofithe checks provided along with the invoices from July. Liz Anderson, Esquire 201 S. Orange Avenue, Suite 900 Orlando, Florida 32801 407-545-6429 (main) 407-545-6437 (direct) 407-353-7566 [email protected] Visit us and www.andersonhew.com 3 .' Karleen Turner From: Karleen Turner Sent: Friday, September 15, 2017 12:52 PM To: Elizabeth Anderson Subject: RE: Letter re: Stoneybrook West Liz I am following up on the email below regarding Stoneybrook. I'm sure Neil will be reaching out to you soon regarding it as we have a meeting with the board on Monday. Please advise. Karleen Turner Paralegal **This correspondence may be an attempt to collect a debt. Any information obtained may be used for that purpose** CONFIDENTIALITY NOTICE The information contained in this transmission may contain privileged and confidential information. It is intended only for the use of the person(s) named above. Ifyou are not the intended recipient, you are hereby notified that any review, dissemination, distribution or duplication of this communication is strictly prohibited. Ifyou are not the intended recipient, please contact the sender by reply e mail and destroy all copies of the original message. Circular 230 Disclosure: Pursuant to recently-enacted U.S. Treasury Department Regulations. we are now required to advise you that, unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used. for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. From: Neil Saydah Sent: Tuesday, September 05, 2017 1:01 PM To: Elizabeth Anderson Liz: As much as we need to get the files transferred, the $12,421 missing from your trust account is by far the most important issue. Your email does not address it all. Please let me know the status of the missing money ASAP. With regard to the files, the IT person that was supposed to be up loading the files to your google one drive said the files were all on your server. If that is the case, the easiest thing to do is save the files to a thumb drive. Once its ready, I will have someone pick it up at your office. I don't know which invoices you are referring to, but I will discuss them with the board if I receive them. 1 Please let me know when the thumb drive is ready. Iwant to pick it up in the next day or two so we can avoid any further delays in transferring the files that could result from the upcoming storm. Neil From: Elizabeth Anderson [mailto:[email protected]] Sent: Tuesday, September 05, 2017 10:40 AM Cc: Neil Saydah Subject: Re: Letter re: Stoneybrook West Neil, I am sorry for the delay. I had had someone working on the files uploading them and getting it transferred to you. They have not done the job so I am doing it myself and will get these corrected this week and perhaps hard files would be best. Let me know your preference. Again, sorry for the delay. There are invoices that were sent via mail in July to FSR and I am having those included since we have not received responses. I have a temp assistant coming in to help since I am Currently without one for the next few weeks. Liz Anderson, Esquire 201 S. Orange Avenue, Suite 900 Orlando, Florida 32801 407-545-6429 (main) 407-545-6437 (direct) eanderson@a ndersonhew .com Visit us and www.andersonhew.com On Wed, Aug 30, 2017 at 4:46 PM -0400, "Karleen Turner" Liz Please find attached a letter from Neil regarding the checks we received on Monday, August 28, 2017. It was also mailed to your office today. Thank you, Karleen Turner Paralegal Saydah Law Firm ' 2572 W. State Rd. 426 Suite 3024 Oviedo, Florida 32765 Phone:407-956-1080 · Fax: 407-956-1081 firm.com 2 Karleen Turner From: Elizabeth Anderson Almost finished with uploading. Should have by end of day today Liz Anderson, Esquire 201 S. Orange Avenue, Suite 900 Orlando, Florida 32801 407-545-6429 (main) 407-545-6437 (direct) [email protected] Visit us and www.andersonhew.com On Tue, Aug 1, 2017 at 9:19 AM -0400, "Karleen Turner" Hi Liz I just wanted to follow up and see what the status is on getting the files for Stoneybrook. Thanks! Karleen Turner Paralegal **This correspondence may be an attempt to collect a debt. Any information obtained may be used for that purpose** CONFIDENTIALITY NOTICE The information contained in this transmission may contain privileged and confidential information. It is intended only for the use of the person(s) named above. Ifyou are not the intended recipient, you are hereby notified that any review, dissemination, distribution or duplication ofithis communication is strictly prohibited. Ifiyou are not the intended recipient, please contact the sender by reply e mail and destroy all copies 0£ the original message. Circular 230 Disclosure: Pursuant to recently-enacted U.S. Treasury Department Regulations, we are now required to advise you that, unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures. is not intended or written to be used, and may not be used, for the purpose 0£ (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. 1 Karleen Turner From: Karleen Turner Sent: Tuesday, August 08, 2017 11:12 AM To: Elizabeth Anderson Cc: Neil Saydah; Steven Telkamp Subject: RE: Stoneybrook West Liz Do you have an update on the rest ofthe files? Thanks Karleen Turner Paralegal **This correspondence may be an attempt to collect a debt. Any information obtained may be used for that purpose** CONFIDENTIALITY NOTICE The information contained in this transmission may contain privileged and confidential information. It is intended only for the use of the person(s) named above. Ifiyou are not the intended recipient, you are hereby notified that any review, dissemination, distribution or duplication ofithis communication is strictly prohibited. Ifiyou are not the intended recipient. please contact the sender by reply e mail and destroy all copies ofithe original message. Circular 230 Disclosure: Pursuant to recently-enacted U.S. Treasury Department Regulations, we are now required to advise you that, unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. From: Elizabeth Anderson [mailto:[email protected]] Sent: Wednesday, August 02, 2017 4:20 PM To: Karleen Turner Karleen, Please see link and let me know if you are able to access. The Dropbox did not work and my IT person, Steve, had to handle another issue with another client and had been out of pocket. He is assisting me and helping with the files that wont copy over. https://ldrv.ms/f/s!Av5Nf2AwmBYBeaMi6dkOqreJfw93Ye Liz Anderson, Esquire 201 S. Orange Avenue, Suite 900 1 Karleen Turner From: Elizabeth Anderson I am meeting with him this morning on that to make sure he gets this handled. I will get the list ofifees over to you as well Liz Anderson, Esquire 201 S. Orange Avenue, Suite 900 Orlando, Florida 32801 407-545-6429 (main) 407-545-6437 (direct) [email protected] Visit us and www.andersonhew.com From: Karleen Turner Hi Liz Just wanted to follow up on the status o:Dyour fees for Stoneybrook since we need to include them on the demands that we send and we need to include them on the estoppel request in the email attached. Also, I spoke to your IT guy and he said that he was going to get into the server again and try to get the rest o:D the files, do you have an update on that? Karleen Turner Paralegal Saydah Law Firm 2572 W. State Rd. 426 Suite 3024 Oviedo, Florida 32765 Phone:407-956-1080 Fax:407-956-1081 www.savdahlawfirm.com f":l .....--·---'•""",...,_..,..,,o____ L:.I ===-:·-.., 1 Karleen Turner From: Neil Saydah Sent: Tuesday, October 10, 2017 11:44 AM To: Elizabeth Anderson Cc: Karleen Turner Subject: RE: Update on Stoneybrook Just to recap the last few days, on Friday you promised to deliver everything on Monday. Monday you were not working and nothing was delivered. Today you said maybe this afternoon, which was followed with the below email claiming you have a "Firm meeting." Based on your prior course of conduct, I assume the "Firm meeting" means you will not be delivering the files today either. You are not being honest when you say you are trying to get it done as quickly as possible. Over two months is plenty of time for anyone to gather the files and trust accounting records and deliver them to our office. Please do not give me or my staff anymore excuses, just get everything to my office today. Neil From: Elizabeth Anderson [mailto:[email protected]] Sent: Tuesday, October 10, 2017 11:11 AM To: Neil Saydah Subject: Re: Update on Stoneybrook Neil, The Firm has a meeting scheduled that was set weeks ago starting at 2pm and I am not sure how long it will be. I did not schedule it. I am trying to get this done for you as quickly as one person can. You are welcome to call me further to discuss. Liz Anderson, Esquire 201 S. Orange Avenue, Suite 900 Orlando, Florida 32801 407-545-6429 (main) 407-545-6437 (direct dial) [email protected] -Anderson g{e'WPLLC A~l.t.~Aii.AW CONFIDENTIAL: ATTORNEY/CLIENT PRIVILEGED; ATTORNEY WORK PRODUCT The information contained in this email is intended for the individual or entity above. This email is protected by the Electronic Communications Privacy Act, 18 U.S.C. Sections 2510-2521 and is legally protected by the attorney/client privilege and/or work product doctrine. If you are not the intended recipient, please do not read, copy, use, forward or disclose this communication to others; also, please notify the sender by replying to this message, and then delete this message from your system. Thank you. Circular 230 Notice - Regulations adopted by the Internal Revenue Service require 1 us to inform you that any federal tax advice contained in this communication (including attachments) (I) is not intended or ·written by the sender of this communication to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer, and (II) is not written to support the promotion or marketing of any transaction(s) or matter(s) addressed in this communication. From: Neil~~;yd~~~@saydahlawfirm.;om> !.Date: Tuesday, October 10, 2017 at 10:27 AM To: Elizabeth Anderson On Friday, you did not know your office was closed yesterday? Now you are not even sure if you will have it done today? From: Elizabeth Anderson [mailto:[email protected]] Sent: Tuesday, October 10, 2017 9:09 AM To: Karleen Turner Cc: Neil Saydah Subject: Re: Update on Stoneybrook Good morning. I am hoping to have it finished this afternoon and will let you know shortly today. liz Anderson, Esquire 201 S. Orange Avenue, Suite 900 Orlando, Florida 32801 407-545-6429 (main) 407-545-6437 (direct) [email protected] Visit us and www.andersonhew.com On Mon, Oct 9, 2017 at 4:44 PM -0400, "Karleen Turner" Bello Liz bur office in Oviedo closes at 5:00 p.m. Can you please update me on the status ofithe courier and/or the ~ocuments and accounting information? I Thank you, Karleen Turner Paralegal [**This correspondence may be an attempt to collect a debt. Any information obtained may be used forthat purpose** CONFIDENTIALITY NOTICE 2 The information contained in this transmission may contain privileged and confidential information. It is intended only for the use of: the person(s) named above. I:t:you are not the intended recipient, you are hereby notified that any review, dissemination, distribution or duplication o:t:this communication is strictly prohibited. I:t:you are not the intended recipient please contact the sender by reply e mail and destroy all copies o:t:the original message. Circular 230 Disclosure: Pursuant to recently-enacted U.S. Treasury Department Regulations, we are now required to advise you that, unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or \vritten to be used, and may not be used, for the purpose of(i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. From: Elizabeth Anderson [mailto:[email protected] Sent: Friday, October 06, 2017 11:48 AM To: Karleen Turner Karleen, Per our telephone call, the balance of documents and accounting will be sent to you via courier Monday. Liz Anderson, Esquire 201 S. Orange Avenue, Suite 900 Orlando, Florida 32801 407-545-6429 (main) 407-545-6437 (direct dial) [email protected] CONFIDENTIAL: ATTORNEY/CLIENT PRIVILEGED; ATIORNEY WORK PRODUCT The information contained in this email is intended for the individual or entity above. This email is protected by the Electronic Communications Privacy Act, 18 U.S.C. Sections 2510-2521 and is legally protected by the attorney/client privilege and/or work product doctrine. If you are not the intended recipient, please do not read, copy, use, forward or disclose this communication to others; also, please notify the sender by replying to this message, and then delete this message from your system. Thank you. Circular 230 Notice - Regulations adopted by the Internal Revenue Service require us to inform you that any federal tax advice contained in this communication (including attachments) (I) is not intended or written by the sender of this communication to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer, and (II) is not written to support the promotion or marketing of any transaction(s) or matter(s) addressed in this communication. From: Karleen Turner Liz 3 1We haven't received an update from you regarding any ofour requests or a response to Neil's last email from Sept. 20, 2017, which is attached to this email. I have been going through the files one by one and have come across multiple discrepancies in regards to what amount should be in the homeowner's escrow accounts. We have requested an accurate escrow accounting and trust account ledger for the past two months and have not received it nor have we received the files for any additional accounts beside the few we received in August. Additionally, have you been able to determine where the difference is between what we received in the two trust checks from you and what is showed on the escrow sheet, and if so can you please send us the check for that amount? As Neil has stated previously, the association cannot move forward with its collections against the homeowners without this information. One issue I have run into is that the notes that are on the last spreadsheet you sent to FSR, which I believe was around June 2017, show the dates and amounts ofipayments that were received in your office but when I compare that to the amount that is on the escrow sheet, they do not match and in most cases, the amount listed in the notes is more than what is showed on the escrow sheet. For an example, 2738 Balforn Tower Way shows that you received $1050 in payments that were held in escrow but the escrow sheet you have provided us only owes $700. A payment ofi$350 does not appear on the homeowners ledger so did you receive the $1050 or the $700 and what is the cause for the difference in the two. Also, we need to have substitutions oficounsel done for all ofthe files you had a notice ofiappearance filed for. I had sent a few over in August blJt never heard back regarding them and we ended up filing notice ofi appearances for them due to the li6gation files needing to be dismissed. I know you spoke to the attorney for one ofthe banks today and advised her to contact us. Do you want to see the substitutions prior to them being filed or can I go ahead with them. .Please provide an update on all outstanding requests by October 6, 2017. !Karleen Turner ·Paralegal Saydah Law Firm 2572 W. State Rd. 426 Suite 3024 Oviedo, Florida 32765 .Phone: 407-956-1080 Fax: 407-956-1081 **This correspondence may be an attempt to collect a debt. Any information obtained may be used for that purpose** I CONFIDENTIALITY NOTICE The information contained in this transmission may contain privileged and confidential information. It is intended only for the use ofi the person(s) named above. Ifiyou are not the intended recipient, you are hereby notified that any review, dissemination, distribution or duplication ofithis communication is strictly prohibited. Ifiyou are not the intended recipient, please contact the sender by reply e mail and destroy all copies ofithe original message. ) 4 Please note: my last ciay with the firm will be November 28, 2017. I will copy our new Paralegal/Case Manager, Amber Shields, on all communications going forward. Her email address is ashields(ii)savdahlawfirm.com* **This correspondence may be an attempt to collect a debt. Any information obtained may be used for that purpose** CONFIDENTIALITY NOTICE 7 ..... The information contained in this transmission may contain privileged and confiOential information. It is intended only for the use of the person(s) named above. If you are not the intended recipient. you are hereby notified that any review. dissemination. distribution or duplication ofthis communication is strictly prohibited. If you are not the intended recipient. please contact the sender by reply e mail and destroy all copies ofthe original message. Circular 230 Disclosure: Pursuant to recently-enacted U.S. Treasury Department Regulations, we are now required to advise you that, unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used. and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to ~nother party any tax-related matters addressed herein. ,r From: Karleen Turner Sent: Tuesday, October 24, 201710:02 AM Liz l still do not have an update from you on the checks from this closing. I have spoken with the title company and they have confirmed that the checks were cashed. $4,394.00 made payable to Andersonhew PLLC $1,000.00 made payable to Andersonhew PLLC Please advise by the end oi business today as to the status ofithe money. lfiyou have• sent it to FSR, please provide a copy ofithe check that was sent along with any correspondence. Karleen Turner Paralegal Please note: my last day with the firm will be November 28, 2017.1 will copy our new ParalegaVCase Manager, Amber Shields, on all communications going forward. Her email address is ashields(@saydahlawfirm.com* **This correspondence may be an attempt to collect a debt. Any information obtained may be used for that purpose** CONFIDENTIALITY NOTICE The information contained in this transmission may contain privileged and confidential information. It is intended only for the use of the person(s) named above. If you are not the intended recipient, you are hereby notified that any review, dissemination, distribution 4 Atta 0\'"WY\tY\'t €\ Le R1111 Tiiie, LLC EsclllwAocolll 14211 Olklnllllo Blvd. Sulo: 200 CeWlailioa, PL34747 ...... 800-525-61!19 08/0ll2017 One Tho11111nd and 00/100 Dollars ' TO AndmanHcw IOTA THE ORDER OF ... MIMO;lll1'.l:§A.:.JW.!ellle~ ~ ··-·-. .. ·-·--·· __-AilIHCBP>SIG!\\::mu=_ "'& i! 2&r.ftl 1:ft Ir.r.•: ii loo.. ...... ··•·· ·, •Ut.: 6~'lti~°'17tr~. ~~li"h/ti~°'t-trf•;~l. :: ! ; t= ; ~; '""-.J l L1 Baa Diie, LLC 62287 Emaw Atcooa 1420Cdelnlioa111.0. Sidle 200 CsldJalloo, FL 34747 B00-525-6JJ9 OlllOl/2017 Four Thousand Tbn:1 Handled NindJ-Foar and 11(100 Dolla!s ·to Andertaa Hcnv PLLC THE ORDER OF .M!M0'.20l7M.l • llllA.Balamlllllr ' '"IH ~a?• •F••~: r.r.1: ~: ..' " ' ~ .. :·!i aiht lr3Jiiit:»J~~ ~~""~~..~.rw il:i41 .. ~ : .·:. . ~ _N_e_n_s_a~y-d_a_h______.....______ From: Karleen Turner Sent: Thursday, October 26, 2017 10:44 AM To: Elizabeth Anderson Cc: Neil Saydah; Amber Shields; Raquel Melendez Subject: RE: Fax Received re Stoneybrook West Attachments: FW: **HIGH PRIORITY**REO-FL-743792976317437929763 I 2467 Baronsmede Ct, Winter Garden, FL 34787-4680 (Attached in ResWare); Fax rcvd 9.11.17 (00052813xE1149).PDF Liz We have not received an update as to the status o£the $2589.50 that was collected at the closing. It has not been received by our onice 0£ FSR. Please advis- Karleen Turner Paralegal Please note: st day with the firm will be November 28, 2017. I will copy our new Paralegal/Case Shields, on all communications going forward. Her email address is awfirm.com* **This correspondence may he an attempt to collect a debt. Any information obtained may be used for that purpose** CONFIDENTIALITY NOTICE The information contained in this transmission may contain privileged and confidential information. It is intended only for the use of the person(s) named above. Ifyou are not the intended recipient, you are hereby notified that any review. dissemination, distribution or duplication of this communication is strictly prohibited. Ifyou are not the intended recipient, please contact the sender by reply e mail and destroy all copies of the original message. Circular 230 Disclosure: Pursuant to recently-enacted U.S. Treasury Department Regulations, we are now required to advise you that, unless otherwise expressly indicated. any federal tax advice contained in this communication, including attachments and enclosures. is not intended or written to be used, and may not be used, for the purpose of(i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. From: Elizabeth Anderson [mailto:[email protected]] Sent: Monday, September 18, 2017 9:44 AM To: Karleen Turner Karleen Getting the response to you momentarily. I have been out due to damage and outages from Irma but we are back open today. Check/SeriaJ# :5796939 Account# •I••D304 Amount: 2,589,50 ..nsu NO~··.~· ocwa LOAN $8NICINC LLC .,_.,_--'11111;"1 ... acROW ll"!llllM:Mfll:f AaXJURf ~'ii!C:JJWl 1661 WORTHINClON ROM>· SUQ 'ICXl .Wf!Sf P!tl.M llE'.ACH~ l'L "409 ~ -111!'1" 1'800-1~ 03/21/17 '.$1!'lt'lt••a,58'9F50 I PAY ~ ·~ '-'l'11BH!JlllllUID B'.mBt.r•1mi1• mews• sv c:m1 ••******•••.,.*****'h**""'**Wt11 ;t_l1'fl! ·1 illJ OllVI ·iwa ~'!UIUit.!llCUl!lltrM~ tm.a.ooi ·m D8. .i:adar•on.:lw:MiLC IOTA ~$t Account ...... I nm 201 $. Onn!J!! Av'l!llile, Sidt•·HO •OUll.t or1ando, FL 32801 OT ' J SAYDAH LAW FlRM 2572 West S.R. 426 Suite 3024 Oviedo, FL 32765 The Florida Bar Attention: ACAP 651 East Jefferson Street Tallahassoe, FL 32399-2300