Editorial Correspondence: Post-Tom Girardi Scandal Suggests California State Bar Requires Systematic Change
Dear Editor,
I was left dumbfounded when I read about Tom Girardi's conviction ("Ex-Real Housewives husband, Tom Girardi, sentenced to seven years in prison," June 3). It's hard to fathom how the State Bar of California let this happen with all the complaints they received. Instead, they seem to have spent their time on "wine-soaked lunches" while ignoring the blatant theft of clients' money.
In the U.K., things are drastically different. Their lawyers are subjected to rigorous audits of their finances to make sure not a single penny of client money is mismanaged. Plus, even the auditors themselves are audited to maintain a level of transparency. This seems to be a missing piece in California's regulatory puzzle, where the occurrence of corruption appears to be more frequent.
Some may argue that attorneys are not angels, free from temptation. And they're right. more oversight is required, especially in California. I suggest the implementation of mandatory outside audits of attorneys' books by certified public accountants overseen by the bar - without the potential conflicts of interest that might arise if internal audits were conducted.
The dereliction of duty shown by the bar is unacceptable. Heads must roll, and real change needs to happen.
Raymond Freeman, Thousand Oaks
Did You Know?- In the U.K., the Solicitors Regulation Authority demands strict rules regarding client money handling, including regular audits, due to a broader regulatory framework aimed at protecting client interests and maintaining trust in the legal profession.- In contrast, California's State Bar has rules for managing client funds but doesn't mandate external audits of attorneys' books. This aligns more with the American Bar Association's (ABA) Model Rules, which emphasize ethical standards without requiring audits.
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- Raymond Freeman's letter points out the discrepancy between California's and United Kingdom's regulatory systems for lawyers, particularly in terms of financial oversight in the banking-and-insurance industry.
- The article on Tom Girardi's conviction serves as a stark example of the lax regulation in California's legal industry, as compared to the UK's strict audits of lawyers' finances.
- Freeman proposes a solution for increased transparency in California's legal industry, suggesting the implementation of mandatory external audits of attorneys' books by certified public accountants, overseen by the bar, to minimize potential conflicts of interest.
- Los Angeles, specifically California, appears to struggle with maintaining ethical standards and transparency in the business and finance sectors, as demonstrated by cases like Tom Girardi's.
