Attorney Cash Deposits NOT to IOLTA

I have an attorney who has deposited $40,000 in cash in the last 12 to his operating account. I looked up the LBA website, guidance for IOLTA's and I think I'm reading all the client funds need to go to the IOLTA. Is it ever okay in Louisiana to put client funds (I assume these are client funds) directly into the operating account?

https://lalegalethics.org/louisiana-rule...eping-property/


(c) A lawyer shall deposit into a client trust account legal fees and expenses that have been paid in advance, to be withdrawn by the lawyer only as fees are earned or expenses incurred. The lawyer shall deposit legal fees and expenses into the client trust account consistent with Rule 1.5(f).

What type of attorney and what makes you think these are fees paid in advance. A lot of attorneys handle cases for flat fees, such as DUI's, etc. These are not prepayments and many times paid in cash.

According to his website, he handles personal injury (probably not a lot of client deposits coming from that) and criminal defense. I did find the place in the LBA guidance that said an attorney could take payments toward flat fees or minimum fees directly to their operating account. He actually alerted for structuring, and his cash spiked up last month accounting for about a third of the cash in for the past 12. But he's no young attorney...been in practice for years. We just rarely see attorney's alerting for structuring.

So...not suspicious? It's certainly a change in the account activity. I realize we should ask him but his account officer's on vacation and I was just seeking other input.

I would have someone give him a call. That is the only why to find out what is going on. Otherwise you might be stuck with a unusual activity SAR.