SC Supreme Court tells Kentucky lawyer what she’s NOT gonna do….

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mike-goodwin-bowtie-comedian

I’ve blogged before about Mike Goodwin, the “Bow Tie Comedian” based here in Columbia, who entertained us during lunch at Chicago Title’s seminar last year. I highly recommend Mike if you need a comedian suitable for a family audience. A joke that bubbled up through his very funny presentation was a line his mother used to keep him on the straight and narrow during his childhood, “what you NOT gonna do is…..”

 

For example, she would say, what you NOT gonna do is to stand there and hold that refrigerator door open while you try to decide what you want to eat. During one lull in the laughter, Mike said to us, “what you NOT gonna do is sit there and not laugh at my jokes.” (So we laughed.)

Mike’s tag line kept coming to me as I read In the Matter of McKeever, a September 20, 2017 South Carolina disciplinary case where a Kentucky lawyer was permanently debarred from seeking any form of admission to practice law (including pro hac vice admission) in South Carolina.

The Court clearly told McKeever what she’s NOT gonna do in the Palmetto State!

red card - suit

McKeever engaged in several interesting and dangerous courses of action in South Carolina. One of the most damaging to her position seemed to be failing to respond to the disciplinary charges or to participate in the disciplinary proceedings in any way. The Court held this failure to be indicative of a disinterest in the law. No lawyer should ever be found to be disinterested in the law if she wants to continue to practice in this or any state!

Other activities were equally dangerous. McKeever and her husband left Kentucky in the midst of a foreclosure of their $1 million home loan. She arrived in Charleston and came into contact with Betty McMichael who owned two properties, 991 Governors Road where she resided, and 986 Governors Road, which she rented out.

McMichael faced foreclosure on both properties, and McKeever offered her legal representation despite not being licensed in South Carolina. McMichael repeatedly declined the offer but ultimately agreed to an arrangement, after repeated phone calls and visits, that allowed McKeever and her family to live at 986 Governors Road.

I hear the Supreme Court say, “what you’re NOT gonna do is to enter into an improper fee arrangement where the scope of the legal representation and the basis of the fee are not clearly explained to the client.) I also hear the Court say, “what you’re NOT gonna do is to create a conflict of interest by taking a possessory interest in property that is the subject of litigation.”

Later McKeever induced McMichael to execute a quitclaim deed in favor of Bondson Holdings, a “fictitious entity” owned by McKeever and her husband. (I can’t even put to paper the words the Court really wanted to use for this bit of deception.)

The saga continued with delay tactics, frivolous and meritless legal positions, false statements to courts, threatened civil actions and criminal prosecutions against opposing counsel, the presiding judge and the clerk of court. The Court was not amused and, in addition to the permanent debarment, reserved the right to void the deed after other proceedings involving the property are finally resolved.

I recommend the case as interesting reading in classic hutzpah and failing to follow any rules.

With great power comes great responsibility

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Six sensational ways to stop cyber villains

Cybersecurity is job #1 for dirt lawyers. Even in our close-knit state, we hear of attacks every week. A lawyer’s office could easily be forced out of business by one of these evil attacks. In our office, we read everything printed on the topic, and I offer you the six best, simplest tips I’ve seen. The first five are from American Land Title Association, developed with the help of the FBI, and the sixth is from the South Carolina Bar.

  1. Call, don’t e-mail: Confirm all wiring instructions by phone before transferring funds. Use the phone number from the recipient’s website or business card.
  2. Be suspicious: It’s not common for the companies involved in real estate transactions to change wiring instructions and payment information. Use common sense, stay alert to things that don’t look or feel quite right in a transaction and use your “Spidey senses”!
  3. Confirm it all: Ask your bank to confirm not just the account number but also the name on the account before sending a wire.
  4. Verify immediately: Call the recipient to validate that the funds were received. Detecting that you sent the money to the wrong account within 24 hours gives you the best chance of recovering your money.
  5. Forward, don’t reply: When responding to an email, hit forward instead of reply, then start typing with a known email address. Criminals use email addresses that are similar to real ones. By typing email addresses you will make it easier to discover if a fraudster is after you.

Thank you, ALTA and FBI, for those great tips!

The best tip, by far, that I have seen comes from the South Carolina Bar.  This tip is not only excellent for avoiding cyber fraud, it’s a great way of avoiding mistakes of all kinds in real estate practices. Here it is:

  1. Give yourself and your staff permission to slow down! We know things are hot out there not only in terms of the weather but also in terms of the speed of closings. Many of us who weathered the financial downturn remember what it was like when things were hot in 2005 – 2007. Closing speed can be increased only so much without causing error after error. Remember illegal flips prior to the financial downturn?  How many of them could have been prevented if someone had stopped long enough to think or long enough to bounce the scenario off of a friendly title insurance company underwriter? The same is true of protecting your clients’ money. Stop and think and allow your staff members to spend the time to stop and think.

Thank you, South Carolina Bar, for this great tip.

And, finally, I strongly recommend insurance against cyber fraud. Check with your E&O carrier to see what it offers. If it does not offer insurance to protect against this danger, find a company that does!  Call your title insurance company for suggestions!