Attorneys hold funds for clients, and many attorneys get in trouble because of it.  Just this week two disciplinary cases were published.  In one the brother of an attorney converted a large sum from the escrow account.  The attorney was suspended for failing to supervise his brother.  Here, the attorney resigns in the face of two claims that he took a large sum of money that should have been in escrow. In the second of the two complaints he was sued for, and admitted legal malpractice,

Matter of Weiner ;2012 NY Slip Op 01580 ;Decided on March 1, 2012 ;Appellate Division, First Department ;Per Curiam. 
 

"Respondent acknowledges that in August 2011, a complaint was filed against him by an individual alleging that he wrongfully was in possession of her $10,000 down payment, wired to him as seller’s attorney, for the purpose of purchasing real property. When the mortgage application was denied, the individual was entitled to the return of her down payment which respondent had kept in his business account since he did not have an escrow account related to his practice of law. In June 2011, he gave the individual a check for $10,000, but, it was returned for insufficient funds. It is further alleged that respondent used the down payment funds for a purpose other than what it was intended.

In September 2011, respondent received a copy of a complaint filed against him by two individuals alleging that he converted escrow funds for his personal use without their authority during the course of his representation as their attorney in the sale of their apartment. Earlier, on or about August 2, 2011, the two individuals had commenced a civil suit in New York Supreme Court against respondent alleging, conversion, breach of contract, legal malpractice, breach of fiduciary duty or negligence. On or about August 15, 2011, respondent entered into a stipulation with them wherein he admitted that he had no defense to the claims asserted in the civil lawsuit and a judgment was entered against him for $116,812.19, which included prejudgment interest and attorney’s fees. "