Attorney: William Jones Rivers III
Location: Darlington
Bar membership: Member since 1991
Disciplinary action: Disbarred by the South Carolina Supreme Court July 16
Background: Some time around 2006, Rivers’ law partner, John Schurlknight, told Rivers that their firm had a shortage in its trust account and that Schurlknight planned to resolve the issue by using money belonging to other clients to keep the account afloat. Rivers thus began actively participating in a self-perpetuating cycle of misappropriating client funds. In 2011, Rivers and Schurlknight signed a promissory note to two clients acknowledging a debt of $1,695,000 owed because Schurlknight had misappropriated proceeds on claims he settled for the clients without their knowledge.
Although the manner in which it misappropriated funds varied from case to case, the firm settled many cases without the respective clients’ knowledge or consent and misappropriated some or all of the proceeds. Attorneys and other firm staff members routinely signed the names of clients to settlement documents and endorsed their names on settlement checks. Rivers and Schurlknight routinely lied to clients and lienholders about the status of individual cases.
Schurlknight committed suicide on Nov. 13, 2012; the court placed Rivers on interim suspension seven days later. Rivers contends he did not personally take any stolen funds, but acknowledges that the firm’s collection of fees in the cases and his collection of a salary were entirely inappropriate. Rivers pleaded guilty to one count of federal mail fraud on Feb. 6, 2014 and agreed to make a full restitution. The Lawyers’ Fund for Client Protection received more than $1,286,000 in claims from Rivers’ clients and more than $3,800,000 in claims from Schurlknight’s clients.
Previous discipline: Rivers was placed on interim suspension on Nov. 20, 2012
Attorney: Kenneth B. Massey
Location: Calabash, N.C.
Bar membership: Member since 1994
Disciplinary action: Publicly reprimanded by the South Carolina Supreme Court July 2
Background: While appearing in family court on behalf of the father of a child involved in a custody matter, Massey submitted an affidavit from his client which contained a material misrepresentation regarding the current custody of the child. Massey said that the affidavit was originally prepared for an earlier hearing that was rescheduled, and that he was under the impression that his client had amended the affidavit, but admitted he did not review the affidavit prior to submitting it to the court
Previous discipline: Massey was suspended from the practice of law in 2004 after admitting multiple instances of misconduct, in connection with a fee agreement matter, a divorce matter, and a client file matter.
All information contained in the Bar Discipline Roundup is compiled from orders issued by the South Carolina Supreme Court and edited by staff writer David Donovan. He can be reached at david.donovan@sclawyersweekly.com