The Alabama State Bar today publicly reprimanded Saraland lawyer Johnny Lane, whose longtime assistant stole about $180,000 from his law firm’s trust account.Susan Pack, Lane’s assistant, pleaded guilty earlier this year to theft and forgery charges for siphoning money away from Lane’s firm through hundreds of bank withdrawals and debit card transactions.
One lawsuit pending in Mobile County Circuit Court claims that Pack stole money that was intended for the families of asbestos victims in legal settlements.
“Mr. Lane, you did not make reasonable efforts to insure that measures were in place that would give reasonable assurance that Ms. Pack’s conduct was compatible with your professional obligations,” the State Bar wrote in its reprimand, reported during the bar commissioners’ meeting in Montgomery on Friday.
“Specifically, the investigation revealed that as early as 2008, you had reason to know that Ms. Pack may have misappropriated funds and fraudulently used your credit cards, yet you took no action to investigate the matter.”
Lane also serves as municipal judge in Satsuma and Chickasaw. He declined to comment Friday.
The reprimand does not affect Lane’s license to practice law.
Court records indicate that Lane reported the thefts to police in April 2010.
Lane acknowledged that Pack failed to produce records of his business’s trust account — where legal funds are kept in holding — even though he repeatedly asked for them, according to the reprimand. Also, Lane couldn’t explain how she got access to the PIN number for his debit card.
Trust account records showed almost daily withdrawals by Pack as early as 2009, according to the reprimand.
Pack also stole $26,000 in State Farm insurance money in that was intended for Lane to pay for Hurricane Katrina damage to his home, according to court records.
Under a plea agreement, Pack is serving five years probation.
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