Trust and Betrayal: Navigating Client Fraud in Legal Practice

Loyalty is one of the bedrock principles of the legal profession. A lack of trust between an attorney and a client can prevent the client from disclosing sensitive and damaging information to the attorney, which can subsequently hinder the attorney’s knowledge of relevant facts and the ability to provide diligent representation to the client. But loyalty to the client is not absolute, particularly when clients are using a lawyer’s services to perpetrate frauds or engage in criminal activity. There are instances where attorneys may owe duties or reporting requirements to courts or third parties. In this program, we’ll look at some real-life and hypothetical instances where a lawyer may have to take a step back and evaluate whether what her client wants to achieve, or the means the client intends to use, conflict with the lawyer’s duties to others.

Learning Objectives:

Understand the Role of Loyalty in the Attorney-Client Relationship & Importance of Client Screening – Participants will be able to explain how loyalty and trust influence client disclosure, the attorney’s ability to provide competent and diligent representation, and learn best practices to screen prospective clients
Recognize Ethical Limits to Client Loyalty – Participants will learn to identify situations where a lawyer’s duty to the client may be limited by obligations to courts, third parties, or the legal system — especially in cases involving fraud or criminal conduct
Analyze Real and Hypothetical Scenarios Involving Conflicting Duties – Participants will evaluate case studies and hypotheticals to determine when a lawyer must reassess their role and responsibilities due to ethical conflicts
Apply Professional Responsibility Standards to Complex Client Situations – Participants will gain the ability to apply relevant rules of professional conduct to assess and navigate

Topics covered include:

Legal Ethics Law Practice

Agenda:

Introduction & Framing the Issue

Speaker introduction and overview of session goals
Importance of loyalty and ethical boundaries in legal practice

Client Intake & Risk Management

Starting with a solid foundation: why proper intake matters
Red flags and warning signs: avoiding problem clients
Streamlining the intake process

Capturing the necessary information
Crafting an effective client checklist
Using non-lawyer staff to assist in the process [ABA Formal Op. 506]
Best practices for client intake and engagement agreement clauses

Ethical Duties & Overview of Relevant ABA Model Rules of Professional Conduct

Scope of representation (Rule 1.2(d))
Termination and withdrawal (Rule 1.16 & Comments)

Risk-based inquiry determination and ongoing evaluation
Duty to inquire and assess client conduct

Case Studies: Ethical Dilemmas in Practice

Each scenario includes a brief setup, ethical analysis, and polling question

Suspicious Merger & Acquisition – Possible money laundering (NYC Bar Op. 2018-4) and MRPCs 1.0 (Knowledge), 1.1 (Competence), 2.1 (Advisor), and 1.16 (Declining or Terminating Representation)
Falsified Agreements – Third-party liability and disclosure (ABA Op. 92-366) and MRPCs 1.6 (Confidentiality), 1.13 (Organization as Client), 1.16, and 4.1 (Truthfulness in Statements to Others)
Email “Snooping” – Misappropriated communications (MRPCs 3.3, 4.4, 8.4, and In re Eisentstien, 485 S.W. 3d 759 (Mo. 2016)
Client Perjury – False testimony and lawyer’s duty (Rules 3.3, 1.6, and noisy withdrawals)
Successor Counsel & Fraudulent Pleadings – Inherited ethical obligations (Nissenson et al. v. Bradley, 738 N.E.2d 586 (Ill. App. Ct. 2000)

Closing & Questions & Answers

Duration of this webinar: 60 minutes

When: Premieres in 66 days | November 20, 2025 11:00 AM PT

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Continuing Legal Education (CLE) Credits

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California CLE

Status: Approved

Credits: 1.00 Legal Ethics

North Carolina CLE

Status: Approved

Credits: 1.00 Ethics

Texas CLE

Status: Approved

Credits: 1.00 Legal Ethics/Professional Responsibility

This presentation is approved for one hour of Legal Ethics CLE credit in California, and one hour of Ethics CLE credit in North Carolina. This course has been approved for Minimum Continuing Legal Education credit by the State Bar of Texas Committee on MCLE in the amount of 1.00 credit hours, of which 1.00 credit hours will apply to Legal Ethics/Professional Responsibility credit.

Justia only reports attendance in jurisdictions in which a particular Justia CLE Webinar is officially accredited. Lawyers may need to self-submit their certificates for CLE credit in jurisdictions not listed above.

Note that CLE credit, including partial credit, cannot be earned outside of the relevant accreditation period. To earn credit for a course, a lawyer must watch the entire course within the relevant accreditation period. Lawyers who have viewed a presentation multiple times may not be able to claim credit in their jurisdiction more than once. Justia reserves the right, at its discretion, to grant an attendee partial or no credit, in accordance with viewing duration and other methods of verifying course completion.

At this time, Justia only offers CLE courses officially accredited in certain states. Lawyers may generate a generic attendance certificate to self-submit credit in their own jurisdiction, but Justia does not guarantee that lawyers will receive their desired CLE credit through the self-submission or reciprocity process.

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Speaker

Tracy L. Kepler Director of Risk Control Consulting
CNA's Lawyers Insurance Program

Tracy L. Kepler is the Risk Control Consulting Director for CNA’s Lawyers Insurance Program. In this role, she designs and develops content and distribution of risk control initiatives relevant to the practice of law. She collaborates with the underwriting and claims teams to develop and execute strategies for the profitable growth of the program. Tracy lectures frequently at CNA-sponsored events and at state and local bar associations and national seminars hosted by industry-leading organizations. She also writes articles focusing on law firm risk control and professional responsibility issues. Read More ›

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