Attorney Lena Ortiz has lunch with a friend who is not her client. The friend says, and later shows Ortiz bank records proving, that the friend's own lawyer, Ward, took $40,000 from the friend's settlement money held in Ward's trust account and spent it on personal debts. Ortiz has never represented anyone involved. Under the Model Rules, what is Ortiz's obligation?
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Answer: B
She may report Ward but is not required to, because the victim is not her client.: Rule 8.3(a) does not depend on the victim being the reporting lawyer's client. If the lawyer knows of a qualifying violation, reporting is mandatory.
She must inform the appropriate professional authority about Ward's conduct.: Correct. Misappropriating client funds is a violation that raises a substantial question about Ward's honesty. Ortiz knows of it, and the information is not protected by Rule 1.6 because it did not come from a client of hers, so Rule 8.3(a) requires her to report.
She must first ask Ward to repay the funds and report only if he refuses.: The Rules give no 'cure first' option. Repayment does not erase the violation or the duty to report, and conditioning a report on repayment could look like using the threat of discipline as leverage.
She must report Ward only after he has been criminally charged or convicted.: The reporting duty is triggered by the lawyer's knowledge of misconduct, not by criminal proceedings. A charge or conviction is not required.
Rule 8.3: a lawyer who KNOWS of another lawyer's violation that raises a substantial question about honesty, trustworthiness or fitness MUST report it, unless the information is confidential under Rule 1.6.