Morton Grove Attorney Accused Of Misusing Client Funds During Real Estate Deals
MORTON GROVE, IL — A local attorney accused of using thousands of dollars of his clients’ money for his own personal and business expenses faces a disciplinary hearing before state regulators.
Eric Sander, of Morton Grove, has been licensed to practice law in Illinois since 2012. A complaint filed last month on behalf of the administrator of the Illinois Attorney Registration and Disciplinary Commission alleges four counts of misconduct involving three real estate transactions and record-keeping failures.
The allegations include instances of misusing client money from an interest on lawyer trust account, known as an IOLTA, which attorneys are required to use to hold clients’ funds separately from their own.
Find out what's happening in Niles-Morton Grovewith free, real-time updates from Patch.
In April 2022, while representing the seller of a home in Lake in the Hills, Sander took a $7,500 check from a buyer to hold as earnest money until the deal closed.
The next month, the account balance dropped by about $1,780, even though the money had not been disbursed and the closing had yet to take place, according to the complaint, which alleges that Sander used the money for unauthorized personal or business expenses.
Click Here: Marco Reus Jersey Sale
Find out what's happening in Niles-Morton Grovewith free, real-time updates from Patch.
In June 2022, Sander deposited $12,998 in his IOLTA, money supposed to be held in escrow to be released under the terms of a proration agreement pending the release of a tax bill, according to the complaint.
But the next month, before any of the escrowed funds had been disbursed, Sander’s account balance had dropped by about $2,680, it said.
Again, state attorney regulators allege that Sander used the money for his own improper ends.
A third real estate transaction described in the Aug. 22 complaint involves the purchase of a home in Arlington Heights.
In January 2023, a client of Sander’s gave him $5,000 for the purchase of the house. But when the time came to close in March 2023, his IOLTA account was about $1,4000 short, the complaint said.
Attorney regulators also allege that Sander failed to properly maintain required records for his IOLTA account during the period in question — April 2022 and March 2023 — in violation of another Supreme Court rule, in addition to the one that forbids “conduct involving dishonesty, fraud, deceit or misrepresentation.”
In response to an inquiry from Patch, Sander admitted misappropriating his clients funds from the IOLTA account because he needed money to pay for his suburban single-family home and private school for his two children.
“I was in a tough spot and had to borrow money from my IOLTA to pay my mortgage and kid’s tuition,” Sander said in an email.
It is not possible to legally “borrow” money from an interest on lawyer trust account, according to the American Bar Association.
Sander blamed a client’s lack of money for triggering the discovery of his misconduct.
“One check that was deposited into my IOLTA on behalf of a client bounced, which threw the balance off and caused a second check to bounce and cause this situation,” he said. “Every last dime was returned to the account and not a single person was harmed.”
Sander has not yet filed an answer to the ARDC request for hearing before a disciplinary panel, where findings will be made and disciplinary action, if warranted, will be recommended.
He is entitled to present a defense during the proceedings. And, as of now, he remains licensed to practice law in Illinois.
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.