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Clients compensated for disbarred attorney's misappropriations

Posted by: Jane Friedmann under Whistleblower Updated: March 7, 2013 - 4:09 PM

 A fund that reimburses legal clients for financial losses suffered at the hands of their lawyers has recently paid out $85,539 in compensation to four clients, according to an announcement by the Minnesota Client Security Board on Wednesday.

In February, the board approved a total payout of $85,139 to satisfy three claims against Minneapolis attorney Deno W. Berndt, who was disbarred in March 2012. Including these three claims, the board has approved eight claims against Berndt totalling $184,315.

The board also approved a $400 claim against deceased Chaska attorney Richard J. Haefele.

The board administers the Client Security Fund, which covers many instances in which a lawyer steals money or property from a client. The fund does not compensate clients for a lawyer's incompetence, malpractice or negligence. It is funded through attorney registration fees. 

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