On Tuesday, March 12, 2024, The Salem News Online reported that the Supreme Court of Missouri heard oral arguments regarding potential disciplinary actions against James T. Crump, a Phelps County attorney and the municipal judge of Rolla for the past 11 years.
Crump had been accused of multiple violations of professional conduct rules relating to his role as the trustee of the Chester Green Trust and Helen Green Trust since 1998. It was alleged that in May 2017, Crump took out approximately $42,000 in loans from the trusts to pay overdue federal payroll taxes owed by his law firm. According to records, Crump had withheld taxes from employee paychecks but failed to remit the funds to the IRS. He issued himself a promissory note for the loan without informing the trusts’ beneficiaries.
Later that year, Crump allegedly took a second loan from the trusts to again pay overdue payroll taxes. As with the first loan, he drafted a promissory note without the beneficiaries’ knowledge. When notifying beneficiaries of outstanding trust loans upon the passing of Chester and Helen Green, Crump’s documentation omitted any mention of the personal loans he had issued himself in 2017.
An audit conducted in 2021 reportedly showed irregularities in transfers between Crump’s client trust account and the trusts. Records indicated Crump paid $52,000 in interest on his personal loans to the trusts from his firm’s operating account, though he was not current with payments owed. When questioned by an attorney retained by beneficiaries, Crump admitted to issues in maintaining loan repayments.
A disciplinary hearing panel found Crump in violation of rules regarding proper maintenance of client accounts as well as conflicts of interest. While disbarment is typically warranted for such misconduct, the panel recommended a three-year suspension without the ability to reapply. However, Crump objected to this recommendation, believing suspension with probation is the more suitable punishment. The chief disciplinary counsel seeks disbarment. A decision remains pending from the Supreme Court of Missouri.
Source: The Salem News Online
