Bill > S09129

This bill directs the chief administrator of the courts to create and implement a statewide random audit compliance program to periodically examine the financial accounts of law firms that handle real estate escrow trust accounts, which are accounts holding client funds. The program aims to ensure law firms properly manage client money, maintain accurate records, and use sound accounting practices, with the goals of educating attorneys on compliance, deterring misuse of funds, and detecting any misappropriation of client money. A software program will be used to randomly select law firms for audits, ensuring every firm has an equal chance and that a firm is not selected for a random audit more than once every five years, though audits for cause can still occur. Audits will cover all of a firm's offices within the state, and firms will be required to provide extensive financial records for a two-year period. The program will be funded by the Lawyers' Fund for Client Protection, and auditors will need advanced accounting or fraud examination credentials. The bill also clarifies that the Lawyers' Fund for Client Protection will be used to fund this new audit program.

Justice

https://www.nysenate.gov/legislation/bills/2025/S9129