Bill > A10145

This bill directs the chief administrator of the courts to create and implement a statewide random audit compliance program to periodically check law firms that handle real estate escrow trust accounts, which are accounts holding client funds. The goal is to ensure these firms properly manage client money, maintain accurate records, and follow accounting rules, thereby preventing misuse of funds and detecting any misappropriation. The program will use a software system to randomly select law firms for audits, ensuring every firm has an equal chance and that no firm is audited more than once every five years unless there's a specific reason for cause. Audits will involve reviewing various financial records and bank statements for a two-year period, and the findings will determine whether a firm receives a compliance letter, a deficiency letter requiring corrective action, or if major issues like misappropriation lead to a referral to disciplinary committees. The program will be funded by the Lawyers' Fund for Client Protection, and auditors will need advanced accounting or fraud examination credentials.

Justice

https://www.nysenate.gov/legislation/bills/2025/A10145