Chester County lawyer Samuel C. Stretton. Courtesy photo

A lawyer should closely scrutinize IOLTA and escrow checks, and actually sign them.

My practice has been growing and I want to know who can have signing powers on my IOLTA and other escrow accounts. Further, can a signature stamp be used?  

In years past, the practice was somewhat loose in terms of who signed IOLTA checks or escrow account checks for a law firm. Lawyers often would have their secretaries do so, sometimes the receptionist, sometimes other lawyers, and ofte times a signature stamp was used. This turned out to be a somewhat dangerous practice because shockingly and surprisingly, long-trusted nonlawyer staff were found to be taking and misusing the funds. There is nothing more sad, and self-maddening than to have a trusted staff member, sometimes of 20 or 30 years, and then suddenly discover escrow funds are missing, which were taken by a staff member. Sometimes, that trusted member had a tragedy in his life, or addiction issues, or even early forms of dementia.

The issue becomes supervision. A lawyer, under Rule 5.3, has to properly supervise and train nonlegal staff. A lawyer also has the duty to protect their IOLTA and escrow accounts, and not allow anyone to have access to it unless needed, and unless fully supervised.