The legal profession is built on trust. The moment an attorney receives a client’s money—whether it’s a retainer, an advance for costs, or a settlement check—they assume a fiduciary duty to protect those funds as if they were gold.
A recent, critical case out of Georgia serves as a chilling, definitive warning against violating this duty. Attorney William Keith McGowan was disbarred in 2025 by the Supreme Court of Georgia for the intentional misappropriation and conversion of client settlement funds.
McGowan’s downfall didn’t stem from incompetence; it stemmed from dishonesty—a direct and knowing abuse of the specialized accounts designed to protect client money: the IOLTA account.
Case File: William Keith McGowan’s Fatal Error
McGowan’s disbarment centered on a personal injury case that settled for $30,000. The disciplinary proceedings revealed a calculated breach of ethical rules:
- The Conversion: McGowan deposited the $30,000 settlement into his firm’s trust account (an IOLTA account). He then made unauthorized transfers, moving $17,400 belonging to the client into his firm’s operating account for his personal use. This act is the ethical equivalent of theft and is known as commingling and conversion.
- The Deception: When the client questioned the delay in receiving her money, McGowan lied. He falsely claimed he was negotiating with the client’s health insurer to resolve a lien, using the purported negotiation as an excuse to keep the stolen funds.
- The Outcome: The court found that this conduct was knowing and intentional and caused significant financial harm to the client. The ruling was clear: despite a previously clean disciplinary record, intentional misappropriation of client funds warrants mandatory disbarment.
What is an IOLTA Account, and Why is it Sacred?
The term IOLTA stands for Interest on Lawyers’ Trust Accounts. It is not just any bank account; it is a critical instrument in legal ethics.
The IOLTA Distinction: Separating Client Money from Firm Money
| Account Type | Purpose of Funds | Interest Earned Goes To |
| Operating Account | Law firm revenue, earned fees, salaries, and business expenses. | The law firm. |
| Client Trust Account (IOLTA) | Unearned client funds (retainers, settlements, escrows) that are either nominal in amount or held for a short period of time. | A state-run charitable foundation (like the Lawyers Trust Fund) to fund civil legal aid for the poor. |
| Separate Interest-Bearing Account | Large client funds or funds held for a long period that can generate net interest for the client. | The individual client. |
The core principle is segregation. An attorney must never commingle their own money with client money. The IOLTA account is where all unearned funds must sit, securely held in trust for the client. The rules are structured so that the lawyer can never benefit from the client’s money.
The Zero-Tolerance Policy: Rule 1.15
McGowan was disbarred because he violated fundamental rules, primarily Rule 1.15 (Safekeeping Property) and Rule 8.4(a)(4) (Dishonesty, Fraud, Deceit, or Misrepresentation).
When a lawyer:
- Takes money from the IOLTA account before it is earned (conversion).
- Lies about the status of a client’s money (dishonesty).
- Transfers client money to a firm operating account (commingling).
they have shattered the foundational ethical contract.
The Ruling’s Message: The Georgia Supreme Court used McGowan’s case to affirm an unequivocal principle: intentional theft of client money, even if it’s the first offense, is a disbarrable offense. No mitigating factors can offset the damage done to the public’s trust.
Conclusion: The Lesson for All Attorneys
The disbarment of William Keith McGowan is not just a footnote in legal disciplinary history; it is a crucible of professional ethics.
For every attorney, this case serves as an absolute reminder: your IOLTA account is not an extension of your business line of credit or a slush fund. It is a sacred reservoir of funds belonging to clients, protected by the State Bar. Failure to implement rigorous, transparent, and compliant accounting practices, and choosing dishonesty over diligence, is the quickest way to end a career.
The integrity of the justice system relies on the absolute honesty of its officers, especially when entrusted with the property of vulnerable clients. The Court’s decision is a necessary shield protecting the public from those who violate that trust.