Court suspends license of Cedar Rapids attorney 

CEDAR RAPIDS - A Cedar Rapids attorney was suspended last week by the Iowa Supreme Court for failing to cooperate with an audit and investigation of her client trust accounts.

Sheree Lynn Smith, a lawyer who mostly practiced family law, was issued a notice of delinquency Aug. 18 by the Client Security Commission based on her failure to comply with a rule requiring attorneys to cooperate with an audit, according to the order filed Nov. 7. An auditor made multiple attempts to get documentation of Smith's accounts, but she didn't provide the documents to the commission.

Smith couldn't be reached for comment Wednesday. Her law office number has been disconnected.

During a hearing, Smith, who represented herself, said most of the information the commission wanted was lost when her computer crashed and she wasn't able to retrieve it according to the order. She also said she provided some of the documents listed as missing in the commission's notice and gave other reasons why didn't couldn't provide others.

'She complains the commission is seeking far more information than in prior audits,” Justice David Wiggins stated in the order.

Smith also claimed she brought an affidavit and multiple documents to the hearing to file with the commission, according to the order. The commission denied that Smith furnished the documents listed in the notice of delinquency and asked that Smith be suspended.

Wiggins said the court finds that Smith didn't take the necessary steps to comply with the notice and her belated attempts to obtain information and file documents at the hearing were not sufficient to avoid suspension.

Smith's law license was suspended Nov. 7, and the suspension applies to her entire practice of law. The suspension will continue until the Client Security Commission certifies that Smith has fully complied with the notice of delinquency, Smith has filed proof of compliance and the court enters an order reinstating her license.

Another attorney, Susan Hense, was disbarred last year following complaints and an audit and investigation of her client trust accounts. She admitted at the time of her disbarment to taking over $800,000 from her client trust accounts and using the money for her gambling addiction. She was then criminally charged in federal court and pleaded guilty to wire fraud last month. She admitted to stealing $837,011 from 15 former clients. She faces up to 20 years in prison and will be ordered to pay $837,011 in restitution. Her sentencing hasn't been set at this time. Hense also faces a first-degree theft charge in Tama County District Court. She is accused of writing five bounced checks between Oct. 3 and 5, 2012 to the Meskwaki Casino for cash, totaling $13,000, according to a criminal complaint. A trial date hasn't been set.