High court reprimands attorney

Wednesday, March 25, 1998 | 10:46 a.m.

CARSON CITY -- The Nevada Supreme Court has issued a public reprimand to attorney Laurence McNabney, who has offices in Las Vegas, Reno and Elko, for not safeguarding the money of his clients.

Shortly after opening his Las Vegas law office in July 1995, McNabney ran into financial troubles.

His chief operating officer, who was not identified in the court order, transferred $74,000 out of client accounts to keep the Las Vegas office running. The officer then transferred money out of McNabney's personal account to cover the client funds.

Although he borrowed money to replenish his client accounts, the court said McNabney "failed to make reasonable efforts to ensure that your employee's conduct was compatible with your professional obligations as an attorney."

The court on Monday said McNabney violated rules for maintaining trust funds, overseeing his non-lawyer assistants and the safekeeping of property.

The court also publicly reprimanded Las Vegas attorney Kevin Sewell who practiced law for about 18 months during 1995-96 when he was on inactive status as a lawyer.

Sewell, who will be on probation for one year, had been taken off the active list of practicing lawyers because he failed to complete his continuing legal education requirements.

He was reinstated to practice law in 1996 but he failed to respond to requests from the Nevada Bar Association for information on his actions.