Lawyers May Need to Investigate Suspicions, N.Y.C. Bar Says

A lawyer who is suspicious about the legality of a transaction requested by a client may need to investigate further, the New York City bar’s ethics committee said July 18.

The opinion echoes the advice given by a panel of professional responsibility lawyers at the American Bar Association’s 44th National Conference on Professional Responsibility—ignoring red flags could lead to wearing an orange jumpsuit.

The committee considered the scenario where a transactional lawyer was asked to assist with the sale of a business. Sale proceeds were to be sent to a bank “in a well-known secrecy jurisdiction.”

The lawyer believed the ...