St. Louis attorney Troy Remel Penny has been reprimanded following a Sept. 26 Missouri Supreme Court order after allegations of irregularities in his client trust account, including two overdrafts and paying his state taxes directly from the account.
The state supreme court found Penny in violation of professional conduct rules over the alleged irregularities, according to the order. The high court also ordered Penny to pay a fee of $750.
Penny was admitted to the bar in Missouri on Sept. 18, 2002, according to his profile at the Missouri State Bar's website.
In March 2014, chief disciplinary counsel’s office received two bank reports advising that Penny had overdrawn his client trust account, according to a 20-page brief filed in the matter by the office. The subsequent investigation found two overdrafts of the trust account after payment was stopped on a check for damages that had been due to one of Penny’s clients, according to the brief.
"He made disbursements from his trust account as he believed the check was deposited correctly," the brief said. "This resulted in overdrafts on his trust account."
The investigation also found Penny made payments from the client trust account to pay his state taxes and his tax preparer using earned fees in that account that had not been transferred to his operating account, according to the brief.
The alleged irregularities occurred in late 2013, according to the brief.
In his own brief filed with the high court, Penny said that he was dealing with numerous personal and business issues in the fall of 2013.
After the investigation the chief disciplinary counsel's office began disciplinary proceedings against Penny. A regional disciplinary hearing panel found Penny had committed three separate acts of misconduct in violation of professional conduct rules, according to the brief.
The past November the regional disciplinary hearing recommended that Penny be reprimanded. Penny accepted but the chief disciplinary counsel rejected that recommendation in December, according to the brief. Instead, the chief disciplinary panel asked the state high court to hand down a stayed suspension and to place Penny on probation, according to the brief.