The Michigan Attorney Discipline Board has issued a reprimand with conditions against David M. Sinutko (P52801) of Utica, Michigan, effective September 27, 2025, following consent discipline proceedings involving misuse of a client trust account.
The discipline was imposed pursuant to Michigan Court Rule 9.115, which governs attorney discipline proceedings.
Background: IOLTA Overdrafts and Consent Discipline
According to the notice, Sinutko and the Grievance Administrator entered into a Stipulation for Consent Order of Discipline under MCR 9.115(F)(5). The stipulation was approved by the Attorney Grievance Commission and accepted by Tri-County Hearing Panel #102.
Sinutko entered no contest pleas to the factual allegations in the formal complaint. The complaint detailed that Sinutko’s IOLTA account became overdrawn after more than $54,000 in transactions were presented without sufficient funds, resulting in overdrafts exceeding $27,000 and $26,000.
Although many transactions were dishonored and Sinutko later deposited funds to cover them, he initially attributed the overdrafts to a clerical error and self-reported the issue.
Subsequent investigation revealed that the transactions were connected to an online gambling platform. Between January 2023 and February 2024, Sinutko misused his IOLTA by depositing personal funds, leaving earned fees in the account, paying personal and business expenses from the trust account, and engaging in gambling-related transactions.
Misconduct Findings
Based on Sinutko’s no contest pleas and the parties’ stipulation, the hearing panel found violations of the Michigan Rules of Professional Conduct and Michigan Court Rules, including:
- Depositing personal funds into an IOLTA, in violation of MRPC 1.15(a)(3).
- Depositing personal funds into an IOLTA in excess of amounts permitted to cover bank service charges, in violation of MRPC 1.15(f).
- Engaging in conduct prejudicial to the administration of justice, in violation of MCR 9.104(1) and MRPC 8.4(c).
- Engaging in conduct exposing the legal profession or courts to obloquy, contempt, censure, or reproach, in violation of MCR 9.104(2).
- Engaging in conduct contrary to justice, ethics, honesty, or good morals, in violation of MCR 9.104(3).
Panel Order and Sanctions
In accordance with the parties’ stipulation, the hearing panel ordered that:
- Sinutko be reprimanded.
- Sinutko comply with conditions relevant to the established misconduct.
- Sinutko pay costs in the amount of $935.99.
No suspension was imposed.
What This Means
Michigan’s trust account rules strictly prohibit the use of IOLTA accounts for personal transactions or earned fees beyond narrow exceptions. Even when overdrafts are self-reported and later covered, misuse of trust accounts undermines public confidence in the profession and can result in public discipline and imposed conditions.
This case underscores that IOLTA violations, particularly those involving personal spending or gambling-related activity, are treated as serious ethical breaches regardless of intent.
