Khakshooy represented an employee injured in an auto accident while on the job and pursued a third-party claim against the other driver. A workers’ compensation administrator (ESIS), via RSI, notified Khakshooy of a statutory lien. Khakshooy failed to respond to civil discovery, did not inform his client of the requests or an ensuing order compelling responses with monetary sanctions, and then failed to oppose or inform the client about a motion for terminating sanctions. The insurer later offered $8,000 to settle; the client accepted and signed a release. The check named RSI as a payee, preventing deposit into trust until lien authorization. For more than two years after settlement, the client repeatedly asked for his money; Khakshooy eventually paid from his general account and only much later obtained permission to negotiate the check. :contentReference[oaicite:12]{index=12}

The Review Department found additional culpability beyond the hearing judge’s decision: failure to deposit client funds into trust (rule 4-100(A)); failure to promptly pay client funds (rule 4-100(B)(4)); and failure to render an adequate accounting (rule 4-100(B)(3)) because his disbursement sheet lacked dates, amounts, payees, and purposes for each transaction. It also affirmed culpability for failing to keep the client reasonably informed of significant developments (§6068(m)) and for disobeying a court order (§6103), holding that lack of formal service of the sanctions order did not excuse noncompliance where the order was final and binding for disciplinary purposes. :contentReference[oaicite:13]{index=13}

On sanction, the court applied the most severe applicable Standard for the mishandling of client funds and increased the actual suspension to 90 days (with stayed suspension and probation), concluding that mitigation did not outweigh aggravation sufficiently to depart from the Standards. The decision underscores core trust-accounting duties surrounding third-party liens: deposit settlement funds in CTA when received for the client’s benefit, promptly resolve lien issues, pay the client without undue delay, and render a proper accounting. :contentReference[oaicite:14]{index=14}