State Bar sues, says its money is missing

Even an organization that can call on the best and brightest legal minds for help apparently can be taken in by smooth talkers.

The State Bar of Nevada announced Monday that it has filed a lawsuit in St. Louis against two Missouri companies and their chief executives on allegations that they embezzled $300,000 in bar funds that they were supposed to invest in certificates of deposit.

David Clark, deputy bar counsel, said the State Bar has invested $3.2 million with the two companies since 1999.

Rate Search Inc. and Clayton Analytical Services were supposed to use the money to purchase Federal Deposit Insurance Corp.-insured certificates of deposit yielding a high rate of interest, he said.

But this summer the State Bar could not find three $100,000 certificates of deposit, Clark said.

In the lawsuit, State Bar lawyers allege that Scott Luster, president of Rate Search, and Clark Schultz, president of Clayton Analytical, "improperly and fraudulently placed" the certificates in their names and the names of others. They also allege that other State Bar funds were converted to the use of the two men.

Clark said law enforcement officials, district attorney, attorney general and Nevada Supreme Court have been notified of the potential embezzlement. Members of the State Bar have been sent letters.

The State Bar has secured a restraining order to protect other certificates of deposit purchased through the two men and their companies.