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Question: Let's consider the exceptions to the duty of confidentiality and the attorney-client privilege. Probably one of the most important exceptions in both doctrines is that that relates to a client's wrongdoing. Consider the crime-fraud exception to the evidentiary privilege, which provides that the privilege does not apply where legal representation was secured in furtherance of intended, or present, continuing illegality. The rules of professional conduct in all states provide exceptions to confidentiality for some illegal conduct - though the states vary dramatically in the scope of those exceptions.
Suppose that an attorney is aware of a client's financial fraud that would take the client's communications outside the protection of the privilege (because of the crime-fraud exception) but under the rules of professional conduct in that state the attorney does not have the discretion to disclose financial frauds. Where does that leave the attorney?
A. The attorney can not voluntarily disclose the client's misconduct, but if attorney's testimony is sought in a proceeding, the attorney will be required to testify.
B. The attorney may report the client's fraud to a government official because there is no attorney-client privilege in place.
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