The Iowa Supreme Court’s Board of Professional Ethics and Conduct recently admonished two attorneys associated with the Marie Powers estate.

Steve Zumbach, a Des Moines attorney, has been admonished for a conflict of interest for working with the Agricultural Foundation while representing the ISU Foundation and Iowa State University.

Powers left her farm to the Ag Foundation to manage after her death in 1995. Her estate was later sold against her wishes and the $1.2 million was used to fund other projects.

Zumbach’s letter of admonishment states, “[Zumbach’s] direction to an associate to draft an application on behalf of the Iowa State University Foundation, without confirming he was, in fact representing the agricultural foundation, was a conflict of interest contrary to DR 5105 of the Iowa Code of Professional Responsibilities for Lawyers.”

In a written statement to the Daily, Zumbach said it was a matter of timing and communication.

He said he was advised by former university vice president Murray Blackwelder that he and David Topel, former dean of the College of Agriculture and member of the Ag Foundation Board of Directors, wanted Zumbach’s firm to undertake a research project regarding the Marie Powers farm.

“The problem identified by the Ethics Committee was that before tasking out the research, I did not immediately confirm with Dean Topel that the Ag Foundation wanted me to do the research,” Zumbach said. “Dean Topel later confirmed that the Ag Foundation wanted the research undertaken.”

Crumley, a Fort Dodge attorney, declined to comment.

Crumley’s admonishment states, “his failure to adequately review the application he signed, which application alleged a fact he knew to be untrue, was a neglect of a legal matter contrary to DR 6101 A3 of the Iowa Code of Professional Responsibilities for Lawyers.”

Crumley signed a document stating there were no buildings on the Powers farm, when in fact there were several.

Zumbach received the letter of admonishment last December. He said an admonishment is not disciplinary.

“They are more in the nature of suggestions for better practice,” he said. “Though I do not agree with the Committee’s decision, I accept it.”

The Iowa Board of Professional Ethics investigates complaints made against an attorney. After a hearing, the Board will dismiss the complaint, issue a private admonition, or recommend to the Supreme Court that the attorney be reprimanded or the attorney’s license to practice law be suspended or revoked.

Paul Wieck, executive director of the Iowa Supreme Court Commissions, said in an e-mail that admonishments are an expression of disapproval.

“An admonition is the least serious consequence of a complaint against an attorney, aside from outright dismissal of the complaint,” he said.

Wieck also said admonishments are usually considered a private matter.

Mark Gannon, former land manager with the ISU Ag Foundation, said the admonishments reflect more on the Foundation than the attorneys’ actions.

“The attorneys do what the Foundation tells them to do,” he said. “It is as much an admonishment of the Foundation.”

Bill Kunerth, an open-records advocate and former professor in the Greenlee School of Journalism and Communication, said this situation further displays the need for accountability.

“This is a clear example of why there has to be complete openness in the operation of foundations except for individual donors who do not want to be identified,” he said.

Kunerth said Zumbach lobbied against bills to make foundation records public.

“It is interesting that Mr. Zumbach has been one of the strongest opponents of opening the records of the ISU Foundation,” he said.

Foundation officials said Zumbach is one of their retained legal counsels.

Phyllis Lepke, vice president for public information and legal affairs for the ISU Foundation, said the Foundation Board of Directors has retained outside council to review the situation.

“This independent opinion is good business practice,” she said.

Lepke said the Foundation reviews relationships on an ongoing basis.

Ann Wilson, foundation director of communications, said the situation has not affected donors.

“They regard this as a separate matter,” she said.