19、Is Johnson in violation of the Code and Standards if he informs the legal authorities that Campbell is attempting to hide assets from the courts?

A)   No, because Campbell is technically not a client until she gives Johnson some money to manage.

B)   Yes, because Johnson has only hearsay information about illegal activity and he would need written documentation to justify notifying the legal authorities.

C)   Yes, because he would be violating client-member confidentiality.

D)   No, because Campbell has done something illegal.

The correct answer was D)     

Johnson is not in violation of the Code and Standards if he informs the legal authorities that Campbell is attempting to hide assets from the courts, because Campbell has done something illegal. According to Standard III(E), the rules of confidentiality do not apply when a member receives information concerning illegal activities.