This fact (nicely analyzed by White Collar Crime Profs Blog) is too much. In class I often use the image of the ethics ostrich (which I can no longer remember whether I thought up or lifted from someone else) to describe people who stick their heads in the sand to avoid actual knowledge. There are good Friendly and Posner opinions on why this doesn't work. But to stick your head in the sand after acquiring knowledge? Geez.
Maybe the lawyer in question took some unreported action to verify the legality of this practice. One hopes.
Note to self: "I shouldn't have asked" looks bad.