Category Archives: Attorney misrepresentation

Illinois imposes one year suspension on (former) law firm partner who falsified and received $69,800.00 in client expense reimbursement

Hello everyone and welcome to this Ethics Alert which will discuss the recent Illinois Supreme Court Order which imposed a one year suspension on a law firm partner who falsified and received $69,800.00 in client expense reimbursement claims.  The case is In re: Lee Mark Smolen, Disciplinary Commission, M.R.27199, No. 2013PR00060 (March 12, 2015).  The summary disciplinary Order is here: http://www.state.il.us/court/SupremeCourt/Announce/2015/031215.pdf

As I reported in my January 12, 2015 Ethics Alert, a law firm audit found that the lawyer had submitted $69,800.00 in falsified taxi expenses and questioned an additional $379,000.00 reimbursed expenses.  The lawyer admitted that he “falsified and submitted for reimbursement more than 800 receipts for cab rides he did not take. He further admits he received reimbursement totaling $69,800 for the fabricated receipts.”

According to the Hearing Board Report, the expenses were charged to an unallocated client account which was “virtually unmonitored”.  The lawyer agreed that the law firm could withdraw $400,000.00 from his account to cover the expenses and the cost of the audit and he testified he used the cab money to pay for client entertainment, saving the time of making out expense reports.  He testified that he only slept three or four hours a night and typically spent 12 to 15 hours a day at work.

The Report further stated that the lawyer’s “mental health issues and his misconduct” were considered and one doctor opined there was a “loose association” between the lawyer’s personality disorder and his misconduct because the lawyer “was excessively devoted to work as a result of his obsessive-compulsive disorder.”  Another doctor stated that the lawyer’s depressive disorder and anxiety disorder led to “tremendous impairment of judgment” which led to the misconduct.  Both doctors found that the lawyer’s mental health played at least a minor role in his misconduct and gave it “some weight” as a mitigating factor.

 

According to the Report:  “We recognize that the amount of Respondent’s falsified expenses is greater than the amounts in the (cited) cases but in light of (the lawyer’s) significant mitigation we do not believe a suspension of more than one year is warranted.  We believe a one-year suspension addresses the severity of the misconduct and also takes into consideration the substantial mitigating factors.”

The Report recommended that (the lawyer) be suspended for one year and until he completed at least twelve months of continuous treatment with a psychiatrist. The lawyer’s suspension would terminate after one year if he “demonstrates his completion of treatment to the Administrator’s satisfaction.”  The Illinois Supreme Court adopted the Report and suspended the lawyer for one year with the recommended conditions.

Bottom line:  As I said previously, this lawyer admitted that he falsified and submitted for reimbursement more than 800 receipts for cab rides he did not take and received payment for nearly $70,000.00 from clients for the fabricated receipts.  An audit also questioned an additional $379,000.00 in reimbursed expenses.  In light of the large amount of the lawyer’s admitted misappropriation, it is surprising that the Board did not recommend disbarment for the misconduct and also that the Illinois Supreme Court approved the one year suspension recommendation.

Be careful out there.

Disclaimer:  this e-mail is not an advertisement, does not contain any legal advice, and does not create an attorney/client relationship and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

2454 McMullen Booth Road, Suite 431

Clearwater, Florida 33759

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Filed under Attorney discipline, Attorney Ethics, Attorney misrepresentation, deceit, dishonesty, joe corsmeier, Joseph Corsmeier, Lawyer conduct adversely affecting fitness to practice, Lawyer discipline, Lawyer ethics, Lawyer Ethics and Professionalism, Lawyer expense reimbursement, Lawyer misappropriation, Lawyer misrepresentation, Lawyer misrepresentations to law firm re billings, Lawyer Professionalism, Lawyer sanctions

Louisiana Disciplinary Board recommends year and one day suspension for lawyer who allegedly offered bribe to a witness and lied about it

Hello everyone and welcome to this Ethics Alert which will discuss the recent Louisiana Attorney Disciplinary Board Recommendation of a one year and one day suspension for, inter alia, alleged attempts to bribe a witness and false statements denying the misconduct. The disciplinary opinion is In re: Donald R. Pryor, No: 13-DB-036 (February 5, 2015) and the disciplinary recommendation is online here: https://www.ladb.org/DR/handler.document.aspx?DocID=8353

According to the Recommendation, the Disciplinary Committee found that the following facts were established: “Respondent represented Ms. Winborn, who was charged with simple burglary of an inhabited dwelling in the criminal proceeding State of Louisiana v. Emily Winborn, Case Number 498-791, Sec. A, of the Criminal District Court for the Parish of Orleans. Mr. Bode’s neighbor saw Ms. Winborn exiting Mr. Bode’s house carrying the black camera bag where he kept his gun. When Mr. Bode returned home after the neighbor called him, he discovered that his gun was gone. Ms. Winborn was charged with entering Mr. Bode’s home and stealing a gun. Respondent came to a restaurant Mr. Bode owns with his daughter and offered him $300 to drop the charges against Ms. Winborn. During the first visit Mr. Bode told Respondent that he had found the gun and that he would not drop the charges. The day before Ms. Winborn’s trial, Respondent came to the restaurant again and offered Mr. Bode $500 not to show up in court for Ms. Winborn’s trial. Ms. Winborn was convicted of the crime.” (emphasis supplied)

The Disciplinary Committee found that “(t)his matter came down to credibility. Mr. Bode was a credible witness, with no apparent motive to lie about his interactions with Respondent. For the most part, Respondent admitted to the facts as Mr. Bode related regarding the two visits at the restaurant. The significant divergence was that Respondent contended that the payment was only restitution, and whether Respondent offered $500 to induce Mr. Bode to fail to appear at the trial.”

“(A)fter hearing the testimony, observing the witnesses demeanors, and considering the logical interpretation of the interactions, the Committee finds that Respondent went to visit Mr. Bode at the restaurant where he worked and offered him $300 as payment if he would to agree to drop the charges against Ms. Winborn. Although Respondent calls the $300 an offer of restitution, it clearly was conditioned upon Mr. Bode agreeing to drop the charges. When Mr. Bode refused, he was not paid the ‘restitution.’ Moreover, payment for the loss of the gun was not necessary because Mr. Bode told Respondent that he had found the gun.”

“The second visit, which occurred ten days later and the day before the trial, included an increased offer of $500 as payment for not showing up on the day of trial. Although Respondent attempted to show that Mr. Bode’s memory was failing, the details he did remember – along with a lack of true motive to lie either at trial or the hearing – leads the Committee to believe Mr. Bode’s version of the facts.”

“Thus, clearly the initial $300 was offered not as “restitution,” but strictly as a bribe for Mr. Bode to dismiss the charges against Respondent’s client. In addition, the $500 was offered, on the day before the trial, and as a last resort, so that Mr. Bode would not appear at the trial and thus make it more likely that the charges would be dropped. Respondent’s conduct was a criminal act reflecting adversely on Respondent’s honesty, trustworthiness and fitness as a lawyer, and was conduct prejudicial to the administration of justice. His testimony at the hearing also involved dishonesty, fraud, deceit or misrepresentation.

The Disciplinary Committee recommended that the lawyer be disbarred. The Disciplinary Board adopted the Disciplinary Committee’s finding of fact and conclusions of law and finding that Respondent violated Rules 8.4(a) through (d). After confirming that “(i)t is well-settled that the baseline sanction for misconduct arising out of felony convictions involving bribery is disbarment” and discussing the mitigating and aggravating circumstances, the Disciplinary Board reduced the recommended discipline to a suspension of one year and one day, which would require a showing of rehabilitation.

Bottom line: According to the Louisiana Disciplinary Board Recommendation, this lawyer offered a bribe to a witness to “fail to appear at trial” and engaged in misrepresentation, fraud, deceit, or misrepresentation by denying that he offered the bribe. Notwithstanding these facts, the Board surprisingly reduced the recommended discipline from disbarment to a suspension of one year and one day. The Louisiana Supreme Court will now review the recommendation and issue a final disciplinary opinion.

Be careful out there.

Disclaimer: this e-mail is not an advertisement, does not contain any legal advice, and does not create an attorney/client relationship and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire
Law Office of Joseph A. Corsmeier, P.A.
2454 McMullen Booth Road, Suite 431
Clearwater, Florida 33759
Office (727) 799-1688
Fax (727) 799-1670
jcorsmeier@jac-law.com
http://www.jac-law.com

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Filed under Attorney discipline, Attorney Ethics, Attorney misrepresentation, deceit, dishonesty, fraud, joe corsmeier, Joseph Corsmeier, Lawyer conduct prejudicial to the administration of justice, Lawyer discipline, Lawyer ethics, Lawyer Ethics and Professionalism, Lawyer false statements, Lawyer false testimony, Lawyer misrepresentation, Lawyer sanctions

Pennsylvania lawyer receives 2 year stayed suspension for neglecting cases and paying sanctions with firm funds without telling firm or client

Hello everyone and welcome to this Ethics Alert which will discuss the recent Pennsylvania Supreme Court opinion which imposed an agreed 2 year stayed suspension with probation for a lawyer who neglected client cases over two years, had monetary sanctions imposed on him and paid the sanctions out of firm operating funds without telling his partner or the client, and deceiving client by claiming that his billings were for legal services and not sanctions. The disciplinary opinion is Office of Disciplinary Counsel v. Christopher Roulhac Booth, Jr., No. 106 DB 2013 (Pa. SC 11/13/14) and the opinion and disciplinary board report are online here: http://www.pacourts.us/assets/opinions/DisciplinaryBoard/out/106DB2013-Booth.pdf

According to the opinion and consent agreement, the lawyer neglected cases for over 2 years, had $65,000.00 in monetary sanctions imposed on him and paid the sanctions out of firm accounts without telling his partner or the client. The lawyer had concealed his conduct from his partner and the client, Wachovia Bank. After Wachovia learned of the defaults and sanctions they terminated the firm and hired other counsel.

The lawyer also took additional funds from the law firm’s operating account. According to the consent agreement “(d)uring his tenure with (the law firm), Respondent dispersed, or caused to be dispersed, monies from the firm’s operating account in an amount in excess of $117,000, which disbursements he concealed from the firm and which were in excess of the fees and profits of the partnership to which he would have been entitled under the partnership agreement. Respondent has repaid the firm the amount of $40,000 and has arranged for the repayment of the remainder of the funds by relinquishing fees that were due to Respondent.”

The consent agreement states: “the instant matter does not involve the misappropriation of client funds; rather it involves the ‘misdirection’ of operating funds and subsequent misrepresentation to Respondent’s partner of the true purpose of the use of the operating funds, which was to satisfy sanctions orders resulting from Respondent’s neglect. Furthermore, Respondent attempted to deceive the client, Wachovia, into believing that Respondent’s billings were for services rendered rather than for services and sanctions.”

The consent agreement stated as mitigation that the lawyer had self-reported the misconduct and suffers from depression and in aggravation, that the lawyer had served as a member of a Pennsylvania disciplinary hearing committee.

Bottom line: This lawyer was found to have neglected cases over 2 years, had monetary sanctions imposed upon him and paid the $65,000.00 in sanctions out of his law firm’s operating account without telling his partner or the client and making false statements to the client, and improperly taking an additional $117,000.00 from the firm’s operating account. In other states, including Florida, this lawyer may or would have received a much more severe sanction, including potentially disbarment.

Disclaimer: this e-mail does not contain any legal advice and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire
Law Office of Joseph A. Corsmeier, P.A.
2454 McMullen Booth Road, Suite 431
Clearwater, Florida 33759
Office (727) 799-1688
Fax (727) 799-1670
jcorsmeier@jac-law.com
http://www.jac-law.com

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Filed under Attorney discipline, Attorney Ethics, Attorney misrepresentation, deceit, dishonesty, fraud, joe corsmeier, Joseph Corsmeier, Lawyer discipline, Lawyer ethics, Lawyer Ethics and Professionalism, Lawyer false statements, Lawyer lack of diligence, Lawyer misrepresentation, Lawyer misrepresentations to law firm re billings, Lawyer Professionalism, Lawyer sanctions

New Jersey Supreme Court suspends lawyer for one year as reciprocal discipline for New York litigation misconduct

Hello everyone and welcome to this Ethics Alert which will discuss the recent New Jersey Supreme Court order/opinion which imposed a one year reciprocal suspension on a lawyer as reciprocal discipline for misconduct in a New York litigation matter. The disciplinary opinion is In the Matter of Gregory N. Filosa, Case No. 14-146 (NJ SC 11/6/14) and is online here: http://www.judiciary.state.nj.us/drb/decisions/Filosa_14_108.pdf

According to the opinion and disciplinary report, the misconduct involved the lawyer’s handling of an employment discrimination matter against the client’s former employer. The lawyer was an associate at his law firm and was supervised by firm partners. The employer requested information about the client’s efforts to mitigate damages through, inter alia, new employment.

The firm retained an economist as an expert to assess damages. The economist prepared an analysis based on the assumption that the client would be unemployed through the end of 2010. Before service of the expert report, the client accepted a job with Kraft that paid her more than she made at the former employer. She advised the associate about her employment, who told his supervisor. The law firm then sent the inaccurate expert report to opposing counsel and demanded a $350,000.00 settlement. The client was later deposed and lied about accepting the job at Kraft. The lawyer was aware that the testimony was false but did not correct it either at the deposition or later.

During the pendency of the case, the former employer learned about the client’s new position at Kraft and moved for sanctions and the dismissal of the case. The supervising attorney and another partner from the law firm were present at the May 2011 oral argument on the motion; however, the lawyer was not present.

After the hearing, the trial judge imposed a $2,500.00 sanction against the client and a $15,000.00 sanction against the law firm due to the “false testimony by (the client) at her deposition” as well as the lawyer (and his supervisor’s) efforts “to conceal (the client’s) new employment and to leverage a false expert report in order to extract a favorable settlement.” The judge did not to dismiss the case against (the employer) at the time. The lawyer resigned from the law firm on May 31, 2011.

The New York disciplinary board found that the lawyer had engaged in misconduct by “misleading (the former employer) about (client)’s employment prospects through the inaccurate expert report; by failing to correct (the client)’s deposition testimony; by failing to produce documents that would have revealed (the client)’s two job offers; and by trying to settle the case quickly ‘before the defendants caught on to the truth’”. He received a one (1) year suspension in New York in 2013. The New Jersey Supreme Court then imposed a one (1) year suspension nunc pro tunc as reciprocal discipline.

Bottom line: This lawyer was found to have concealed a client’s new employment, leveraged a false expert report in order to extract a favorable settlement, allowed the client to lie during a deposition, and failed to correct the client’s false testimony. Some other states might have imposed a longer suspension or disbarred the lawyer.

Let’s be careful out there.

Disclaimer: this e-mail does not contain any legal advice and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire
Law Office of Joseph A. Corsmeier, P.A.
2454 McMullen Booth Road, Suite 431
Clearwater, Florida 33759
Office (727) 799-1688
Fax (727) 799-1670
jcorsmeier@jac-law.com
http://www.jac-law.com

Leave a comment

Filed under Attorney discipline, Attorney Ethics, Attorney misrepresentation, deceit, dishonesty, joe corsmeier, Joseph Corsmeier, Lawyer conduct prejudicial to the administration of justice, Lawyer ethics, Lawyer Ethics and Professionalism, Lawyer misrepresentation, Lawyer Professionalism, Lawyer sanctions