Category Archives: lawyer felony suspension

Ohio lawyer who stole $128,674.30 from mentally ill client, including charging hourly rate for mowing her lawn, indefinitely suspended

Hello everyone and welcome to this Ethics Alert, which will discuss the recent Ohio Supreme Court opinion indefinitely suspending an Ohio lawyer who stole over $128,674.30 from mentally ill client, including charging hourly rate for mowing her lawn, helping find an apartment, and shopping for her.  The case is Disciplinary Counsel v. Buttars, Slip Opinion No. 2020-Ohio-1511.  The April 21, 2020 opinion is here:  http://www.supremecourt.ohio.gov/rod/docs/pdf/0/2020/2020-Ohio-1511.pdf

According to the opinion, the lawyer first began working for the client, who suffered from mental illness, alcoholism, and depression, in 2015. His law firm agreed to represent the client for $20 per month but the lawyer entered into a separate written fee agreement to represent her “in any capacity” at an hourly billable rate of $250.00.  The client told the lawyer that she could not pay him immediately; however, she was going to receive “a substantial inheritance” from her mother’s estate when the mother passed away.

After the client’s mother died in 2015, the lawyer, who had his own law firm at that time, assisted with the administration of the client’s mother’s estate and also performed nonlegal, personal jobs for her, including assisting her with a new apartment, mowing her lawn, and shopping for her. He charged either his hourly rate of $250.00 or the paralegal rate of $150.00 per hour.

The lawyer transferred $10,000.00 from one of the client’s bank accounts in May 2016 for personal and business expenses.  He told her that he made a mistake and advised her to sign a promissory note saying that it was a loan; however, he did not advise her that she could seek independent counsel on the issue.

The lawyer was convicted of fourth-degree felony theft from the client in May 2019 and was temporarily suspended based upon that conviction.  A disciplinary complaint was subsequently filed against the lawyer for violating rules prohibiting collecting illegal or clearly excessive fees; entering into a business transaction with a client without complying with the requirements of the disciplinary rules; and fraud.

According to the opinion, “(t)he parties stipulated—and the board agreed—that although (the lawyer) transferred $147,710.85 from E.H.’s accounts, he and his law firm had earned only $19,036.55, leaving $128,674.30 as the total amount that he had either stolen or overcharged. (The lawyer) repaid to E.H. $12,500 in January 2017 and $50,000 during his criminal proceeding. Therefore, at the time of his disciplinary hearing, he owed E.H. restitution in the amount of $66,174.30, which included the $29,450 that he had been ordered to make as part of his criminal sentence. Because the criminal case did not account for the amounts that (the lawyer) had overcharged E.H., the restitution amount in this disciplinary matter is substantially greater than that ordered in (the lawyer’s) criminal case.”

The lawyer paid $12,500.00 back in January 2017 and $50,000.00 during the criminal proceedings, which left a balance of more than $66,000.00 owed, including $29,450.00 that the lawyer had been ordered to make as part of his criminal sentence.  The opinion found aggravating factors of acting with a dishonest and selfish motive, engaging in a pattern of misconduct, and committing multiple offenses while representing a “particularly vulnerable client”.

According to the opinion, “(t)he presumptive sanction for an attorney’s misappropriation of client funds is disbarment, but that presumption may be tempered with sufficient evidence of mitigating or extenuating circumstances…(t)he board accepted the parties’ proposed sanction and recommends that we indefinitely suspend (the lawyer)—rather than disbar him—based on his acceptance of responsibility, sincere remorse, and commitment to make things right with E.H. To support its recommendation, the board cited two cases in which we indefinitely suspended attorneys who similarly misappropriated funds while serving in positions of trust.”

The opinion imposed an indefinite suspension, with no credit for the time that he was suspended under the interim felony suspension and his reinstatement was conditioned upon proof of the lawyer’s payment of the remaining $66,000.00 owed his client.

Bottom line:  This lawyer admitted stealing or “overcharging” $128,674.30 from the client; however, he was indefinitely suspended and not disbarred.  This most likely would not happened in Florida (or most other jurisdictions).

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.

2999 Alt. 19, Suite A

Palm Harbor, Florida

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

Please note:  My office has moved and the new office address is 2999 Alt. 19, Palm Harbor, FL 34683.  All other contact information remains the same.

Joseph Corsmeier

about.me/corsmeierethicsblogs

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Florida lawyer accused of “planning” Allied Veterans scam is reinstated nunc pro tunc after criminal charges were reversed

Hello everyone and welcome to this Ethics Alert which will discuss the recent Order of the Florida Supreme Court reinstating the license of a lawyer who had been charged with felony crimes for allegedly planning Allied Veterans scam and whose conviction was reversed.  The case is The Florida Bar v. Kelly Bernard Mathis, Case No.: SC13-2031 (Supreme Court of Florida, July 17, 2017) and the SC Order is here:  https://efactssc-public.flcourts.org/casedocuments/2013/2031/2013-2031_disposition_138842.pdf

As some of you may recall, an alleged financial scam involving an entity called Allied Veterans, based in St. Augustine, was in the media extensively a number of years ago.  The alleged scam involved gambling and “internet cafes”.  The lawyer had advised Allied Veterans that the internet cafes were legal and, after a law enforcement investigation, he was charged with planning the scam and with multiple felonies.  In 2013, Attorney General Pam Bondi said that the lawyer was the “mastermind” behind the alleged $300 million racketeering and money laundering scheme with internet cafes where people were actually illegally gambling.

Although 57 people were arrested, the lawyer was the only defendant who went to trial.  He argued that he was giving legal advice to a client and many lawyers were concerned about what that might mean for the potential criminal liability of attorneys who advise clients on a future course of conduct.  The former presidents of the nonprofit pleaded no contest and the former Fraternal Order of Police president and vice president pleaded guilty and faced no prison time.

The criminal prosecutors argued that, although Allied Veterans claimed that it was a nonprofit organization created to help veterans, it had only given about two percent of its profits to charitable causes.  The prosecutors also argued that the lawyer’s law firm had billed the nonprofit about $6 million for his legal services, although his lawyers stated the amount was most likely less than that and that he only billed for actual work his firm had performed.

During the trial, prosecutors presented testimony from witnesses who said that they had purchased hundreds of hours of internet time but never used it because they actually came to gamble. The lawyers wanted to argue in the lawyer’s defense that the lawyer had properly advised Allied Veterans that it was his opinion that offering a sweepstakes game that was legal under Florida law, which permits sweepstakes if they are used to bring a customer into a business that sells a legal product, such as McDonald’s sweepstakes.  The judge rejected their request to make that argument.

After his conviction on 103 criminal counts, the lawyer was sentenced to six years in prison.  He appealed and the Florida Fifth District Court of Appeals reversed the conviction, finding that the trial judge improperly prohibited his lawyers from arguing that the internet cafes were legal and not gambling.  The Attorney General’s office decided not to pursue charges against the lawyer after the conviction was reversed.

In disciplinary matter, The Florida Bar did not oppose the lawyer’s reinstatement and Fourth Judicial Circuit Chief Judge Mark Mahon issued a report in March 2017 recommending that the Florida Supreme Court immediately reinstate the lawyer.  In its July 17, 2017 Order, the Florida Supreme Court reinstated the lawyer nunc pro tunc to the date of his felony suspension in 2013.

Bottom line:  This lawyer was charged with multiple felonies and chose to go to trial instead of accepting a plea bargain which would not have resulted in prison time; however, the conviction would most likely have resulted in his disbarment.  After his trial in 2013, the lawyer was convicted and sentenced to 6 years in prison.  He was also automatically suspended because of the felony conviction.  Pursuant to the Florida Supreme Court’s July 17, 2017 Order, the lawyer was reinstated to practice nunc pro tunc to November 28, 2013, the date of his felony suspension.  The lawyer was ultimately suspended and unable to practice for over 3 ½ years for a conviction that was later reversed.

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.

29605 U.S. Highway 19, N., Suite 150

Clearwater, Florida 33761

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

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Filed under .S. Supreme Court, and reinstatement, Attorney Ethics, Florida Bar, Florida Lawyer Ethics and Professionalism, Florida Supreme Court, joe corsmeier, Joseph Corsmeier, Lawyer criminal conduct, Lawyer discipline for criminalconviction, Lawyer ethics, Lawyer Ethics and Professionalism, lawyer felony suspension, lawyer nunc pro tunc reinstatement, lawyer reinstatement after criminal conviction reversed