Title: Board of Attorneys Professional Responsibility v. John V. Asher

State: wisconsin

Issuer: Wisconsin Supreme Court

Document:

2001 WI 12 
 
SUPREME COURT OF WISCONSIN 
 
 
Case No.: 
00-2661-D 
 
 
Complete Title 
of Case: 
 
In the Matter of Disciplinary Proceedings 
Against John V. Asher: 
 
Board of Attorneys Professional Responsibility, 
n/k/a Office of Lawyer Regulation,  
 
Complainant, 
 
v. 
John V. Asher,  
 
Respondent.  
 
 
DISCIPLINARY PROCEEDINGS AGAINST ASHER 
 
 
Opinion Filed: 
February 27, 2001 
Submitted on Briefs: 
      
Oral Argument: 
      
 
 
Source of APPEAL 
 
COURT: 
      
 
COUNTY: 
      
 
JUDGE: 
      
 
 
JUSTICES: 
 
Concurred: 
      
 
Dissented: 
      
 
Not Participating:       
 
 
ATTORNEYS: 
      
 
2001 WI 12 
 
 
NOTICE 
This opinion is subject to further editing and 
modification.  The final version will appear in 
the bound volume of the official reports. 
 
 
No. 00-2661-D 
 
STATE OF WISCONSIN               :        
        
 
 
 
 
IN SUPREME COURT 
 
 
In the Matter of Disciplinary Proceedings 
Against John V. Asher: 
 
Board of Attorneys Professional  
Responsibility, n/k/a Office of Lawyer  
Regulation,  
 
          Complainant, 
 
     v. 
 
John V. Asher,  
 
          Respondent.  
 
FILED 
 
FEB 27, 2001 
 
Cornelia G. Clark 
Clerk of Supreme Court 
Madison, WI 
 
 
 
ATTORNEY 
disciplinary 
proceeding.  Attorney's 
license 
revoked.   
¶1 
PER 
CURIAM   We 
review 
the 
findings 
of 
fact, 
conclusions of law, and recommendation for discipline of the 
No. 
00-2661-D 
 
2 
referee, Charles J. Herro1 pursuant to SCR 21.09(5).2  Attorney 
Asher was found to have engaged in numerous instances of 
unprofessional conduct in the course of his practice of law in 
violation of the rules of professional conduct.  The referee has 
recommended that Attorney Asher's license to practice law be 
revoked, that restitution be paid to several clients, and that 
the costs of these proceedings be paid. 
¶2 
We 
approve 
the 
findings, 
conclusions 
and 
recommendations 
of 
the 
referee 
and 
determine 
that 
the 
                     
1  Effective 
October 
1, 
2000, 
Wisconsin's 
attorney 
disciplinary process underwent a substantial restructuring.  The 
name of the body responsible for investigating and prosecuting 
cases involving attorney misconduct was changed from the Board 
of Attorneys Professional Responsibility (Board) to the Office 
of Lawyer Regulation, and the Supreme Court rules applicable to 
the lawyer regulation system were also revised.  Since the 
conduct underlying this case arose prior to October 1, 2000, all 
references will be to the Board and to the Supreme Court rules 
in effect prior to October 1, 2000.   
2  Former SCR 21.09(5) provided, in pertinent part: 
(5)  The referee shall, within 30 days of the conclusion of 
the hearing, file with the clerk of the supreme court a report 
stating his or her findings and disposition of the complaint or 
petition by recommendation of dismissal or imposition of 
discipline as provided in SCR 21.06 or suspension or conditions 
upon the continued practice of law for medical incapacity.  The 
board or the attorney may file an appeal of the referee's report 
with the supreme court within 20 days of the filing of the 
report.  If no appeal is timely filed, the supreme court shall 
review the referee's report and determine appropriate discipline 
in cases of misconduct and appropriate action in cases of 
medical incapacity and may, on its own motion, within 30 days of 
the expiration of the time for appeal, order the parties to file 
briefs in the matter or extend the time in which it may order 
briefs.  (Emphasis added.)   
  
  
No. 
00-2661-D 
 
3 
seriousness 
of 
Attorney 
Asher's 
misconduct 
warrants 
the 
imposition of these sanctions. 
¶3 
Attorney Asher was admitted to the practice of law in 
Wisconsin in 1984 and had his office in Dousman.  He has no 
prior attorney disciplinary history.  
¶4 
On October 2, 2000, the Board issued a complaint 
against Attorney Asher ordering him to answer within 20 days.  
He responded that he would not be filing any formal response and 
would not participate in the disciplinary proceedings.  On 
October 24, 2000, the Board moved the referee for an order 
determining that he was in default for failing to answer the 
complaint and for an order requesting that the referee accept as 
true and correct and uncontested the allegations found within 
the Board's complaint.  The referee conducted a telephone 
hearing on the motion on November 14, 2000, and granted the 
motion on November 20, 2000.  The referee then issued his 
findings, conclusions and recommendation for discipline on 
November 22, 2000.3 
¶5 
A general description of the facts and circumstances 
leading to these disciplinary proceedings is necessary.  In 
                     
3  On September 2, 1999, prior to the receipt by the Board 
of many of the client grievances that formed the basis for this 
proceeding, Attorney Asher submitted his resignation from the 
State Bar of Wisconsin to this court which it accepted on 
September 13, 1999.  However, the Board subsequently moved to 
vacate the order because it had commenced its investigation into 
these matters.  This court determined on October 27, 1999, to 
hold the motion in abeyance pending notification that the Board 
had completed its investigation. 
No. 
00-2661-D 
 
4 
1984, Attorney Asher incorporated a law firm which he named the 
Christian Law Center ("CLC").  This was solely his firm, 
although he may have employed one or more associates or others 
at various times.  In general, the CLC advertised extensively 
and handled a high volume of relatively low-asset personal 
bankruptcies.  At the same time, Attorney Asher was also the 
minister of a church he had founded and also operated other 
business enterprises.   
¶6 
During the late summer of 1999, it was widely reported 
in the media that Attorney Asher had extremely serious problems, 
both financially and regarding appropriate legal representation 
of his clients.  Around that time, he twice relocated his 
offices, and notified his clients by letter dated August 27, 
1999, that he was forced to close the CLC due to financial 
problems.  Up to that time, however, he continued to accept 
retainer and filing fee payments from clients for work to be 
performed, much of which went unperformed.  
¶7 
From that time on, until mid-2000, the Board received 
numerous grievances from clients alleging that they had paid 
funds to Attorney Asher for bankruptcy filing fees and retainers 
in cases which ultimately were never filed by him.  The Board's 
complaint alleged 233 violations of the rules of professional 
conduct relating to 58 clients.   
¶8 
The first set of these allegations, 51 counts each, 
involve simultaneous violations of SCR 20:1.15(a),4 failure to 
                     
4  SCR 20:1.15(a) provides: 
No. 
00-2661-D 
 
5 
deposit client funds into a trust account and, SCR 20:8.4(c),5 
engaging in conduct involving dishonesty, fraud, deceit or 
misrepresentation arising out of converting funds of the client 
to the attorney's own use.  Attorney Asher's trust account, 
entitled "Christian Law Center of WI, S.C., IOLTA," was 
                                                                  
(a)  A lawyer shall hold in trust, separate from the 
lawyer's own property, that property of clients and third 
persons that is in the lawyer's possession in connection with a 
representation or when acting in a fiduciary capacity.  Funds 
held in connection with a representation or in a fiduciary 
capacity include funds held as trustee, agent, guardian, 
personal representative of an estate, or otherwise.  All funds 
of clients and third persons paid to a lawyer or law firm shall 
be deposited in one or more identifiable trust accounts as 
provided in paragraph (c).  The trust account shall be 
maintained in a bank, savings bank, trust company, credit union, 
savings and loan association or other investment institution 
authorized to do business and located in Wisconsin.  The trust 
account shall be clearly designated as "Client's Account" or 
"Trust Account" or words of similar import.  No funds belonging 
to the lawyer or law firm, except funds reasonably sufficient to 
pay or avoid imposition of account service charges, may be 
deposited in such an account.  Unless the client otherwise 
directs in writing, securities in bearer form shall be kept by 
the attorney in a safe deposit box in a bank, savings bank, 
trust company, credit union, savings and loan association or 
other investment institution authorized to do business and 
located in Wisconsin.  The safe deposit box shall be clearly 
designated as "Client's Account" or "Trust Account" or words of 
similar import.  Other property of a client or third person 
shall be identified as such and appropriately safeguarded.  If a 
lawyer also licensed in another state is entrusted with funds or 
property in connection with an out-of-state representation, this 
provision shall not supersede the trust account rules of the 
other state. 
 
5  SCR 20:8.4(c) provides: 
It is professional misconduct for a lawyer to:  
 
(c)  engage in conduct involving dishonesty, fraud, deceit 
or misrepresentation;   
No. 
00-2661-D 
 
6 
essentially inactive throughout its existence in 1998-99.  His 
account at another bank, entitled "Christian Law Center of 
Wisconsin, S.C., Filing Fee Account," was apparently opened in 
early 1998.  Bank records show this second account to be active 
during its six-month existence.  For the first two months it 
existed, the second account was used for the deposit and payment 
of bankruptcy filing fees but was not used exclusively for this 
purpose.  A number of checks from this account were made payable 
to Attorney Asher and his employees.  Seven checks written in 
February and March of 1999 were returned for reason of 
insufficient funds in the account.  Thereafter, checks totaling 
in the tens of thousands of dollars were written to employees 
and to pay office expenses.  After early April of 1998, none of 
the checks drawn on the filing fee account were payable to the 
United 
States 
Bankruptcy 
Clerk. 
 
The 
account 
was 
again 
occasionally overdrawn and account activity began to taper off. 
 The filing fee account was closed in July of 1998.  Attorney 
Asher declared on August 27, 1999, that he did not have on 
deposit, in trust, any filing fees paid to him by clients.  
After that date, he never reimbursed any client for filing fees 
he received but had not paid to the bankruptcy clerk. 
¶9 
We 
find 
that 
Attorney 
Asher 
has 
committed 
51 
violations of SCR 20:1.15(a) and 51 violations of SCR 20:8.4(c). 
 We further adopt the referee's finding that the amount 
converted by Attorney Asher, based on the statements and proofs 
of payment provided by only those clients who filed grievances 
against him, was $8900. 
No. 
00-2661-D 
 
7 
¶10 The second set of allegations concern 53 violations of 
SCR 20:1.16(d),6 unearned fees that attorney failed to return to 
clients.  These violations arise out of the above-described 
circumstances in which clients paid retainers to Attorney Asher 
who did not then file bankruptcies on their behalf.  Although he 
or his staff may have spent some time with some clients or even 
partially completed documents, the clients involved received no 
value from Attorney Asher or the bankruptcy was never actually 
filed by him.   
¶11 We find that Attorney Asher has therefore committed 53 
violations of SCR 20:1.16(d).  We further adopt the referee's 
finding that these unearned fees were $33,811.50.   
¶12 The third set of allegations concern 18 violations of 
SCR 20:1.3,7 failing to act with reasonable diligence and 
promptness in representing a client.  These violations concern 
the above-described instances where clients had paid the 
attorney fees in full but Attorney Asher did not timely file the 
                     
6  SCR 20:1.16(d) provides: 
(d)  Upon termination of representation, a lawyer shall 
take steps to the extent reasonably practicable to protect a 
client's interests, such as giving reasonable notice to the 
client, 
allowing 
time 
for 
employment 
of 
other 
counsel, 
surrendering papers and property to which the client is entitled 
and refunding any advance payment of fee that has not been 
earned.  The lawyer may retain papers relating to the client to 
the extent permitted by other law.  
 
7  SCR 20:1.3 provides:  Diligence  
 
A lawyer shall act with reasonable diligence and promptness 
in representing a client.  
 
No. 
00-2661-D 
 
8 
bankruptcy 
action. 
 
The 
Board 
has 
not 
alleged 
possible 
violations of this nature when the fees were paid very shortly 
before the closing of Attorney Asher's law office. 
¶13 We 
find 
that 
Attorney 
Asher 
has 
committed 
18 
violations of SCR 20:1.3.   
¶14 The fourth set of allegations concern three violations 
of SCR 20:1.4(a),8 failure to keep a client reasonably informed 
about the status of a matter and to comply with a client's 
reasonable requests for information.  These instances concern 
those clients who complained that Attorney Asher's staff 
repeatedly put them off when they called to make inquiries or 
simply received no response whatsoever to their telephone 
messages.  
¶15 We find that Attorney Asher has committed three 
violations of SCR 20:1.4(a). 
¶16 The fifth set of allegations concern one violation of 
SCR 20:1.16(a)(3),9 representing a client after discharge.  This 
                     
8  SCR 20:1.4(a) provides: 
(a)  A lawyer shall keep a client reasonably informed about 
the status of a matter and promptly comply with reasonable 
requests for information.  
 
9  SCR 20:1.16(a)(3) provides: 
(a)  Except as stated in paragraph (c), a lawyer shall not 
represent a client or, where representation has commenced, shall 
withdraw from the representation of a client if:  
 
(3)  the lawyer is discharged.  
 
No. 
00-2661-D 
 
9 
concerns the one instance in which Attorney Asher filed a 
bankruptcy action after he was discharged by his client. 
¶17 We 
find 
that 
Attorney 
Asher 
has 
committed 
one 
violation of SCR 20:1.16(a)(3). 
¶18 The sixth set of allegations concern 56 violations of 
SCR 
22.07(3),10 
failure 
to 
cooperate 
with 
the 
Board's 
investigation.  Of the 58 client matters referenced within its 
complaint 
Attorney 
Asher 
cooperated 
with 
only 
one 
Board 
investigation.  In another matter, an inquiry was sent to him 
but the Board did not request a response.  As to the remaining 
56 client matters in which the Board conducted an investigation, 
Attorney Asher made no response to the initial inquiries from 
the Board.  Some inquiries did not generate a response 
whatsoever.  Other inquiries were returned to the Board marked 
"Refused – Return to Sender."  Finally, some inquiries were 
returned by the United States Post Office with the indication 
that Attorney Asher had moved and left no forwarding address. 
¶19 We 
find 
that 
Attorney 
Asher 
has 
committed 
56 
violations of SCR 22.07(3).  
                     
10  Former SCR 22.07(3) provided: 
(3)  The 
administrator 
or 
committee 
may 
compel 
the 
respondent to answer questions, furnish documents and present any 
information deemed relevant to the investigation.  Failure of the 
respondent to answer questions, furnish documents or present 
relevant information is misconduct.  The administrator or a 
committee may compel any other person to produce pertinent books, 
papers and documents under SCR 22.22.  
 
No. 
00-2661-D 
 
10
¶20 We further adopt the referee's recommendation for 
discipline which, in turn, adopted the Board's request in its 
complaint.  The referee's overall recommendation is appropriate 
discipline for the professional misconduct demonstrated in this 
case.  Attorney Asher's misconduct with his clients and with 
respect to his Board obligations were serious, multiple failings 
warranting severe sanction.   
¶21 Accordingly, it is appropriate that: (1) the license 
of Attorney Asher to practice law in this state be revoked; 
(2) that within 60 days Attorney Asher make restitution for the 
$8900 that he converted and for the $33,811.50 unearned fees he 
failed to return to clients, as generally described above and as 
more specifically alleged in the individual client matters 
described in Board's complaint; and, (3) Attorney Asher pay the 
 $1361.25 costs of these proceedings. 
¶22 IT IS ORDERED that the September 13, 1999, order of 
this court accepting the resignation of Attorney John V. Asher 
from the State Bar of Wisconsin is vacated. 
¶23 IT IS FURTHER ORDERED that the license of Attorney 
John V. Asher to practice law in the state of Wisconsin be 
revoked, effective the date of this order. 
¶24 IT IS FURTHER ORDERED that John V. Asher comply with 
the provisions of SCR 22.26 concerning the duties of an attorney 
whose license to practice law has been revoked. 
¶25 IT IS FURTHER ORDERED that within 60 days of the date 
of this order John V. Asher shall pay to his former clients, 
pursuant to paragraphs 5-12, 15-40, 43-60, 63-114, and 119-122 
No. 
00-2661-D 
 
11
of the Board's complaint, $8900 and $33,811.50 with interest at 
5% from July 1, 2000. 
¶26 IT IS FURTHER ORDERED that within 60 days of the date 
of this order John V. Asher shall pay $1361.25 to the Office of 
Lawyer Regulation representing the costs of this proceeding. 
 
 
1