Title: Office of Lawyer Regulation v. John F. Koenig

State: wisconsin

Issuer: Wisconsin Supreme Court

Document:

2015 WI 16 
 
SUPREME COURT OF WISCONSIN 
 
 
 
 
 
CASE NO.: 
2014AP1523-D    
COMPLETE TITLE: 
Office of Lawyer Regulation, 
          Complainant, 
     v. 
John F. Koenig, 
          Respondent. 
 
 
 
 
 
DISCIPLINARY PROCEEDINGS AGAINST KOENIG 
 
 
OPINION FILED: 
February 17, 2015 
SUBMITTED ON BRIEFS: 
        
ORAL ARGUMENT: 
      
 
 
SOURCE OF APPEAL: 
 
 
COURT: 
        
 
COUNTY: 
      
 
JUDGE: 
      
 
 
 
JUSTICES: 
 
 
CONCURRED: 
        
 
DISSENTED: 
      
 
NOT PARTICIPATING:         
 
 
 
ATTORNEYS: 
 
 
 
 
 
2015 WI 16
NOTICE 
This opinion is subject to further 
editing and modification.  The final 
version will appear in the bound 
volume of the official reports.   
No.   2014AP1523-D 
 
 
STATE OF WISCONSIN  
 
 
   : 
IN SUPREME COURT 
 
 
In the Matter of Disciplinary Proceedings 
Against John F. Koenig, Attorney at Law: 
 
Office of Lawyer Regulation, 
 
          Complainant, 
 
     v. 
 
John F. Koenig, 
 
          Respondent. 
 
FILED 
 
FEB 17, 2015 
 
Diane M. Fremgen 
Clerk of Supreme Court 
 
 
 
 
ATTORNEY 
disciplinary 
proceeding.  Attorney's 
license 
suspended.   
 
¶1 
PER CURIAM.   We review a report and recommendation of 
referee James C. Boll, approving a stipulation filed by the 
Office of Lawyer Regulation (OLR) and Attorney John F. Koenig.  
In the stipulation, Attorney Koenig admitted one count of 
misconduct as alleged in the complaint filed by the OLR.  The 
parties jointly recommended that, as a sanction for his 
misconduct, Attorney Koenig's license to practice law in 
Wisconsin be suspended for two years and that he also be 
No. 
2014AP1523-D   
 
2 
 
required to make restitution to his former law firm in the 
amount of $12,020.  Because Attorney Koenig entered into a 
comprehensive stipulation, the OLR recommends that no costs be 
assessed against him.  
¶2 
Upon careful review of the matter, we agree with the 
referee's findings of fact and conclusions of law.  We conclude 
that a two-year suspension of Attorney Koenig's license to 
practice law is an appropriate sanction for his misconduct.  We 
further agree that Attorney Koenig should make restitution to 
his former law firm in the amount of $12,020.  Finally, we agree 
that, under the specific facts of this case, it is appropriate 
not to assess any costs against Attorney Koenig. 
¶3 
Attorney Koenig was admitted to practice law in 
Wisconsin in 1997 and practices in Milton.  He was previously 
employed with the law firm of Kohls and Associates LLC.  The 
firm practices primarily in estate planning and frequently bills 
on a flat fee basis.  Clients are billed after the work is 
completed.   
¶4 
Attorney Koenig's employment with the firm ended on 
August 31, 2013, after the firm discovered that Attorney Koenig 
had been embezzling funds from it.  
¶5 
Attorney Koenig quoted and collected fees from clients 
that were larger than what he reported and turned in to the 
firm.  He would have clients pay him directly for some or all of 
the work he performed.  He either did not report the money to 
the firm or would tell the firm that he charged the client a 
lesser amount.  In some cases, Attorney Koenig manually created 
No. 
2014AP1523-D   
 
3 
 
an invoice for the client that was for a larger amount than that 
stated by the firm in its accounting system.  He would keep the 
difference between the two invoice amounts.   
¶6 
Attorney Koenig accepted payments from the firm's 
clients without the firm's knowledge and then cashed those 
checks at Summit Credit Union where he maintained an account.  
He also received money for legal work that he performed for 
acquaintances who paid him directly.  Attorney Koenig normally 
performed such work during regular law firm office hours and he 
used the firm's equipment, supplies, and staff.  Although a 
Kohls firm attorney would have been permitted to perform work 
for family or perhaps close friends at no charge, it was 
understood by the firm's employees that any legal work performed 
by an employee should be reported to the firm.  It was also 
understood by the firm's employees that all billings for legal 
work should be reported to the firm. 
¶7 
Attorney Koenig received other funds for honorariums 
and reimbursements for presenting continuing legal education 
programs or public workshops that he also did not turn over to 
the firm.   
¶8 
After the firm learned of Attorney Koenig's actions, 
Attorney Koenig requested Summit Credit Union to provide all 
checks that were presented but not deposited into his account at 
the credit union.  He received that information and provided it 
to the firm and to the OLR.  
¶9 
Attorney Koenig admitted accepting a total of $39,920 
in payments for legal work from firm clients or other parties 
No. 
2014AP1523-D   
 
4 
 
using firm resources in 37 separate instances without notifying 
the firm of such payments.  As an offset towards the money he 
improperly took, Attorney Koenig forfeited his final paycheck 
from the firm in the gross amount of $27,900.   
¶10 On July 7, 2014, the OLR filed a complaint against 
Attorney Koenig alleging the following count of misconduct: 
[Count One]  By receiving at least $39,920 in 
legal fees for legal work he performed for clients of 
his law firm employer or for legal work he performed 
for other third parties using the firm's time, 
equipment, supplies, and staff without reporting such 
fees to the firm, and by falsifying billing statements 
that he provided to the firm in order to cover up his 
embezzlement, Koenig violated [Supreme Court Rule 
(SCR)] 20:8.4(c) and SCR 20:8.4(f).1 
¶11 The complaint sought a two-year suspension of Attorney 
Koenig's license to practice law in Wisconsin.  Attorney Koenig 
filed an answer on July 29, 2014, admitting all allegations in 
the complaint as true.  Referee Boll was appointed on 
September 4, 2014.   
¶12 On September 30, 2014, the parties entered into a 
stipulation 
whereby 
Attorney 
Koenig 
agreed 
to 
the 
OLR's 
recommendation for a two-year suspension of his license.  The 
stipulation averred that Attorney Koenig fully understood the 
misconduct allegations and his right to contest the matter; he 
fully understood the ramifications of his entry into the 
                                                 
1 SCR 20:8.4(c) and (f) provide, respectively, that it is 
professional misconduct for a lawyer to "engage in conduct 
involving dishonesty, fraud, deceit or misrepresentation" or to 
"violate a statute, supreme court rule, supreme court order or 
supreme court decision regulating the conduct of lawyers." 
No. 
2014AP1523-D   
 
5 
 
stipulation; he fully understood his right to consult with 
counsel; and his entry into the stipulation was made knowingly 
and voluntarily and was not the result of coercion nor plea-
bargaining.   
¶13 On October 30, 2014, the referee issued his final 
decision.  Based on the stipulation, the referee found by clear, 
satisfactory, and convincing evidence that Attorney Koenig 
violated the supreme court rules as alleged in Count One of the 
OLR's complaint.  The referee also recommended that Attorney 
Koenig's license to practice law in Wisconsin be suspended for 
two years and that he be required to make restitution to his 
former law firm in the amount of $12,020.  
¶14 On November 19, 2014, the OLR filed a statement of 
costs showing costs in the amount of $921.63.  The OLR takes the 
position 
that, 
because 
Attorney 
Koenig 
entered 
into 
a 
comprehensive stipulation, no costs should be assessed against 
him.   
¶15 This court will adopt a referee's findings of fact 
unless they are clearly erroneous.  Conclusions of law are 
reviewed de novo.  See In re Disciplinary Proceedings Against 
Eisenberg, 2004 WI 14, ¶5, 269 Wis. 2d 43, 675 N.W.2d 747.  The 
court may impose whatever sanction it sees fit, regardless of 
the 
referee's 
recommendation. 
 
See 
In 
re 
Disciplinary 
Proceedings Against Widule, 2003 WI 34, ¶44, 261 Wis. 2d 45, 
660 N.W.2d 686.   
¶16 We 
adopt 
the 
referee's 
findings 
of 
fact 
and 
conclusions of law that Attorney Koenig violated the supreme 
No. 
2014AP1523-D   
 
6 
 
court rules as alleged in Count One of the OLR's complaint.  We 
also agree with the referee that a two-year suspension of 
Attorney Koenig's license is an appropriate sanction for the 
misconduct at issue here.  A two-year suspension is consistent 
with the level of discipline imposed in somewhat similar cases.  
See, e.g., In re Disciplinary Proceedings Against Cotter, 
171 Wis. 2d 373, 491 N.W.2d 475 (1992).   
¶17 We also agree with the referee that Attorney Koenig 
should be required to make restitution to his former law firm in 
the amount of $12,020.  We further agree that, based on the 
particular 
circumstances 
present 
in 
this 
matter, 
it 
is 
appropriate not to assess any costs against Attorney Koenig. 
¶18 IT IS ORDERED that the license of John F. Koenig to 
practice law in Wisconsin is suspended for a period of two 
years, effective March 19, 2015. 
¶19 IT IS FURTHER ORDERED that within 60 days of the date 
of this order, John F. Koenig shall make restitution to the law 
firm of Kohls and Associates LLC in the amount of $12,020. 
¶20 IT IS FURTHER ORDERED that compliance with all 
conditions of this order is required for reinstatement.  See 
SCR 22.29(4m)(c). 
¶21 IT IS FURTHER ORDERED that John F. Koenig shall comply 
with the provisions of SCR 22.26 concerning the duties of an 
attorney whose license to practice law has been suspended.  
 
No. 
2014AP1523-D   
 
 
 
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