Opinion ID: 1939379
Heading Depth: 1
Heading Rank: 5

Heading: Gary Murray Matter

Text: Gary Murray of Philadelphia was referred to Respondent by his cousin, a minister. Murray's mother had died recently. Respondent informed Murray, his brothers and sister that he was a corporate attorney and would assist them in processing the necessary papers for their late mother's estate. On Respondent's office desk was a sign identifying him as an attorney. Murray, did not know that Respondent was in the insurance business. At that meeting, Respondent suggested they invest their inheritance in oil and in a medical service firm. In May 1981, Murray gave Respondent $6,000 in cash to invest in a medical service company. Respondent, accompanied by the company president and vice-president, received this money in Murray's home. Respondent gave the cash to the company president. Murray was to receive one-third of one percent interest in that company. He never received any company stock. In December 1981, Respondent received $4,000 from him and in March 1982, $2,000, for a total of $12,000. Respondent gave Murray a promissory note dated March 9, 1982 whereby Respondent agreed to pay $6,000 before May 30, 1982. This promissory note was on Respondent's legal stationery. Murray gave Respondent the money to invest because he felt that Respondent had special expertise in that area. He relied on his statements because Respondent was an attorney. He testified that he would not have invested with Respondent if Respondent had not been an attorney. On July 30, 1982 Murray received a check from Respondent for $25,000 which was designated a loan repayment. However, this check was not honored by the bank. When Respondent gave this check to Murray, Respondent stated that this was the first return that Murray would receive and was the lowest that he could expect to receive. Murray thereafter was not able to contact Respondent. According to Respondent, he informed Murray and his siblings that he was not licensed to practice law in Pennsylvania. Their mother's estate consisted of a house and insurance proceeds; the house was in name of Murray's sister. He explained that Murray was not able to reach him at his New Jersey telephone number because his phone had been disconnected for nonpayment. At the District Ethics Committee hearings, Respondent maintained that he met a woman whom he identified as Brenda Williams at a reception in Washington, D.C. She was a consultant in foreign oil transactions. He also met a man involved in oil transactions who stated that he was involved with buying and selling oil. They needed working capital and agreed to repay the investors twice the amount of their investments within a one month period. Respondent maintained that he would not have taken the money if he had known that the transactions were not ongoing, or if he thought they were not feasible. Respondent claimed that he told the investors that he was willing to stand behind the investments himself. He was told that the parties were ready to close on a deal and needed working capital to carry it through. Respondent further claimed that he was promised by Brenda Williams that the money would be wired directly into his bank account. He told Murray that the funds should be there by a certain date, but they never were received. At the Board hearing, Respondent elaborated by stating that he was supposed to receive one half million dollars from Williams. Concerning the $25,000 check to Murray, Respondent maintained that he was giving Murray a gift of $19,000 because he assumed Murray had lost $6,000 of his investment. Respondent maintained that he had not provided legal services for any of the parties involved in this matter. The $25,000 check was drawn against Respondent's attorney account in this state. Concerning the Wright and Fountain complaints, the District Ethics Committee concluded that Respondent was guilty of violating DR 1-102(A)(3) and (6). It held that an attorney who held himself out as an investment counselor had a high obligation, especially when the clients relied on him because he was an attorney. Concerning the Murray complaint, the Committee found that Respondent violated DR 1-102(A)(3), (4) and (6) in that Respondent's conduct adversely reflected upon his fitness to practice law, that he engaged in conduct involving dishonesty, fraud or misrepresentation, and that he engaged in other conduct which adversely reflected upon his fitness to practice law. Respondent was temporarily suspended from the practice of law on August 29, 1983 by the Supreme Court. That suspension remains in effect. See 94 N.J. 623 (1983).