Opinion ID: 2319358
Heading Depth: 1
Heading Rank: 1

Heading: conclusion

Text: Judge Ausby found by clear and convincing evidence that Respondent's acts and omissions constituted a violation of Rules 8.4(a)-(d) and 1.15(a) of the MRPC. The hearing judge also found that Respondent violated the Maryland Business Occupations and Professions Art. Sec. 10-304(a). [6] As to MRPC 1.15(a), safekeeping of client funds, the hearing judge made the following conclusions of law: The failure to establish a proper trust account and the failure to hold property of clients or third persons that is in a lawyer's possession in connection with a representation separate from the lawyer's own property is a violation of Rule 1.15(a) of the MRPC. MRPC 1.15(a); see Attorney Grievance v. Mitchell, 386 Md. 386, 872 A.2d 720 (2005). Further, in accordance with the Maryland Business Occupations and Professions Code § 10-304, a lawyer expeditiously shall deposit trust money into an attorney trust account. In this case, the Respondent never maintained a trust account while representing clients at his side practice. In addition, the Respondent deposited the initial retainers for Ms. Stewart and Mr. Lennon into his personal account prior to earning all of the legal fees. There is clear and convincing evidence that the Respondent violated Rule 1.15(a) of the MRPC and the Maryland Business Occupations and Professions Code § 10-304(a) by failing to place the initial retainers of clients into a separate trust account until such fees were earned by the Respondent. See Attorney Grievance v. Thomas, 409 Md. 121, 165, 973 A.2d 185 (2009) (finding that Respondent's placement of the entire retainer fee from the client including at least a portion not yet earned into his general operating account violates § 10-304(a) and MRPC 1.15(a)). As to MRPC 8.4(b), engaging in criminal conduct that reflects adversely on a lawyer's honesty, trustworthiness and fitness as a lawyer, the hearing judge made the following conclusions of law: Criminal prosecution is not required to find a violation of MRPC 8.4(b) and its absence does not necessarily mean the Rule has not been violated. Attorney Grievance v. Breschi, 340 Md. 590, 667 A.2d 659 (1995). [The Rule requires]. . . clear and convincing evidence of conduct that constitutes a commission of the criminal offense. . . . Attorney Grievance v. Proctor, 309 Md. 412, 418, 524 A.2d 773 (1987). Further, the court must also find that the criminal conduct adversely reflects on the lawyer's honesty, trustworthiness, or fitness as a lawyer in other respects. MRPC 8.4(b); see Attorney Grievance v. Thompson, 367 Md. 315, 324, 786 A.2d 763, 769 (2001). The Respondent [is] alleged to have committed theft by accepting payments directly from clients and retaining clients outside of B & S. Theft is the unauthorized control over property. MD.CODE ANN., CRIM. LAW ART. § 7-104(a). Unauthorized control over property means a person who willfully or knowingly obtains or exerts unauthorized control over property by either intending to deprive the owner of property, willfully or knowingly using, concealing or abandoning the property in a manner that deprives the owner of the property, or using, concealing or abandoning the property knowing the use, concealment or abandonment probably will deprive the owner of the property. MD.CODE ANN., CRIM. LAW ART. § 7-104(a)(1)-(a)(3). There is clear and convincing evidence that the Respondent deposited payments from clients into his personal account. Several of the clients were previously B & S clients that had been terminated because of outstanding balances to B & S. The Respondent continued to represent these clients despite Mr. Sheehan's orders to terminate the attorney-client relationship. The payments received directly by the Respondent represented legal fees still owed to B & S. The Respondent was never authorized to receive and deposit any payments directly from clients. The Respondent willingly and knowingly deposited checks from previous B & S clients that had outstanding balances with B & S. There is clear and convincing evidence that the Respondent willfully exerted control over checks and intended to deprive B & S of the checks. Theft is criminal conduct that explicitly and adversely reflects on a lawyer's honesty, trustworthiness, and fitness as a lawyer. Therefore, there is clear and convincing evidence that the Respondent has violated Rule 8.4(b) of the MRPC by engaging in criminal conduct that reflects adversely on his honesty, trustworthiness and fitness as a lawyer. As to MRPC 8.4(c), engaging in conduct involving dishonesty, fraud, deceit and misappropriation, the hearing judge made the following conclusions of law: The misappropriation of client's funds and third party funds is considered conduct that constitutes moral turpitude and is considered an act of deceit and dishonesty, which is in violation or Rule 8.4(c) of the MRPC. See Attorney Grievance v. Moore, 301 Md. 169, 482 A.2d 497 (1984); Attorney Grievance v. Ezrin, 312 Md. 603, 541 A.2d 966 (1988). While employed as an attorney at B & S, the Respondent deposited retainers and payments from clients into his personal account. The Respondent was never authorized to retain former clients of B & S and continue representing them as part of his side practice. The Respondent was never authorized to receive any payments directly from clients to deposit into his personal account. Moreover, the Respondent was never authorized to use B & S resources in order to maintain his side practice. The Respondent's intentional misconduct reflects adversely on his honesty, trustworthiness and fitness as a lawyer. There is clear and convincing evidence that the Respondent has violated Rule 8.4(c) of the MRPC by misappropriating payments received from his clients that represented [legal fees still owed to B & S] and using B & S resources to maintain his side practice. Furthermore, there is clear and convincing evidence that the Respondent violated Rule 8.4(c) of the MRPC by depositing Ms. Stewart's and Mr. Lennon's initial retainers into his personal account prior to earning the legal fees. See Attorney Grievance v. Moore, 301 Md. 169, 482 A.2d 497 (1984); Attorney Grievance v. Ezrin, 312 Md. 603, 541 A.2d 966 (1988). As to MRPC 8.4(d), involving conduct that was prejudicial to the administration of justice, the hearing judge made the following conclusions of law: The Court of Appeals of Maryland has found that conduct constituting the misappropriation of client or third party funds to be prejudicial to the administration of justice in violation of Rule 8.4(d) of the MRPC. See Attorney Grievance v. Snyder, 368 Md. 242, 260-61, 793 A.2d 515, 525-26 (2002); Attorney Grievance v. Hollis, 347 Md. 547, 702 A.2d 223 (1997). There is clear and convincing evidence that the Respondent has violated Rule 8.4(d) of the MRPC by misappropriating payments received from clients that represented B & S' fees. Finally, as to MRPC 8.4(a), the hearing judge determined that: When an attorney has violated several Maryland Rules of Professional Conduct, he necessarily violates 8.4(a) of the MRPC as well, which [provides that it is] professional misconduct [for] a lawyer [to] violate[ ] or attempt[ ] to violate the Maryland Rules of Professional Conduct. Attorney Grievance v. Foltz, 411 Md. 359, 983 A.2d 434 (2009). There is clear and convincing evidence that Respondent has violated Rules 8.4(b)-(d) and 1.15(a) of the MRPC by committing professional misconduct. . . . Therefore, there is clear and convincing evidence that the Respondent has violated Rule 8.4(a) of the MRPC. The hearing judge noted several mitigating circumstances. Judge Ausby found that Respondent cooperated with the Attorney Grievance Commission's investigation by submitting a letter to Bar Counsel describing his billing practices and use of B & S resources. Respondent also informed Bar Counsel that he signed an agreement with B & S to pay B & S an amount representing the fees that B & S clients had paid directly to Respondent, while Respondent was employed at B & S. The hearing judge further found that Respondent had not engaged in any previous known acts of misconduct, and that his prompt issuance of checks to B & S for CJA legal fees indicated that he did not intend to deceive B & S, with regards to the CJA cases. The hearing judge also noted several aggravating circumstances. Judge Ausby found that Respondent had intentionally deceived B & S by maintaining a side practice while a full-time salaried employee of B & S. The hearing judge found that Respondent had represented and personally accepted payments from terminated B & S clients after B & S expressly prohibited such representation. In addition, the hearing judge found that Respondent failed to disclose his side practice to B & S, and used B & S resources to maintain his side practice. According to the hearing judge's findings, Respondent intentionally deceived his side practice clients by using B & S letterhead, stationary, retainer agreements and billing statements, and thereby purported to represent these clients as an attorney of B & S. The hearing judge stated that Respondent's motives were dishonest because he purposefully and intentionally did not disclose to anyone at B & S that he was accepting payments directly from clients and retaining clients outside of B & S to supplement his full-time salary at B & S. In addition, the hearing judge noted that, even if Respondent had been authorized by B & S to maintain a side practice, Respondent still failed to maintain a trust account for his side practice clients. Finally, the hearing judge pointed out that, Respondent has been practicing law since 1991 and should be considered to have substantial experience in the practice of law.