Opinion ID: 2260979
Heading Depth: 1
Heading Rank: 3

Heading: facts relevant to reinstatement

Text: ¶ 4 The majority does not present a detailed factual outline of what brought about Stewart's suspension from the practice of law for four years, a suspension tantamount to disbarment. [3] On September 20, 2002, we entered an order of interim suspension. The suspension arose from Watts' criminal conviction on May 21, 2002 in the United States District Court for the Western District of Oklahoma for failure to file her 1996 federal income tax return and for contempt for wilfully failing to disclose charges of $30,000.00 in fees in bankruptcy proceedings. In addition, the respondent was suspended from the practice of law in the United States Bankruptcy Court for the Western District of Oklahoma and in the United States Bankruptcy Court for the Eastern District of Texas. ¶ 5 Stewart pled guilty to charges of income tax evasion and to contempt charges related to failing to disclose fees collected in numerous bankruptcy proceedings. She was placed on probation for four years, ordered confined in her home for 180 days, and directed to complete 104 hours of community service. Having met the conditions of her probation, Stewart was successful in having her probation terminated on October 1, 2004, approximately 16 months earlier than originally scheduled. We can only assume that, at that time, she was meeting her obligation to the IRS as the making of such payments was a condition of her probation. [4] ¶ 6 On February 11, 2003, we suspended the attorney for four years retroactive to the date of the interim suspension order. A consideration taken into account in State ex rel. Oklahoma Bar Ass'n v. Stewart (Stewart I), 2003 OK 13, 71 P.3d 1, in entering the four-year suspension rather than disbarment was the respondent's agreement with the IRS to pay her tax debt of approximately $16,566.00. ¶ 7 It is apparent that the respondent did not take her promise to repay her tax debt seriously either when it was made to the IRS, to the federal court at the time her probation was entered, or to this Court. Almost immediately after having filed a bankruptcy petition seeking to discharge a tax liability of between $200,000.00 and $500,000.00, [5] the respondent filed a petition for reinstatement. The bankruptcy proceeding was filed in January of 2007, well after the date the respondent was successful in getting her probation terminated. Stewart withdrew the application upon advice of the General Counsel's Office that other attorneys not having satisfied tax obligations had been denied reinstatement. ¶ 8 On March 19, 2007, Stewart received her discharge in bankruptcy. She filed a second petition for reinstatement on September 8, 2008 pursuant to Rule 11, Rules Governing Disciplinary Proceedings, 5 O.S.2001, Ch. 1, App. 1-A. The trial panel determined that Stewart had not met the burden of proof for reinstatement and recommended that reinstatement be denied and costs of $1,015.53 be imposed. Several factors were of specific importance to the trial panel in making its recommendation that reinstatement be withheld. It found it difficult to make a faithful assessment of Stewart's testimony in relation to her awareness of her past conduct and moral character. [6] The trial panel was not convinced that Stewart was yet fully aware of the seriousness of her misconduct and the disrepute she had brought on the profession. Rather than recognizing the seriousness of her criminal conviction, she gave excuses and made rationalizations causing the trial panel concern. Stewart was defensive and evasive in answering questions before the trial panel. [7] Finally, the trial panel found troubling Stewart's representation that restitution had been made fully by her discharge of a debt of approximately $300,000.00 which was the subject of a tax lien. It observed that notwithstanding Stewart's legal discharge of her tax debt, she made no comment to indicate that she had a sense of moral obligation to pay her income taxes.