Opinion ID: 2297758
Heading Depth: 1
Heading Rank: 8

Heading: Judge Cahill's Findings Regarding Mughal Complaint

Text: Makbul Mughal retained respondent on April 4, 2009 in connection with an action against a former tenant. He signed a retainer agreement under which, for a flat fee of $1,750, respondent would file one or more writs of garnishment to enforce a judgment Mr. Mughal had obtained against the tenant and would file a separate action against the tenant for damage done to the property. In accordance with the agreement, Mr. Mughal paid $875 of the fee on April 4; he was to pay the other half by the end of the month. Mr. Mughal, or his son on his behalf, called on several occasions to inquire whether the garnishments and the lawsuit had been filed. On April 21, 2009, respondent told the son that she had filed garnishments against all three of the tenant's employers and also had filed the lawsuit. The next day, she reported that one employer had been served but that the other two and the tenant himself had not been served and could not be found. Several further inquiries in May and June elicited no helpful information. Finally, on June 3, 2009, in response to a request for copies of the writs of garnishment and complaint, respondent terminated her representation. At that point, no lawsuit had been filed against the tenant and there was no evidence that any of the writs of garnishment had been issued or served. Mr. Mughal never paid the remaining $875. On July 7, 2009, Mr. Mughal sent copies of his correspondence with respondent to Bar Counsel, who regarded it as a complaint and, on July 16, requested a written response from respondent. In her response, respondent advised, among other things, that she had deposited Mr. Mughal's check for $875 in her escrow account, that she used the money for court costs, etc. and that she was entitled to the funds. She claimed that she did not receive the paperwork necessary to file the lawsuit until April 14 and that, with respect to the writs of garnishment, she was unable to serve the defendant. In response to further inquiries from Bar Counsel, she asserted that the writs of garnishment she had prepared had been sent to Mr. Mughal and, for that reason, were not in the client file she had forwarded to Bar Counsel. In a letter to Bar Counsel dated January 28, 2010, respondent stated that it was the policy of her office to cash all client checks at the drawee bank and then deposit the cash into either her escrow or operating account. She enclosed a deposit slip dated April 7, 2009 showing a deposit of $1,300 and claimed that the cash proceeds from Mr. Mughal's check were part of that deposit. Respondent had altered the deposit slip with a black pen so that the account name and number were not visible. Upon Bar Counsel's demand, on February 22, 2010, she sent an unadulterated copy of the deposit slip and asserted that the deposit had been made to her operating account because it had to be used to pay direct expenses for the client in short order. She also sent copies of blank checks on her operating and escrow accounts. The documents indicate, and Judge Cahill found, that the unredacted deposit slip involved an account that was neither respondent's operating or escrow account, but rather appeared to be a personal checking account. On the evidence before him. Judge Cahill found that Bar Counsel had failed to prove most of the charges emanating from the Mughal case, including alleged violations of MLRPC 1.1 (competence), 1.2 (failure to abide by client decisions, acting without authorization), 1.3 (diligence), or 1.4 (communication with client). He also concluded that, as Bar Counsel had failed to charge a violation of MLRPC 1.15 (safekeeping property) or Rule 16-607 (commingling funds) with respect to the payment by Mr. Mughal, he was unable to find a violation of those provisions. With respect to the alleged violations of MLRPC 8.1 (knowingly making false statement of material fact in connection with disciplinary matter) and 8.4(c) and (d) (conduct prejudicial to the administration of justice, conduct involving dishonesty, fraud, deceit, or misrepresentation), however, Judge Cahill found: (1) From the beginning of the investigation through the evidentiary hearing, respondent failed to be forthright and knowingly made numerous false statements of material fact. (2) Respondent was egregiously dishonest with Bar Counsel regarding her escrow account generally, first telling Bar Counsel that she had deposited Mr. Mughal's check into her escrow account, in support of which she submitted adulterated bank documents, then claiming that the check was deposited in her operating account, which also was untrue. (3) In contrast to her statement that it was her policy to cash all client checks at their respective banks and then deposit the cash into one of her accounts, bank documents showed that, in February 2008, February 2009, June 2009, December 2009, February 2010, and March 2010, client checks were deposited directly into her escrow account. (4) Documents submitted to Bar Counsel showing sample activity on respondent's escrow account were false. They purported to show two cash deposits of $274, one for Carberry and one for Jenis, a total of $548, when the bank records subpoenaed by Bar Counsel showed that the $548 deposit consisted of $298 in cash and a check for $250 from Waldvogel. (5) In general, [r]espondent's commitment to hiding the truth from Bar Counsel was systematic and unwavering.