Opinion ID: 2603654
Heading Depth: 3
Heading Rank: 3

Heading: State Bar Proceedings and Recommendations

Text: The hearing panel, consisting of a single referee, cited petitioner's prior discipline as an aggravating factor. In mitigation, the referee listed these eight circumstances: (1) petitioner's candor with the State Bar; (2) petitioner's stipulation to having violated former Rules of Professional Conduct, rule 8-101(B)(4) (duty to promptly pay or deliver client funds), and Business and Professions Code sections 6068 (duties of attorneys) and 6103 (violation of oath); (3) petitioner's restitution to Mrs. Cabrera; (4) the aberrational nature of petitioner's conduct; (5) the absence of other complaints against petitioner; (6) the severe financial stress to which petitioner was subjected as a result of the near failure of Agri-Feeds; (7) the testimony of the ten character witnesses; and (8) the three client letters. The referee recommended that petitioner be suspended from the practice of law for three years, that the suspension be stayed, and that petitioner be placed on probation for five years subject to conditions that included actual suspension for six months. The review department, by a vote of 12 to 2, adopted the referee's findings, with certain modifications. It deleted the referee's conclusions with respect to aggravation, and substituted a brief recitation of the facts relating to petitioner's prior discipline. The review department also determined that [i]n misappropriating the funds of Ms. Cabrera, [petitioner] took advantage of a family friend who was residing in Tennessee and who accordingly was at a disadvantage with respect to protecting her interests. The review department deleted the referee's second, third, fourth, fifth, sixth, and eighth factors in mitigation, and stated that most of petitioner's character witnesses were surprised to learn at the hearing that the funds had not been repaid. It added a finding that petitioner had candidly admitted the misappropriation to his client, and a finding that petitioner was guilty of gross neglect in the management of his client trust funds. In recommending disbarment, the review department relied on the Standards for Attorney Sanctions for Professional Misconduct (Transitional Rules Proc. of State Bar, div. V; all further references to standards are to these provisions). The review department concluded that compelling mitigating circumstances did not clearly predominate, and it disregarded petitioner's restitution as a mitigating factor because the restitution was not made until after the hearing in this case. It gave little weight to petitioner's character witnesses because of their mistaken belief that [petitioner] had promptly returned Ms. Cabrera's funds. It rejected petitioner's defense of financial stress because the defense did not meet the criteria of standard 1.2(e)(iv) for extreme emotional difficulty, and because the defense was very questionable as an acceptable factor in mitigation. It did, however, consider petitioner's candor as a mitigating consideration.