Opinion ID: 2330836
Heading Depth: 2
Heading Rank: 3

Heading: Committee Complaint (VI-82-32E)

Text: In a criminal action brought by the United States Attorney's Office, respondent was charged with a ten-count violation of 26 U.S.C. 7203 for his failure to pay income and Social Security taxes on behalf of his employees and Social Security taxes on behalf of the employer. The ten counts each covered a calendar quarter from July 1, 1976 through December 31, 1978 during which these taxes were not paid nor tax returns filed. After a plea bargain with the United States Attorney's office, respondent pled guilty to a violation of the statute for one of the quarters. He received a probationary sentence of one year and a $5,000 fine. The District Ethics Committee filed a complaint against respondent based on his guilty plea. A hearing was held solely to consider the issue of mitigation since the plea was conclusive evidence of respondent's unethical conduct. The Committee heard testimony from respondent and his secretary, Ms. Dixie Angulo, both of whom stated that for a period of 18 months during 1976 and 1977, respondent's mother, with whom he lived, suffered a stroke from which she eventually died. Respondent was her only child. During this period, respondent visited her constantly in the hospital (three to four times daily) and subsequently at a nursing home. The period during which respondent's mother was ill coincided with some of the quarters during which his employees' and employer's taxes were not paid. The Committee recognized that the pressure of his mother's illness, coupled with those attendent on his law practice, may have led respondent to neglect some of his other obligations. The testimony of Ms Angulo, however, revealed that she prepared the tax forms for respondent's signature and that he failed to perform the simple ministerial duties of checking and signing the forms and mailing them. Consequently, the Committee held that the length of time respondent failed to pay the taxes, coupled with the ease with which the returns could have been filed, belied any mitigating circumstances respondent offered. The Committee was also unpersuaded by the fact that the unpaid taxes remained in respondent's business account throughout the ten quarters. The Committee, accordingly, found respondent guilty of violating DR 1-102(A)(3) and (6).