Sanction By Default

The Supreme Court of Wisconsin imposed a two-year suspension in a matter in which the accused attorney had defaulted on charges of 17 ethical violations. The misconduct arose from a business transaction that the attorney had entered into with her office assistant to purchase and operate the Moonlight Supper Club. The attorney was attorney for the business entity created to make the purchase and was charged, among other things, with dishonesty, misrepresentation and trust account violations.

As to possible mitigation, it was noted that the attorney had moved to North Carolina and no longer practices law in Wisconsin:

“Although not described as a mitigating factor by the referee, it isnoteworthy that Attorney Smith informed the referee that she was injured by alightning strike in October 2001 and continues to suffer health problemsincluding ‘gradual decline in physical muscle control, memory and stressmanagement’ that induced her to close her practice in 2003. She had not previously been subject todiscipline. She also disputed some ofthe allegations, primarily with respect to the amount of knowledge, informationand control Schmidt [the office assistant/partner] had over the financial aspects of the failed business. She noted that the grievants’ allegationswere not made until after they collected unemployment compensation from heroffice. She adds:

‘Lest the Court thinks I take any of these accusationslightly, this is my life and reputation that has been ruined. I have suffered for more than three yearswith Ms. Schmidt’s and her family and friends accusations. I had voiced to OLR in 2004 that I desired toretire my license as I could not afford dues nor attend CLE’s for a professionthat I could no longer practice.’  “

It would certainly have been preferable to these charges resolved through a contested hearing rather than a default. It is hard not to have some sympathy for the accused lawyer. (Mike Frisch)