A Christmas Story

The California State Bar Court Review Department has recommended a partially-stayed two year suspension of an attorney who had misappropriated the proceeds of a settlement of a tort action on behalf of his parents.

The attorney had assigned his interest in the settlement to a New York company (Modeso) in exchange for a $10.000 payment.

When the case settled, he failed to pay and lied to the company representative.

At trial, [the attorney] testified that he lied to Modeso because he needed the money to pay his staff. He reasoned that he could not live with himself if he laid off his employees just before Christmas. [He] claimed that he intended to pay Modeso as soon as other cases settled, but they spiraled into protracted litigation. He described his remorse: “I am ashamed that I lied the way I did. What I should have done is told Modeso about my situation and been forthright with them and let them take the course of conduct that they chose to take in response.”

He must serve a minimum of six months actuual suspension under the proposed sanction.

The California Supreme Court previously had rejected a stipulated 30 day suspension in the matter. (Mike Frisch)