A Legal Fiction, A Real Suspension

An attorney whose law firm was a “legal fiction” was suspended for three months by the New Jersey Supreme Court.

The Disciplinary Review Board report has the story.

 Frederick Todd and Respondent established the law firm of Todd, Ferentz and Edelstein LLP (TFE). The firm dissolved on December 17, 2013, about two years later. Todd is a licensed attorney in California as was Ferentz. Ferentz was deceased prior to the creation of the firm.

At the time of the formation of the firm, respondent was an active duty captain in the United States Air Force and served as a chaplain. From December 2010 through July 2011, he was deployed to Afghanistan and Qatar. After his deployment, respondent was stationed at the Offutt Air Force base in Bellevue, Nebraska. On various occasions, he had also been stationed at Maxwell Air Force base in Montgomery, Alabama. Todd was respondent’s religious sponsor to the Department of Defense through an entity known as Pirchei Shosanim, Inc. On January I0, 2013, respondent received an honorable discharge from the Air Force. Respondent neither intended to practice nor actually practiced law with TFE and never received remuneration for his partnership. 

The violations

Respondent acknowledged to the OAE that his partnership with TFE was a legal fiction created in order to allow Todd to open and operate a law firm in New Jersey. As stated, he did not intend to be an active partner with TFE, but rather to lend his law license to TFE so that Todd could operate the firm. Respondent was willing to participate in this scheme out of fear that Todd would withdraw his sponsorship with the Air Force, threatening respondent’s ability to remain a chaplain. Nonetheless, respondent failed to ensure that the firm complied with the [Rules of Professional Conduct]. 

The Orthodox Union had a story on his work as a chaplain. (Mike Frisch)