A Matter Of Concern To Kansas
An attorney disciplined in Missouri was sanctioned by the Kansas Supreme Court for the same misconduct.
Among the violations were a series of loans to a client in a personal injury matter secured by the settlement proceeds.
The loans not only violated the business transactions with a client rule
The interest rate for the loans was 180% for the first month, and 38.8% per annum, a rate the Panel finds excessive, burdensome, and possibly illegal. [Footnote: The hearing panel in the instant case concurs with the Missouri disciplinary hearing panel that in addition to the rule violations, the hearing panel also concludes that the interest rate charged by the respondent is excessive and burdensome.
The attorney had sued the client after his services were terminated and violated his ethical obligations
a. Filing the Odo v. [C.M.] lawsuit against [C.M.] and revealing information relating to the representation through attachment of exhibits containing client information;
b. Making a demand for payment of notes to KNP, although the notes had not yet matured;
c. Attending a debtor examination held by Dr. Febbo’s counsel (although he did not attend as counsel in the case); and
d. Generally attempting to annoy, harass and intimidate [C.M.] in retaliation for [C.M.]’s termination of the attorney-client relationship and [C.M.]’s initiation of a bar complaint.
The attorney had denied the ethics violations in the Missouri proceeding, claiming that the loans came from an entity [KNP] in which he transferred his interest to his daughter.
The acts of KNP in loaning money to Respondent’s client are the acts of Respondent himself since Respondent was the only officer, director and agent of the lender and controlled the checking account used to consummate the loans and personally signed each loan check. Respondent controlled each aspect of the transactions without the independent assistance of any other person. Respondent’s daughter Kristen Nicole Odo had no knowledge of the loan transactions between KNP and [C.M.].
The Kansas hearing panel
[Footnote: While the hearing panel is unable to find by clear and convincing evidence that the respondent was motivated by dishonesty and/or selfishness, the hearing panel is troubled by the respondent’s motivation. The respondent attempted to obtain the results of a drug test of a client, in an unrelated matter, to use against his client. The hearing panel cannot fathom a good motivation for making such an attempt. Additionally, the respondent attended a hearing in Febbo v. C.M., when he knew he had a conflict and had no legitimate reason for attending. The hearing panel is seriously troubled by the respondent’s conduct.]
..It is important for the hearing panel to note that the clients in this case are Kansas residents and the personal injury cases arose as a result of an accident which occurred in Kansas. Had the respondent filed litigation on behalf of L.F. and C.M., he would have filed it in Kansas. Because the misconduct related to Kansas clients and in representation in a Kansas matter, this is not simply a reciprocal discipline case. The respondent harmed Kansas clients. The hearing panel must consider what discipline is appropriate to recommend, independent of the discipline imposed in Missouri.
The Kansas Court
The only remaining issue before us is the appropriate discipline for respondent’s violations. At the hearing before the panel, the office of the Disciplinary Administrator recommended that respondent be suspended from the practice of law in the state of Kansas for a period of 1 year. Respondent recommended the hearing panel immediately suspend him and that he be reinstated to the practice of law in Kansas at the time the Missouri Supreme Court reinstates him to the practice of law in Missouri. The hearing panel recommended suspension for an indefinite period of time no less than 1 year. Further, the hearing panel recommended that prior to reinstatement, respondent must establish that he has made restitution to C.M. and L.F.; that he has fully cooperated with the Missouri Bar Client Security Fund Committee; that, in the event the Kansas Client Protection Fund Commission initiates an investigation and prosecution, he establish he fully cooperated with the Kansas Client Protection Fund Commission and repaid the commission or his clients as directed; and that he provided C.M. and L.F. with a sincere apology for the misconduct and harm it caused…
We hold that respondent is to be suspended from the practice of law in the state of Kansas for a period of 1 year effective as of the date of the filing of this opinion. Before reinstatement is allowed, respondent shall comply with Kansas Supreme Court Rule 218 (2015 Kan. Ct. R. Annot. 401) and Rule 219 (2015 Kan. Ct. R. Annot. 403), including a required appearance before a hearing panel for a reinstatement hearing.
Video of the oral argument is linked here. (Mike Frisch)