Disbarred In Arizona And Now Tax Court; Only Cautioned In New Mexico

The United States Tax Court has issued a press release reporting the disbarment of four attorneys based on state court-imposed sanctions. 

One matter involved an Arizona order of disbarment based on findings that the attorney had bartered legal services for nude photos

From the Tax Court’s release

Mr. Moffatt’s disbarment from the practice of law in the State of Arizona was based on his misconduct in communications via Facebook Messenger on October 11,2013. According to the Findings of Fact in the Decision and Order, the exchange was as follows:

MS. CHILDERS: Hi[,] I’m the person [Plat [S]purlin talked to you about … I just wanted to let you know i’m trying to get the 75.00 round up [for an initial consultation] and hopefully will be in touch with you next week.

MR. MOFFATT: I take all sort of things as trade fyi. C.A.P. Cash, Assets ….

MS. CHILDERS: I’ve pretty much sold everything I have of value[.] … So … I will get it[,] it will just take [the] weekend. Mr. Moffatt then asked Childers to send “me the basics” and stated that he would take “the position that it [the fee] is on the way.”

MR. MOFFATT: fyi-I have a bad boy streak in me, just like my father. This allows me to be flexible.

MS. CHILDERS: Awesome. Rock on bad boy.

MR. MOFFATT: How about a pic. And then send me the money later.

MS. CHILDERS: A picture of????

MR. MOFFATT: [W]hatever you think might motivate me. How does that sit with you? Did I offend you or are we ok.

MS. CHILDERS: I am not sure what motivates you. Lol.

MR. MOFFATT: I am a bad boy that likes women. Any shape. Does that focus it[?].

Childers then sent Mr. Moffatt a picture of herself with her grandson.

MR. MOFFATT: [C]ash and assets are best, but a woman has more options. Nice pic.

MR. MOFFATT: How about a pic without [the] kid or?? How much less will I be able to see. Workable or not?

Childers subsequently sent Mr. Moffatt another picture of herself clothed.

MS. CHILDERS: [i]s this what you wanted. MR. MOFFATT: [G]ood start. How about removing something[?] [W]hen are you going to send me the docs. So I can get started.

MR. MOFFATT: [A]re you going to give me the pic with less as well. Lets just call it what I want. Yes I want a nude.

MS. CHILDERS: I don’t even take a shower nude. And what would that get me[?]

MR. MOFFATT: Give me a surrogate for you, or cash works. Childers asked Mr. Moffatt what he meant by “a surrogate” and Mr. Moffatt informed her this meant “[a]nother woman.”

MS. CHILDERS: [h]ow would I do that[?]

MR. MOFFATT: How many friends do you have[?] Say [cJan I borrow$ [ sic]. No, if not, I need apic for * * .

MS. CHILDERS: [h]ow much in services will that cover[?]

MR. MOFFATT: Pics buys time. Physical attention will be bartered. I could collect when I am in town later in year.

MR. MOFFATT: [W]hich way are we going, pic, cash, physical?

MS. CHILDERS: I’m getting my babies ready for a nap[.] I will get back with you. Mr. Moffatt informed

Complainant he would call her and then subsequently messaged her stating that he tried to call her twice.

He had contested the Arizona matter initially but later defaulted

Mr. Moffatt participated in the disciplinary proceedings before the Presiding Disciplinary Judge. He filed an answer asserting 38 affirmative defenses. He attended the mandatory telephonic initial case management conference. Mr. Moffatt served 106 requests for admission on the Arizona State Bar. He moved for a stay of proceedings. Mr. Moffatt filed a Motion for Expanded Request for Admissions in which he requested a hearing. Mr. Moffatt also moved for recusal of the Presiding Disciplinary Judge, to quash a subpoena for his deposition, to strike the State Bar of Arizona’s request for admissions, to strike the State Bar of Arizona’s request for production of documents, and to recommend an investigation of the Arizona Inspector General. However, Mr. Moffatt failed to file an initial disclosure statement. On December 30, 2015, the State Bar of Arizona moved for sanctions alleging that Mr. Moffatt had failed and refused to file an initial disclosure statement. Mr. Moffatt did not respond to this motion and did not appear at the hearing to determine if sanctions were appropriate on January 26, 2016. As mentioned above, the Presiding Disciplinary Judge found that Mr. Moffatt non willfully failed to submit an initial disclosure statement and sanctioned Mr. Moffatt by striking his Answer, rendering a default judgment against him. In addition, the Presiding Disciplinary Judge found that Mr. Moffatt willfully failed to appear and submit answers at his deposition. Mr. Moffatt also failed to appear at his aggravation/mitigation hearing on February 18,2016. 

New Mexico had considered the matter and apparently reached a different result

After the [Tax Court] hearing, Mr. Moffatt provided us with a copy of the confidential letter that he received from the Disciplinary Board of the Supreme Court of New Mexico. The letter was an official Letter of Caution issued pursuant to Rule 17­ I05(B)(3)(b) of the New Mexico Supreme Court Rules Governing Discipline for Mr. Moffatt’s communication with Ms. Childers.

The Arizona case generated some controversy.

The Santa Clarita Valley the-signal.com reported

Moffatt — a candidate for the congressional seat that takes in the Santa Clarita Valley and is now held by Steve Knight, R-Palmdale — said his actions were a “mistake,” but he believes he did nothing illegal.

“I happen to have a male drive that on occasion will come out,” he said. “In this case, it was an inopportune time.”

The woman who received the request filed a complaint in New Mexico, where she was at the time, according to Moffatt. He said the State Bar of New Mexico investigated the claims and determined by December 2013 that no attorney-client relationship existed and that the conduct was not illegal.

Moffatt said he believed the case was a “done deal” until November 2015, when the State Bar of Arizona filed charges against him. Although Moffatt is based in Lancaster, he handles federal cases and his license to practice law is through Arizona.

Judge William J. O’Neil signed the order of disbarment April 19. Moffatt appealed the decision to the U.S. Court of Appeals for the Ninth District.

Moffatt believes he is being targeted for political reasons, arguing that other attorneys have done worse and not been barred from practicing law.

“I’m being taken down for asking an out-of-state chick for a nude over Facebook three years ago,” he said.

His appeal notes that the State Bar of Arizona filed charges only a week after his wife, Star Moffatt, announced her candidacy for California Senate District 21, which takes in most of the Santa Clarita Valley.

Moffatt alleges the judge who issued the order has a history of targeting high-profile Republican attorneys.

 Law360 reported that the Ninth Circuit declined to stay the disbarment. (Mike Frisch)