“[A] Rare, If Not Unique, Situation”

The District of Columbia Court of Appeals agreed with the Board of Professional Responsibility that an informal admonition was the appropriate sanction for a criminal conviction.

In 2007 the United States charged E-GOLD, Respondent, and other individuals with violations of federal and District of Columbia criminal laws, including conspiracy to commit money laundering and operation of an unlicensed money transmitting business. The government alleged, among other things, that the businesses and the individuals had conspired to conduct financial transactions that involved the proceeds of unlawful activity such as child exploitation and fraud. Respondent pled guilty in the United States District Court for the District of Columbia to a felony violation of D.C. Code § 26-1002, a strict liability offense which prohibits operation of a money transmitting business without a license. The indictment asserted that Respondent committed this crime between 2002 and 2003, and Respondent agreed to a Statement of Offense that gave examples of transactions during those years…

At sentencing, Respondent told Judge Rosemary Collyer that he “did not intend” to violate the law regarding licensing, but he admitted that he “was wrong[.]” Respondent noted that he did not have expertise in the relevant area and claimed that he had “looked to experts just like when others have looked to me on employee benefits issue[s].”

Judge Collyer stated that she “believe[d] [Respondent] when he says that he didn‟t intend to violate the law.” She recognized that Respondent and E-GOLD had been “in a slow prodding comfortable way trying to figure . . . out” their legal obligations, including by “meeting with the government . . . and trying to get advice[.]” Finally, she noted that Respondent “is clearly a good lawyer and a good husband and a good father and a good member of his church in his community and has no criminal history.” Judge Collyer sentenced Respondent to 180 days‟ incarceration, suspended in favor of 36 months‟ probation, and imposed a $2,500 fine.

Disciplinary Counsel sought disbarment or, in the alternative, a three-year suspension. Much of the litigation involved an attack on Judge Collier’s conclusion that he had relied on the advice of counsel.

The court quoted the board

This case presents the rare, if not unique, situation wherein a respondent pleaded guilty to a single nonscienter felony unrelated to the practice of law, the crime was committed in a climate of legal and regulatory uncertainty, Bar Counsel has failed to prove moral turpitude or dishonesty by clear and convincing evidence, there are no other disciplinary charges, and Respondent’s disciplinary record and character are unblemished.

Another notable aspect is that this case took nine years to resolve. (Mike Frisch)