Art Of The Deal Gets Attorney In Trouble
The Georgia Supreme Court has rejected a petition for voluntary discipline in a matter that involves client property
The complaint, as amended, charges Coulter with violations of various Rules of the Georgia Rules of Professional Conduct arising out of his representation and professional relationship with one of his long-time clients. This client was and is an artist representative, and he represented a renowned artist, now deceased, whose work possesses considerable value…
In 2010, Coulter assumed more responsibility over the client’s affairs, becoming involved in the receipt, depositing, transfer, and disbursement of the client’s funds collected in the course of the client’s businesses. It appears that the client knew of some of the accounts Coulter had opened on behalf of the client but did not know of others, and in some of the accounts Coulter was the sole authorized signer. Coulter concedes these accounts were not approved lawyer-trust accounts and that they held only funds related to the client and his businesses, yet Coulter transferred funds from or through the client’s accounts to his operating account as payment of attorney fees. It also appears that in just the final ten months of Coulter’s representation of this client, he administered more than $1 million through the client’s accounts. In those final months, Coulter paid himself $400,000 in fees from the client’s bank accounts. Apparently, these are the only months of financial records made available to the Special Master who was appointed to conduct proceedings in this case. Coulter did not provide any billing invoices to the client after 2008, but two of the complainants are lawyers who were formerly associates in Coulter’s law firm, and they printed a set of invoices from the firm’s billing system in 2011 and provided them to the client. The invoices contained substantial discrepancies that Coulter could not explain. Coulter concedes he did not keep and maintain complete and accurate records of this client’s funds and did not promptly notify the client of Coulter’s receipt of funds in which the client possessed an interest.
In 2008, Coulter obtained from the client over 100 pieces of art created by the above-mentioned artist with an estimated value at the time the complaint was filed of over $850,000. They were taken as security for the substantial sums Coulter claims were owned to him for professional services. Coulter claims the client signed a written security agreement permitting him to hold the art as security for amounts owed, but the client disputes this, and Coulter was unable to locate the signed agreement. Coulter admits that, before taking possession of the art pieces, he did not advise the client about the material risks this arrangement could pose to Coulter’s ongoing representation of him and his businesses, and did not advise the client to seek the advice of independent counsel. Coulter kept the art in a box in an unsecure location in his personal office at his law firm. Although someone in Coulter’s office apparently returned the art to the client when the client terminated his relationship with Coulter, it does not appear that the client has been made whole since significant funds were taken from his accounts without adequate documentation of fees and expenses or Coulter’s entitlement to them.
The attorney was admitted in 1971, has two prior disciplinary sanctions and was willing to accept a two-year suspension but
Given the serious nature of the admitted rule violations in this case, and the record facts, we reject the recommendation of the Special Master to impose a voluntary two-year suspension.
(Mike Frisch)