Condo Conduct No Ethics Violation

A defeat for the Illinois Administrator from a hearing board recommendation of dismissal of disciplinary charges

The Administrator charged that Respondent and an agent falsely represented Respondent as the president of a condominium association, in order to gain access to the association’s bank account. Respondent owned units in the building. No attorney-client relationship was involved.

Respondent was added to the association’s bank account the day after an election in which Respondent was made an assistant to the Board and another individual, Hull, was elected secretary. Those results were shown on the minutes of the meeting at which the election occurred. Hull changed those minutes, to show Respondent was the president, after she and Respondent attempted unsuccessfully to be added to the association’s account. Respondent and Hull later met with a different banker, to whom the altered minutes were given, as well as additional information, which accurately identified the association officers. Respondent did not need to be president to be a signer on the account, and Hull’s authority as secretary sufficed for the account changes to be made. No funds were misappropriated.

The Hearing Board concluded that the Administrator did not prove that Respondent engaged in dishonest conduct, directly or through Hull. The Hearing Board recommended that the Complaint be dismissed.

Analysis

According to the Complaint, Respondent violated Rule 8.4(c) by falsely representing to Chase Bank that she was the president of the Association’s Board, in order to gain access to the Association’s account at Chase. The Complaint alleges Respondent did so by assisting Hull, as Respondent’s agent, to draft minutes that falsely stated that Respondent was the president and by Respondent’s own representations at Chase’s Hyde Park branch.

The Administrator did not prove Respondent violated Rule 8.4(c). We found no evidence, particularly not at a clear and convincing level, that Respondent directed Hull in changing the minutes, suggested that Hull should change the minutes, participated in changing the minutes or assisted Hull when Hull did so. Some evidence suggested Hull might have been at Respondent’s office when Hull changed the minutes, although we did not find that testimony clear and convincing. Even if Hull changed the minutes at Respondent’s office, we did not find evidence to show Respondent knowingly assisted Hull in doing so or even knew Hull was changing the minutes. Therefore, the Administrator did not prove this aspect of the charge under Rule 8.4(c).

We also did not find clear and convincing evidence to support the allegation that Respondent falsely represented herself as the president at Chase’s Hyde Park branch. Further, we did not find clear and convincing evidence of dishonest intent by Respondent.

 (Mike Frisch)