Mark Of Cain: Two Year Suspension Insufficient For Million Dollar Misappropriation
The Nevada Supreme Court has rejected as insufficient a proposed two-year consent suspension
This is an automatic review of a Southern Nevada Disciplinary Board hearing panel’s recommendation that this court approve, pursuant to SCR 113, a conditional guilty plea agreement in exchange for a stated form of discipline for attorney Matthew S. Dunkley. Under the agreement, Dunkley admitted to violating RPC 1.15 (safekeeping property) and RPC 8.4 (misconduct), and agreed to a two-year suspension. Dunkley was temporarily suspended on October 3, 2017. In re Discipline of Dunkley, Docket No. 74079 (Order Imposing Temporary Suspension, Oct. 3, 2017).
Dunkley has admitted to the facts and violations as part of his guilty plea agreement. The record therefore establishes that as a result of Dunkley’s gambling addiction, he misappropriated $1,060,976.94 of client funds for his personal use.
Two years is not enough
Dunkley has admitted that he violated duties owed to his clients (safekeeping property) and the profession (misconduct). Substantial evidence supports the panel’s finding that Dunkley’s mental state was intentional because he acted with a conscious objective or purpose to take money that did not belong to him to fund his gambling addiction. See Standards for Imposing Lawyer Sanctions, Compendium of Professional Responsibility Rules and Standards, 452 (Am. Bar Ass’n 2017) (defining “intent”). Dunkley’s clients were injured because they did not receive money owed to them and their lienholders were not paid. The baseline sanction before considering aggravating and mitigating circumstances is disbarment. See id. at Standard 4.11 (“Disbarment is generally appropriate when a lawyer knowingly converts client property and causes injury or potential injury to a client.”). The record supports the panel’s findings of four aggravating circumstances (dishonest or selfish motive, pattern of misconduct, multiple offenses, and vulnerability of victims) and five mitigating circumstances (absence of prior discipline, personal or emotional problems, character or reputation, mental disability (gambling addiction), and remorse).
We conclude that the agreed-upon discipline is insufficient to serve the purpose of attorney discipline.
KTNV reported on his arrest and there are details from Sally Jaramillo
According to an arrest report, the case against Dunkley came to light when authorities investigated various money transfers to a woman who was not his wife. The report said Dunkley transferred money to an exotic dancer who was also known to be his “hot girlfriend.”
During the State Bar of Nevada hearing Dunkley admitted to taking all of the funds for gambling, but an investigation showed various money transfers to Ivory Star Cain.
The court documents say Dunkley paid Cain a total over $100,000 all in exchange for Cains company which also included an active sexual relationship.
During his arraignment on Wednesday, prosecutors argued he’s a flight risk many neighbors are shocked by all the accusations as they say they never had problems with the family and found him to be kind and friendly.
The case is Matter of Discipline of Matthew Dunkley (see link here). (Mike Frisch)