Withholding Crimes Draw Interim Suspension

The Oklahoma Supreme Court has imposed an interim suspension for an attorney’s criminal conviction

The Oklahoma Bar Association submits that nine felony convictions for crimes that involve the misappropriation of money being held in trust for taxes facially demonstrates unfitness to practice law, and brings discredit to the legal profession in violation of the Rule 1.3, RGDP. The OBA states that Respondent, as an employer, was required to withhold federal income and FICA taxes from employees’ wages and to pay them to the IRS on their behalf. These funds are called trust fund taxes because the employer, Respondent’s law office, is essentially holding in trust money taken from employees’ wages until it is remitted to the IRS. The OBA states that with the guilty pleas, it is not disputed that Respondent was ultimately the person responsible to collect and remit the withheld taxes, and that Respondent misappropriated tax trust funds that did not belong to him, which were being held in trust for the United States to apply to the tax obligations of employees of his law office. The OBA submits that the Respondent’s convictions involve dishonesty and a breach of trust and facially demonstrate unfitness to practice law, which warrants entry of an immediate interim suspension.

The court accepted OBA’s position. (Mike Frisch)