The New York Appellate Division for the Third Judicial Department has disbarred an attorney

Respondent’s misconduct arises out of his legal representation and part ownership of three media and film companies in June 2006, which entities were also partially owned by a client of respondent. In lieu of fees for his representation of the client, respondent was to receive an equity interest in the business entities. Pursuant to an operating agreement for one of the companies, approximately $690,000 was deposited into respondent’s trust account for respondent to safeguard by certain investors until 100% of funding for a production was secured. However, in furtherance of his representation, respondent entered into an agreement with a third-party company that memorialized an advance-fee scheme which ultimately led to the loss of the $690,000. Respondent admitted to the New Jersey Disciplinary Review Board that the agreement had put the investors’ funds at risk and that “he did not have the authorization of any of the investors to sign [the agreement].” Respondent accordingly sued the third-party company and obtained a judgment in excess of $20 million, however this judgment was not collectable. Respondent was also sued by the investors, which ultimately resulted in two consent judgments against respondent and his own firm, each in the amount of $890,000. However, as of the date of respondent’s disciplinary hearing, no funds were returned to the investors – either by respondent or the company.

New Jersey had imposed disbarment. (Mike Frisch)