Attorney Grievance Commission v. Levin

91 A.3d 1101, 438 Md. 211, 2014 Md. LEXIS 296
Court of Appeals of Maryland·Decided May 16, 2014·No. 75ag/12·Published·Cited by 16 cases

Opinion

ADKINS, J.

Petitioner, the Attorney Grievance Commission of Maryland (“AGC”), acting through Bar Counsel, filed a Petition for Disciplinary or Remedial Action (“Petition”) against Respondent, Ronald Marc Levin. Bar Counsel alleged that Levin, in connection with his employment at the law firm of Joseph, Greenwald & Laake, P.A. (“JGL”) from December 2010 through November 2011, engaged in professional misconduct as defined by Md. Rule 16-701(i), violating sections (a), (b), (c) and (d) of Rule 8.4 of the Maryland Lawyers’ Rules of Professional Conduct (“MLRPC”), as adopted by Md. Rule 16-812. Rule 8.4 of the MLRPC states, in pertinent part:

Rule 8.4 Misconduct.

It is professional misconduct for a lawyer to:

(a) violate or attempt to violate the Maryland Lawyers’ Rules of Professional Conduct, knowingly assist or induce another to do so, or do so through the acts of another;
(b) commit a criminal act that reflects adversely on the lawyer’s honesty, trustworthiness or fitness as a lawyer in other respects;
(c) engage in conduct involving dishonesty, fraud, deceit or misrepresentation;
(d) engage in conduct that is prejudicial to the administration of justice[.]

Following a hearing before the Circuit Court for Montgomery County, the hearing judge found that Levin violated Rule *215 8.4(a) and Rule 8.4(c), but did not violate Rule 8.4(b) or Rule 8.4(d).

THE HEARING JUDGE’S CONCLUSIONS

The disciplinary hearing was held before a judge of the Circuit Court for Montgomery County. Both parties appeared and presented evidence. The hearing judge made the following findings of fact based upon clear and convincing evidence:

The following facts are not in dispute. Respondent Levin became a member of the Maryland Bar on June 17, 1992. The Respondent practices exclusively bankruptcy law, and appears in bankruptcy courts in both Maryland and the District of Columbia. On November 1, 2010, Respondent signed an Employment Agreement with JGL. According to the terms of the Agreement, Respondent’s employment with JGL would commence on December 1, 2010 and continue for a period of one year. The Agreement also indicated that Respondent’s salary would be 50% of his net originated income (“NOI”). During the hearing on April 25, 2012, David Bulitt, Esquire, a shareholder and Assistant Managing Director with JGL, testified that NOI is defined as the attorney’s gross fee income from all cases and clients originated by that attorney minus certain charges (costs and other attorneys working on the cases). Respondent’s initial salary could not be determined in advance, so his initial salary was set at $200,000. This salary would be reviewed on a quarterly basis by the firm’s Director of Finance and the firm’s Executive Committee, per the terms of the Agreement, and adjustments could be made based on actual performance.
The Respondent worked for JGL from December 2010 to October 2011, and during the course of Respondent’s employment, Respondent made false statements to Mr. Bulitt with respect to the number of cases he was handling, the number of legitimate bills he had sent, and his expectation of payment. Mr. Bulitt, who has been a personal acquaintance of the Respondent since childhood days, conducted the *216 quarterly reviews of the Respondent’s work performance. During these reviews, as well as on other occasions, Respondent misrepresented to Mr. Bulitt the size of his caseload and the fee amounts he expected to receive from such work. In furtherance of these oral misrepresentations, the Respondent created fictitious clients and drafted paperwork for these fictitious clients and showed these documents to Mr. Bulitt.
In October 2011, the Respondent received a job offer from another law firm and notified JGL of his intention to resign. The [Respondent left his employment with JGL in October 2011. Based on a final review conducted by Mr. Bulitt of the Respondent’s work performance, a significant deficiency was discovered between Respondent’s initial salary and his actual earnings for the firm. It was determined that the Respondent owed the firm $151,191.17 based on the deficiencies in his client billings. The Respondent did not contest the deficiency and paid this debt in full to JGL on December 29, 2011.
Mr. Bulitt testified that, had the Respondent been candid with him about his actual work performance and client billings, the firm would have reduced the Respondent’s $200,000 salary accordingly. This Court accepts that statement as true because, if salary adjustments were not going to be made, Mr. Bulitt would not have met with the Respondent until the end of the year. Furthermore, the Respondent feared a decrease in his pay and went to great lengths in order to deceive the firm.
The Respondent concedes [that] he has violated sections (a) and (c) of Rule 8.4 of the Maryland Lawyers’ Rules of Professional Conduct. Therefore, the issues in dispute in this case are: whether the Respondent’s misrepresentations to Mr. Bulitt and JGL and the falsified client billings he created violated sections (b) and (d) of Rule 8.4, and what if any aggravating and/or mitigating factors exist. Because of the Respondent’s willful misrepresentations and dishonest conduct, JGL continued paying the Respondent installments of his $200,000 annual salary.

*217 The Court finds that the Respondent’s motivations for his misrepresentations to JGL were his need to support himself and his family, and to avoid embarrassment. The Court finds that the Respondent’s misrepresentations were deliberate and continuous throughout his employment with JGL. The Respondent was fully aware of the wrongfulness of his acts and specifically intended to conceal such conduct. The Respondent did not elect to self-report his deficient performance to the firm prior to his departure from JGL and JGL’s detection of his deceptive practices. Mr. Bulitt’s and the Executive Committee’s final audit revealed the extent of the Respondent’s dishonest conduct. Furthermore, it was only after JGL threatened to report the Respondent’s conduct to the Attorney Grievance Commission that the Respondent reported his activities to Maryland Bar counsel. Once the Respondent was made aware of the financial toll of his poor performance at JGL[,] the Respondent paid the entire debt of $151,191.17 within two months. As a Member of the Maryland Bar and an employee of JGL, it was the Respondent’s obligation to maintain honesty and candor toward his employer with respect to his performance and financial compensation.

Conclusions of Law

Maryland Rule 16-757 governs a disciplinary hearing before the Circuit Court. The Petitioner, the Attorney Grievance Commission, has the burden of proving the averments of the petition by clear and convincing evidence. Maryland Civil Pattern Jury Instruction 1:9 gives the definition of clear and convincing evidence as follows:

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Attorney Grievance Commission v. Levin, 91 A.3d 1101, 438 Md. 211, 2014 Md. LEXIS 296 (Md. 2014).

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