Attorney Grievance Commission v. Whitehead

950 A.2d 798, 405 Md. 240, 2008 Md. LEXIS 325
CourtCourt of Appeals of Maryland
DecidedJune 19, 2008
Docket53, September Term, 2006
StatusPublished
Cited by48 cases

This text of 950 A.2d 798 (Attorney Grievance Commission v. Whitehead) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Attorney Grievance Commission v. Whitehead, 950 A.2d 798, 405 Md. 240, 2008 Md. LEXIS 325 (Md. 2008).

Opinions

BATTAGLIA, J.

The Attorney Grievance Commission of Maryland (“Petitioner”), acting through Bar Counsel and pursuant to Maryland Rule 16-751(a),1 filed a petition for disciplinary or remedial action against Respondent, H. Allen Whitehead on December 12, 2006. Bar Counsel alleged that Respondent violated Maryland Rules of Professional Conduct (“MRPC”) 1. 15, governing the safekeeping of property,2 MRPC 8.4(a), [245]*245(b), (c) and (d), governing attorney misconduct,3 Maryland Rule 16-609, prohibiting certain transactions,4 and Sections [246]*24610-306 and 10-307 of the Business Occupations and Professions Article, Maryland Code (1989, 2000 Repl.Vol.), limiting the use of trust money and subjecting those who inappropriately use trust money to disciplinary proceedings.5

In accordance with Maryland Rules 16-752(a) and 16-757(c),6 we referred the petition to Judge Diane O. Leasure of the Circuit Court for Howard County for an evidentiary [247]*247hearing and to make findings of fact and conclusions of law. Judge Leasure held an evidentiary hearing on August 1, 2007; a September 26, 2007 Order of this Court granted an extension for submission of the court’s findings and conclusions. On October 4, 2007, Judge Leasure issued the following Findings of Fact and Proposed Conclusions of Law, in which she found by clear and convincing evidence that Respondent had violated MRPC 1.15 and 8.4(a), (c) and (d), as well as Sections 10-306 and 10-307 of the Business Occupations and Professions Article, Maryland Code (1989, 2000 RepLVol.):7

Findings of Fact

“The relevant facts are, for the most part, not in dispute. Based upon the testimony and evidence presented at the hearing, the Court makes the following findings of fact.

1. The Respondent was admitted to the Bar of the Court of Appeals of Maryland on December 1,1973.

2. The Respondent was admitted to the Bar of the District of Columbia in 1991 and to the Bar of the State of New York in 1997.

3. The Respondent was appointed as the Conservator[8] of the Estate of Reginald V. Grayson, Jr., an adult disabled ward, on September 16, 1999 by the Superior Court of the District of Columbia. Although he had been appointed as a trustee in the past, this was his first appointment as a conservator.

4. By his own admission, the Respondent thought being appointed as a conservator entailed the same obligations that he had when he served as a trustee. He acknowledged that he had not familiarized himself with the applicable [248]*248District of Columbia rules[9] regarding this type of appointment.

5. During the time he served as the Conservator of the estate, the Respondent submitted petitions for the payment of legal fees; no orders authorizing the requested payments were issued.

6. During the period of time that he served as the Conservator for the estate, the Respondent took two actions without obtaining prior court approval: (i) he paid legal fees of $40,200 to himself; and (ii) he made a loan of $600,000 of estate assets to purchase property in New York City that was titled in his name and that of his business partner, Aric Johnson.

7. The property, which was the subject of the real estate transaction, is an eight unit rent-stabilized residential building located in Greenwich Village; the address of the property is 30 Perry Street, New York City, New York 10014. The building was being purchased as an investment property for the Respondent and his business partner. A Note, Mortgage, and Assignment of Rents and Leases secured the loan from the estate. The $600,000 Note was to be paid on a 30-year amortization schedule, but due in 2005 at an interest rate of 7.5%.

8. The subject real estate transaction was disclosed on the various accountings filed by the Respondent in his capacity as the Conservator of the estate.

[249]*2499. The Respondent requested that an outside auditor review the estate’s accounts and he received permission to do so. When the outside auditor questioned the propriety of the Respondent paying himself legal fees from the estate without prior court approval, he repaid the fees to the estate.

10. When the Probate Division of the Superior Court of the District of Columbia raised questions regarding the propriety of the real estate transaction, the Respondent refinanced the property in July 2003 and repaid the Note in full, thus returning the assets, along with interest, to the estate.

11. In October 2003, the Hon. Kaye K. Christian, a judge of the Superior Court of the District of Columbia issued a Show Cause Order against the Respondent. The Show Cause Order was issued in response to allegations that (i) the Respondent paid legal fees to himself without prior court approval; and (ii) that the Respondent entered into a mortgage investment transaction, utilizing $600,000 of the conservatorship estate assets, for the purchase of property located in New York City owned by the Respondent and his business partner, Aric Johnson.

12. The Respondent sent a letter to Judge Christian (dated November 26, 2003) in which he tendered his resignation as the Conservator of the estate. In this letter, the Respondent made the following statements regarding the real estate transaction: (i) he knew that his actions were a violation of Probate Rule 5 (which he admitted he had not familiarized himself with); and (ii) that he now saw how this could be considered a conflict of interest.

13. The Show Cause hearing was held after which Judge Christian entered an Order. In the Order, Judge Christian noted that the Respondent admitted that he paid legal fees in the amount of $40,200 to himself without prior authorization and that he entered into a self-dealing mortgage investment transaction.

14. Judge Christian denied the Respondent’s request to resign as the Conservator and, as a result of his payment of [250]*250legal fees to himself, without prior court approval, removed him as the Conservator of the estate.

15. The District of Columbia Bar Counsel thereafter initiated disciplinary proceedings against the Respondent. The Respondent represented himself during these proceedings and consented to disbarment from the Bar of the District of Columbia.

16. After the Respondent was disbarred in the District of Columbia, the Attorney Grievance Commission of Maryland filed a petition for reciprocal disciplinary action. The Court of Appeals held that the Respondent’s conduct in taking fees from funds held in trust without prior court approval warranted an indefinite suspension rather than disbarment under Maryland law, Attorney Grievance v. Whitehead, 390 Md. 663, 890 A.2d 751 (2006), and indefinitely suspended him from the practice of law with the right to reapply after 18 months.

17. As a result of another reciprocal proceeding in the State of New York, on December 12, 2006, the Respondent was suspended from the practice of law in the State of New York for a period of 18 months.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Attorney Grievance v. Kalarestaghi
Court of Appeals of Maryland, 2023
Attorney Grievance v. Wescott
290 A.3d 1014 (Court of Appeals of Maryland, 2023)
Attorney Grievance v. Taniform
Court of Appeals of Maryland, 2022
Attorney Grievance v. Wemple
Court of Appeals of Maryland, 2022
Attorney Grievance v. O'Neill
Court of Appeals of Maryland, 2022
Attorney Grievance v. Vasiliades
257 A.3d 1061 (Court of Appeals of Maryland, 2021)
Attorney Grievance v. Leatherman
256 A.3d 810 (Court of Appeals of Maryland, 2021)
Attorney Grievance v. Karambelas
248 A.3d 1019 (Court of Appeals of Maryland, 2021)
Attorney Grievance v. Sperling
248 A.3d 224 (Court of Appeals of Maryland, 2021)
Attorney Grievance v. Keating
243 A.3d 520 (Court of Appeals of Maryland, 2020)
Attorney Grievance v. Frank
236 A.3d 603 (Court of Appeals of Maryland, 2020)
Attorney Grievance v. Milton
225 A.3d 415 (Court of Appeals of Maryland, 2020)
Attorney Grievance v. Kaufman
466 Md. 404 (Court of Appeals of Maryland, 2019)
Attorney Grievance v. Sanderson
465 Md. 1 (Court of Appeals of Maryland, 2019)
Attorney Grievance Comm'n of Md. v. Sanderson
213 A.3d 122 (Court of Appeals of Maryland, 2019)
Attorney Grievance Comm'n of Md. v. Conwell
200 A.3d 820 (Court of Appeals of Maryland, 2019)
Attorney Grievance v. Conwell
462 Md. 437 (Court of Appeals of Maryland, 2019)
Attorney Grievance Comm'n of Md. v. Moody
175 A.3d 811 (Court of Appeals of Maryland, 2017)
Attorney Grievance Commission v. Kent
136 A.3d 394 (Court of Appeals of Maryland, 2016)
Attorney Grievance Commission v. Barton
110 A.3d 668 (Court of Appeals of Maryland, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
950 A.2d 798, 405 Md. 240, 2008 Md. LEXIS 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attorney-grievance-commission-v-whitehead-md-2008.