Disciplinary Counsel v. Margolis

870 N.E.2d 1158, 114 Ohio St. 3d 165
CourtOhio Supreme Court
DecidedJuly 18, 2007
DocketNo. 2006-2331
StatusPublished
Cited by12 cases

This text of 870 N.E.2d 1158 (Disciplinary Counsel v. Margolis) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Disciplinary Counsel v. Margolis, 870 N.E.2d 1158, 114 Ohio St. 3d 165 (Ohio 2007).

Opinion

Per Curiam.

{¶ 1} Respondent, Loren Jonathan Margolis of Cleveland, Ohio, Attorney Registration No. 0007957, was admitted to the practice of law in Ohio in 1983. On August 2, 2005, we suspended respondent’s license to practice for an interim period pursuant to Gov.Bar R. V(5)(A)(4) upon receiving notice of his felony convictions. In re Margolis, 106 Ohio St.3d 1472, 2005-Ohio-3914, 832 N.E.2d 57.

{¶ 2} The Board of Commissioners on Grievances and Discipline recommends that we now suspend respondent from practice for two years based on findings that he has been convicted on two counts of conspiracy to restrain trade in violation of Section 1, Title 15, U.S.Code (the Sherman Antitrust Act) and has thereby violated DR 1 — 102(A)(4) (prohibiting conduct involving fraud, deceit, dishonesty, or misrepresentation) and 1-102(A)(6) (prohibiting conduct that adversely reflects on a lawyer’s fitness to practice law). Respondent objects to the board’s recommendation, arguing that he should be credited for the time his license has already been under suspension. On review, we find the cited violations of the Code of Professional Responsibility, overrule respondent’s objection to the board’s recommendation, and hold that the recommended sanction is appropriate.

{¶ 3} Relator, Disciplinary Counsel, and respondent stipulated to the facts and misconduct alleged in relator’s complaint. After setting a hearing date to allow for respondent’s release from the federal penal system, a three-member panel of the board heard the cause on August 10, 2006. The panel made findings of fact and conclusions of law and a recommendation, all of which the board adopted.

Misconduct

{¶ 4} A federal indictment charged respondent and his father-in-law with violations of the antitrust laws, alleging that they, in conspiracy with others in the [166]*166scrap-metal industry, had employed noncompetitive bidding and pricing practices to buy scrap metal for M. Weingold & Company (“the Weingold Company”), a business owned and operated by respondent’s father-in-law.

{¶ 5} Respondent began working for the Weingold Company in 1989. He had no experience in the scrap-metal industry when hired, but he was a licensed real estate broker and had practiced real estate law, developing land through syndication and limited partnerships and acting as bond counsel, for six years beforehand. Respondent learned the business from his father-in-law, working as a company buyer and salesperson and overseeing operations while his father-in-law lived in Florida.

{¶ 6} Respondent was indicted on January 15, 2004, and he later agreed to plead guilty to the two antitrust crimes. Respondent cooperated in the government’s prosecution of other defendants, and in April 2005, he reported his convictions to relator. The United States District Court, Northern Division, sentenced respondent on May 11, 2005, to five months in prison and five months in home confinement with electronic monitoring. The district court also fined respondent $700,000, ordered him to pay a special assessment of $200, and further ordered that he serve one year under supervised release.

{¶ 7} The indictment followed a long investigation that began at least as early as 1997 and of which respondent claimed to have no notice prior to March 2000. The indictment charged that from 1993 through 1999, respondent and his father-in-law conspired with other buyers to suppress and restrain competition by allocating among themselves the scrap-metal suppliers in Northeast Ohio and coordinating their bids for purchase so that none of the conspirators would take each others’ suppliers. Through a process of complementary bidding and pricing, the conspirators denied suppliers in the scrap-metal industry the benefits of free and unfettered competition.

{¶ 8} Respondent completed his incarceration on December 23, 2005. He has paid all fines and assessments as ordered by the district court. On June 5, 2006, the court granted respondent’s motion to terminate supervised release.

{¶ 9} Respondent’s illegal activity and convictions constitute violations of DR 1-102(A)(4) and (6).

Sanction

{¶ 10} When imposing sanctions for attorney misconduct, we consider the duties violated, the actual or potential injury caused, the attorney’s mental state, and sanctions imposed in similar cases. Stark Cty. Bar Assn. v. Buttacavoli, 96 Ohio St.3d 424, 2002-Ohio-4743, 775 N.E.2d 818, ¶ 16. Before making a final determination, we also weigh evidence of the aggravating and mitigating factors [167]*167listed in Section 10 of the Rules and Regulations Governing Procedure on Complaints and Hearings Before the Board of Commissioners on Grievances and Discipline (“BCGD Proc.Reg.”). Cleveland Bar Assn. v. Glatki (2000), 88 Ohio St.3d 381, 384, 726 N.E.2d 993.

{¶ 11} Respondent violated duties to the legal system and the general public by failing to conduct himself within the bounds of the law and to act in accordance with the highest standards of honesty and integrity. Respondent did not compromise any client’s interest, but his misconduct financially harmed Ohio scrap-metal suppliers for years and affected “somewhere between $37,500,000 and $100,000,000” in bid rigging, according to the federal prosecutor at the sentencing hearing. His part in the underlying criminal conspiracy also manifests an intentional violation of the Disciplinary Rules.

{¶ 12} As for sanction^ imposed in similar cases, the panel and board cited Cincinnati Bar Assn. v. Hennekes, 110 Ohio St.3d 108, 2006-Ohio-3669, 850 N.E.2d 1201, in which we suspended a lawyer’s license for two years because he had been convicted of a felony offense for conspiring to distribute more than five kilograms of cocaine. We rejected the board recommendation to grant credit for the lawyer’s earlier interim suspension as too lenient, observing that other lawyers had been permanently disbarred for violations of DR 1-102 that resulted in felony convictions. See, e.g., Disciplinary Counsel v. Gallagher (1998), 82 Ohio St.3d 51, 693 N.E.2d 1078, and Toledo Bar Assn. v. Neller, 98 Ohio St.3d 314, 2003-Ohio-774, 784 N.E.2d 689. We did not, however, disbar the lawyer in Hennekes. Based on the strength of the lawyer’s mitigating evidence, including that he committed his misconduct by trying to help a close friend and had never possessed the cocaine or had any financial or other interest in the drug sale, that he had no prior record of professional discipline, that he deeply regretted his misconduct, and that he had made full and free disclosure during the disciplinary process, we concluded that the appropriate sanction was the two-year suspension without any retroactive credit.

{¶ 13} Respondent disputes the applicability of Hennekes, arguing that his conspiracy has little in common with a conspiracy to possess and distribute over ten pounds of cocaine. He also insists that the panel and board wrongly found that he did not accept responsibility for his misconduct, an aggravating factor under BCGD Proc.Reg. 10(B)(1)(g), and that they did not give sufficient weight to the mitigating evidence of his character and reputation, see BCGD Proc.Reg. 10(B)(2)(e).

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Cite This Page — Counsel Stack

Bluebook (online)
870 N.E.2d 1158, 114 Ohio St. 3d 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/disciplinary-counsel-v-margolis-ohio-2007.