In re Butin

301 A.D.2d 193, 750 N.Y.S.2d 619, 2002 N.Y. App. Div. LEXIS 11242

This text of 301 A.D.2d 193 (In re Butin) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Butin, 301 A.D.2d 193, 750 N.Y.S.2d 619, 2002 N.Y. App. Div. LEXIS 11242 (N.Y. Ct. App. 2002).

Opinion

OPINION OF THE COURT

Per Curiam.

The petitioner, Grievance Committee for the Tenth Judicial District, served the respondent with a petition dated April 16, 2001, containing 11 charges of professional misconduct. After several days of hearings, the Special Referee sustained all 11 charges. The petitioner now moves to confirm the Special Referee’s report and to impose such discipline as the Court deems just and proper. The respondent cross-moves, inter alia, to disaffirm the Special Referee’s report or, in the alternative, to confirm so much of the Special Referee’s report as finds, in mitigation, the respondent’s character evidence “impressive” and to be “given careful consideration by the Court when considering what sanctions, if any, should be imposed on respondent,” and holding in abeyance any final order of discipline pending a further mitigation hearing or hearings before the Special Referee. In the event the Court sustains the Special Referee’s findings, the respondent asks that the Court limit the sanction imposed to a censure or a term suspension.

Charges One through Four are predicated upon the respondent’s conduct regarding his dealings with Marie Edelman.

In July 1996, octogenarian Marie Edelman and her closest friend, Martha Reifforth, retained the respondent to assist in managing Edelman’s assets. In January 1998, the respondent began transferring funds from two separate Chase Bank accounts, entitled Marie Edelman High Yield Savings Account and Marie Edelman Revocable Trust Account, respectively, by presenting transfer advices presigned in blank by either Edelman or Reifforth. The respondent induced Reifforth to sign the blank transfer advices with the assurance that such actions were reasonable and necessary for Edelman’s benefit. He deposited those funds into his own professional account at Chase.

From January 1998 through January 1999, the respondent transferred a total of $45,000 from Edelman’s High Yield Savings Account in five separate transactions and $37,000 from her Revocable Trust Account in 10 separate transactions. He deposited all of those funds into his own professional account.

In January 1999, the balance in the respondent’s professional account was reduced to $38,036.60 even though no disbursements had been made on behalf of Edelman.

[195]*195From February 1999 through May 1999, the respondent transferred an additional $32,000 from Edelman’s High Yield Savings Account and $30,300 from her Revocable Trust Account into his own professional account in 11 separate transactions. The total amount transferred from Edelman’s two accounts to the respondent’s professional account between January 1998 and May 1999 was $144,300.

In July 1999, the balance in the respondent’s attorney professional account was $30,871.35 although no disbursements had been made on behalf of Marie Edelman. Reifforth discharged the respondent in July 1999 and retained Harriette M. Steinberg, Esq., to represent Edelman. Efforts to obtain an accounting from the respondent for money held by him on behalf of Ms. Edelman were unsuccessful.

On August 10, 1999, Reifforth moved in the Supreme Court, Kings County, for the appointment of a special guardian for Edelman and to enjoin the respondent from having any further access to Edelman’s bank accounts. At a hearing before Justice Scholnick on September 13, 1999, the respondent testified that a portion of the funds transferred from the Edelman accounts to his attorney professional account were used for the payment of legal fees. The respondent had never rendered a bill for legal services and estimated that he earned between $25,000 and $75,000.

Although Justice Scholnick found Edelman to be incapacitated within the meaning of Mental Hygiene Law article 81, he found that a guardian was unnecessary inasmuch as sufficient mechanisms were in place to permit Reifforth to care for Edelman. The court appointed Harvey Greenberg as special guardian to continue his investigation of Edelman’s accounts and trusts and stayed all powers granted to the respondent pursuant to a power of attorney given him by Edelman.

Although Edelman died on July 6, 2000, the respondent had not, as of the date of the petition, provided an accounting of the funds held on her behalf or returned to the estate any of the funds in his possession.

Charge One alleges that the respondent failed to account for funds entrusted to him by Edelman, and converted those funds to a use other than that for which they were intended, in violation of Code of Professional Responsibility DR 9-102 (a) (22 NYCRR 1200.46 [a]).

Charge Two alleges that the respondent failed to maintain complete records of client funds in his possession and failed to [196]*196promptly pay or deliver those funds to the client or a third person, in violation of Code of Professional Responsibility DR 9-102 (c) (3) and (4) (22 NYCRR 1200.46 [c] [3], [4]).

Charge Three alleges that the respondent engaged in conduct involving dishonesty, deceit, and misrepresentation, in violation of Code of Professional Responsibility DR 1-102 (a) (4) (22 NYCRR 1200.3 [a] [4]).

Charge Four alleges that the respondent failed to comply with SCPA 2310 and 2311, and engaged in conduct adversely reflecting on his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (a) (7) (22 NYCRR 1200.3 [a] [7]).

Charges Five, Six, and Eight are predicated upon the respondent’s conduct with respect to his dealings with Edith Strauss.

In or about 1995, the respondent was retained by Ruth Roth-stein, who sought to be appointed as guardian for her sister, Edith Strauss. Rothstein paid the respondent a $2,000 fee.

Rothstein was appointed guardian for Strauss on February 26, 1996. The respondent established a guardianship bank account for Strauss and maintained sole control of all records, including monthly statements and negotiated checks. He created a second guardianship account, with himself as signatory, without court approval. From that account, the respondent issued checks payable to himself in payment of additional legal fees in the sum of $2,750, without prior court approval, in violation of SCPA 2310 and 2311.

The respondent failed to file required annual accounts with the court which appointed Rothstein as guardian. In 1997, the court-appointed reviewer of guardian accounts in Queens County, Gary M. Dar che, Esq., brought an application to remove Ms. Rothstein as guardian for Ms. Strauss based upon her failure to file an account. That motion was withdrawn when the respondent filed the account.

Upon the respondent’s failure to file the account for 1998 and 1999, Darche again moved to remove Rothstein as guardian. Rothstein explained that her failure to file was due to the respondent’s possession and control of all bank records relating to Strauss.

The respondent failed to attend a scheduled hearing before the Honorable Phyllis O. Flug on July 25 and July 26, 2000, despite being contacted by the court and being directed to appear. On August 15, 2000, Justice Flug conducted a sane[197]*197tions hearing at which the respondent was fined $250 for failing to appear.

Rothstein filed accountings for 1998 and 1999 after obtaining from the bank copies of all records in the respondent’s possession.

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Bluebook (online)
301 A.D.2d 193, 750 N.Y.S.2d 619, 2002 N.Y. App. Div. LEXIS 11242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-butin-nyappdiv-2002.