In Re Charles R. JOINER

209 So. 3d 718, 2015 La. LEXIS 2539
CourtSupreme Court of Louisiana
DecidedDecember 8, 2015
Docket2015-B -0959
StatusPublished

This text of 209 So. 3d 718 (In Re Charles R. JOINER) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Charles R. JOINER, 209 So. 3d 718, 2015 La. LEXIS 2539 (La. 2015).

Opinions

PER CURIAM.

I,This disciplinary matter arises from formal charges filed by the Office of Disciplinary Counsel (“ODC”) against respondent, Charles R. Joiner, an attorney licensed to practice law in Louisiana.

UNDERLYING FACTS

In February 2008, the ODC received a disciplinary complaint filed by Larry and [720]*720Jeri Lynn Carroll. Mr. Carroll had retained respondent to represent him in a claim for damages arising out of an automobile accident. When the claim was settled in June 2007, respondent withheld funds from the settlement proceeds to pay Mr. Carroll’s medical providers; however, according to the complaint, the Carrolls received collection notices months later indicating that the medical providers had not been paid.

In March 2008, respondent filed a response to the Carrolls’ complaint. He indicated that he was unaware of the problems the Carrolls were having with the medical providers, but that having been informed of such, his secretary conducted an investigation and learned the original checks issued in June 2007 had never been negotiated. Respondent further indicated that replacement checks were issued to the medical providers and that his secretary later confirmed with each medical provider that the replacement check had been received.

|2Two months later, in May 2008, after respondent was served with a subpoena in connection with the ODC’s investigation of the complaint filed by the Carrolls, respondent’s secretary, Lisa McBride, confessed that she had been embezzling money from him since 2003. She also acknowledged that she had deposited client funds into respondent’s operating account, including Mr. Carroll’s settlement funds. Respondent terminated Ms. McBride’s employment and reported her to the police. Although Ms. McBride was unsure exactly how much money she had taken from respondent over the years, she was able to obtain a loan from a relative and made restitution to respondent in the amount of $39,312.35. Respondent directed that these funds be disbursed as follows: 1) $9,700 to be deposited into his operating account, and 2) $10,000 to be deposited into his personal bank account. The remaining funds, $19,612.35, were deposited into respondent’s client trust account. At the time of these disbursements in mid-May 2008, respondent had not obtained any audit of either his operating or client trust accounts.

After depositing Ms. McBride’s funds, respondent retained his CPA, George Griggs, to audit his trust account for a five-year period. Respondent did not request that Mr. Griggs audit his operating account. On July 18, 2008, Mr. Griggs provided respondent with a report indicating that only three client settlements had not been fully disbursed as of that date, “as the funds were to be held awaiting Medicare payback figures.” Mr. Griggs’ report also indicated that the balance in the trust account, as of that date, should have been $22,330.96. Instead, after the deposit of Ms. McBride’s restitution check, the balance in the trust account was $19,612.35, which left a shortfall of $2,718.61. Upon learning of the shortfall from Mr. Griggs, respondent immediately deposited this amount into his trust account using his personal funds.

| sIn January 2009, respondent gave a sworn statement to the ODC in which he related how he had come to learn of Ms. McBride’s theft. He also testified that he had obtained records of both his client trust account and his operating account from his bank; however, he stated that he had not turned over all of these records to Mr. Griggs to complete an audit of the operating account because he had obtained the records primarily for the purpose of the criminal prosecution of Ms. McBride. Respondent also testified that he had not turned over the operating account records because “when all the bank records are in it may appear that I owe [Ms. McBride] money.”

[721]*721During the January 2009 sworn statement the ODC requested that respondent provide all of his banking records for a five-year period. Respondent was cooperative in complying with the ODC’s request.

In January 2011, respondent gave a second sworn statement to the ODC. By this time, the ODC’s internal auditor had reviewed respondent’s bank records with a focus on the disbursements that were made in the personal injury cases handled by respondent during the 2008-2008 time frame. The auditor made particular note of the following cases:

1. Beatrice Reeves — Case settled in March 2003 for $75,000; the sum of $28,579.32 withheld from the settlement to pay Ms. Reeves’ medical providers.

2. William and Johnnie Thomas — Cases settled in March 2004 for a total of $19,634.75; a total of $9,133.75 withheld from the settlements to pay Mr. and Mrs. Thomas’ medical providers.

3. Syble Evans — Case settled in September 2007 for $15,000, with settlement funds initially deposited into respondent’s operating account; the sum of $10,015.50 withheld from the settlement to pay Ms. Evans’ medical providers.

|4In these cases, the auditor found that respondent still had client funds in his trust account, notwithstanding that the clients’ cases had been settled for many years. Asked about these cases during the 2011 sworn statement, respondent testified that these were. “Medicare cases” and that he believed Ms. McBride was “stealing the bulk of the money from” these funds. He testified that he had since “restored the entirety of what I was advised should’ve been held in there from the beginning,” but he acknowledged that he had not been in contact with Medicare to determine whether there would be any claim on the funds. At the urging of the ODC, respondent committed to doing so promptly, and to refund the funds to his clients if there was no claim by Medicare.

In April 2014, the ODC retained the services of CPA Jeffrey Aucoin to audit respondent’s trust and operating accounts. Mr. Aucoin reviewed respondent’s trust account bank statements for the years 2003 through 2008. He also audited respondent’s operating account for the years 2007 and 2008. His June 2, 2014 audit report of respondent’s trust account revealed that, on February 22, 2008 (the date of the filing of the complaint against respondent), the balance in the account should have been at least $34,217.09. Instead, the actual balance in the trust account on this date was $188.61. Four of respondent’s clients were impacted by the shortfall: Beatrice Reeves ($13,276.35), William and Johnnie Thomas ($9,133.75), Syble Evans ($9,870.14), and John Griggs ($1,936.85).1

Respondent did not make Ms. Reeves whole until disbursing the remainder of her funds in .January 2011, November 2011, and June 2012. Respondent did not make Mr. and Mrs. Thomas whole until disbursing the remainder of their funds in December 2011. Respondent did not make Ms. Evans whole until disbursing the remainder of her funds in January 2011, May 2012, and June 2012. Mr. Griggs was not made whole until January 2011.

^DISCIPLINARY PROCEEDINGS

In November 2013, the ODC filed formal charges against respondent, alleging that his conduct as set forth above violated the following provisions of the Rules of Profes[722]*722sional Conduct: Rules 1.15 (safekeeping property of clients or third persons), 5.3(a)(b) (failure to properly supervise a non-lawyer assistant), and 8.4(a) (violation of the Rules of Professional Conduct). Respondent, through counsel, answered the formal charges, essentially denying any misconduct.

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Bluebook (online)
209 So. 3d 718, 2015 La. LEXIS 2539, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-charles-r-joiner-la-2015.