In re Collins

100 A.D.3d 257, 952 N.Y.S.2d 616

This text of 100 A.D.3d 257 (In re Collins) 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 Collins, 100 A.D.3d 257, 952 N.Y.S.2d 616 (N.Y. Ct. App. 2012).

Opinion

OPINION OF THE COURT

Per Curiam.

The Grievance Committee for the Tenth Judicial District (hereinafter the Grievance Committee) served the respondent with a verified petition dated January 4, 2011, containing five charges of professional misconduct. After a hearing, the Special Referee sustained all five charges. The Grievance Committee now moves for an order confirming the report of the Special Referee and imposing such discipline upon the respondent as the Court deems appropriate. The respondent opposes the Grievance Committee’s motion only as to the issue of mitigation and requests that the Court not issue any sanction greater than a public censure.

Charge one alleges that the respondent misappropriated funds entrusted to him as a fiduciary by withdrawing the funds from his attorney trust account for his personal use, in violation of Rules of Professional Conduct (22 NYCRR 1200.0) rule 1.15 (a).

The respondent maintained an attorney trust account at Wachovia Bank entitled “Law Offices of David A. Collins IOLA Trust Account” (No. xxxxxx625847) incident to his practice of law, wherein he deposited fiduciary funds. The respondent also maintained an operating account at Wachovia Bank entitled “Law Offices of David A. Collins” (No. xxxxxx625575).

In or about July 2009, the respondent represented James and Kim Mulcahy in connection with the sale of their Westwood, [259]*259New Jersey property to Michael McGregor and Annick Des Roches. At or about that time, the respondent also represented the Mulcahys in connection with their purchase of property located in Rye, New York.

The contract in connection with the Mulcahy sale was executed by the purchasers on or about June 7, 2009, and by the Mulcahys on or about June 18, 2009. Pursuant to the contract, the purchasers deposited a partial down payment with the respondent, as the sellers’ attorney, in the amount of $15,000, by check dated July 3, 2009. An additional check dated July 22, 2009, in the amount of $1,000, representing the balance of the down payment, was deposited with the respondent by Prudential Adamo Realty, Inc. As of August 4, 2009, the entire down payment of $16,000 had been deposited in the respondent’s attorney trust account.

On or about August 13, 2009, the respondent withdrew $1,500 from his attorney trust account, which constituted his legal fees for representing the Mulcahys in connection with their sale and purchase. At that time, the balance in the respondent’s attorney trust account consisted solely of the $16,000 down payment in connection with the Mulcahys’ sale.

On or about August 16, 2009, the Mulcahys “offered to lend” the respondent $4,000 so that he could “pay a contractor working on his office.” The respondent consented to accept the loan. To effectuate the transaction, the respondent withdrew $3,950 from his attorney trust account on or about August 17, 2009, by check No. 1002. The respondent failed to advise the Mulcahys, in writing, of the desirability of seeking the advice of independent legal counsel with respect to the loan and failed to obtain their informed consent, in writing, to the essential terms of the loan.

The respondent deposited his attorney trust account check No. 1002, in the amount of $3,950, into his business account on August 17, 2009. The respondent’s attorney trust account check No. 1002 was not related to any client matter.

On August 17, 2009, the date the respondent’s attorney trust account check No. 1002 was presented for payment and honored, the balance in the respondent’s attorney trust account was $14,500, comprised solely of the balance of the down payment in connection with the Mulcahys’ sale ($16,000 minus the previous withdrawal of $1,500).

On August 21, 2009, the respondent paid the Mulcahys $4,000 to satisfy the loan.

[260]*260The Mulcahys’ sale closed on August 24, 2009. Prior to that time, the respondent had not received authorization from the purchasers to disburse funds from the down payment in connection with the sale.

Charge two alleges that the respondent commingled personal funds with funds belonging to another person by depositing personal funds into his attorney trust account and using his attorney trust account to pay for personal expenses not related to client matters, in violation of Rules of Professional Conduct (22 NYCRR 1200.0) rule 1.15 (a) and (b).

In addition to the specifications of charge one, it is alleged that on or about August 21, 2009, the respondent received a check from MacFadden Dier Insurance Agency (hereinafter MacFadden Dier) in the amount of $4,000. The respondent deposited the $4,000 he received from MacFadden Dier into his attorney trust account. The $4,000 was not related to any client matter.

On or about August 24, 2009, the respondent issued operating account check No. 1004 in the amount of $1,450, payable to “Law Offices of David A. Collins IOLA Trust Account.” The respondent deposited the check into his attorney trust account. The $1,450 was not related to any client matter.

On or about August 28, 2009, the respondent received a check issued by the Law Offices of Sean Campbell, payable to “David Collins,” in the amount of $500. The respondent deposited the check into his attorney trust account. The check was not related to any client matter.

On or about August 30, 2009, the respondent issued attorney trust account check No. 1006, in the amount of $290, payable to “cash.” The respondent’s attorney trust account check No. 1006 was presented for payment on or about September 30, 2009. At or about that time, the respondent’s attorney trust account check No. 1006 was dishonored, inasmuch as the account had a balance of only $7.96. The respondent’s attorney trust account check No. 1006 was not related to any client matter.

On or about August 31, 2009, the respondent withdrew $500 in cash from his attorney trust account. The withdrawal was not related to any client matter.

On or about September 1, 2009, the respondent withdrew $500 in cash from his attorney trust account. The withdrawal was not related to any client matter.

On or about September 1, 2009, the respondent withdrew an additional $500 in cash from his attorney trust account. The withdrawal was not related to any client matter.

[261]*261On or about September 1, 2009, the respondent issued his attorney trust account check No. 1007 in the amount of $500, payable to “Old Town Hall Operating LLC.” The respondent’s attorney trust account check No. 1007 was not related to any client matter. It was presented for payment and honored on or about September 3, 2009.

On or about September 3, 2009, the respondent withdrew $500 in cash from his attorney trust account. The withdrawal was not related to any client matter.

On or about September 8, 2009, the respondent withdrew $700 in cash from his attorney trust account. The withdrawal was not related to any client matter.

On or about September 16, 2009, the respondent withdrew $300 in cash from his attorney trust account. The withdrawal was not related to any client matter.

Charge three alleges that the respondent issued a check from his attorney trust account made payable to cash and made cash withdrawals from his attorney trust account, in violation of Rules of Professional Conduct (22 NYCRR 1200.0) rule 1.15 (e), based upon the specifications of charges one and two.

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Related

§ 90
New York JUD § 90

Cite This Page — Counsel Stack

Bluebook (online)
100 A.D.3d 257, 952 N.Y.S.2d 616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-collins-nyappdiv-2012.