In re Crescenzi

51 A.D.3d 230, 853 N.Y.S.2d 322
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 11, 2008
StatusPublished
Cited by8 cases

This text of 51 A.D.3d 230 (In re Crescenzi) 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 Crescenzi, 51 A.D.3d 230, 853 N.Y.S.2d 322 (N.Y. Ct. App. 2008).

Opinion

OPINION OF THE COURT

Per Curiam.

Respondent Armando A. Crescenzi was admitted to the practice of law in the State of New York by the First Judicial Department on November 20, 1995, under the name Armando Anthony Crescenzi. At all times relevant to this proceeding, respondent maintained an office for the practice of law within the First Judicial Department.

By order entered November 4, 2004, this Court suspended respondent from the practice of law until further order of the Court based upon substantial admissions made under oath and uncontested documentary evidence that, among other things, he improperly used his IOLA account for his personal use (22 NYCRR 603.4 [e] [1] [ii], [iii]; Matter of Crescenzi, 12 AD3d 74 [2004]).

In October 2005, the Committee served respondent with papers charging him with violations of Code of Professional Responsibility DR 1-102 (a) (4) (conduct involving dishonesty, fraud, deceit or misrepresentations), (5) (conduct prejudicial to the administration of justice), (7) (conduct adversely reflecting on one’s fitness to practice law) and DR 9-102 (b) (failure to maintain escrow funds) (22 NYCRR 1200.3, 1200.46). The charges were based on allegations that respondent intentionally converted client funds to his own personal use, submitted an answer to a complaint that contained a knowingly false statement, failed to produce financial records and failed to cooperate with the Committee’s investigation of his professional misconduct.

In a prehearing stipulation, respondent admitted that he intentionally converted a client’s funds, failed to maintain client funds in his escrow account and submitted an answer to the Committee containing a knowingly false statement. A hearing on liability proceeded on the charges of his failure to cooperate and of conduct that adversely reflected on his fitness. Subsequently, the Referee conducted a hearing on March 23, 2006 at which respondent testified, as did two character witnesses and a [232]*232medical expert. The Committee recommended disbarment and respondent requested a three-year suspension with credit for the time he had already been suspended. In a report dated September 30, 2006, the Referee sustained all five charges and recommended a suspension of five years with no retroactivity to his interim suspension.

A Hearing Panel heard oral argument on December 12, 2006. The Committee urged the Panel to confirm the Referee’s findings and disbar respondent. Respondent urged the Panel to consider his mitigation, including his crack addiction, and whatever sanction was decided he requested it be made retroactive to his November 2004 interim suspension.

While the Panel did not contest the Referee’s finding that crack cocaine addiction was an illness, it did not conclude that it was an extremely unusual mitigating circumstance that warranted a suspension instead of disbarment. In reaching this decision, the Panel distinguished the case at bar with Matter of Birnbaum (308 AD2d 180, 183 [1st Dept 2003] [where attorney had an unblemished 30-year career, he fully cooperated with the Departmental Disciplinary Committee, and he paid back “to the penny” the stolen funds before the clients requested the funds]). The Panel found that unlike in Matter of Birnbaum, the client in the instant proceeding demanded the return of his funds and filed a complaint after respondent’s failure to do so, respondent did not cooperate with the Committee’s investigation, and he stipulated to knowingly submitting a false statement to the Committee with respect to the unpaid escrow funds. Moreover, here, respondent appeared at his deposition before the Committee under the influence of cocaine and at the time of the Referee’s hearing, he could only demonstrate that he was drug-free for the previous 50 days, having used drugs intermittently while he was under suspension. In a report dated June 14, 2007, the Panel confirmed the Referee’s findings of fact, disaffirmed her recommended sanction and recommended disbarment.

The Disciplinary Committee now seeks an order confirming the findings of fact and conclusions of law and imposing the sanction of disbarment as set forth in the Hearing Panel’s determination. The Disciplinary Committee argues that disbarment is compelled by the findings of intentional conversion of escrow funds, the factors in aggravation, and the lack of any extremely unusual mitigating factors (Matter of Kirschenbaum, 29 AD3d 96 [1st Dept 2006]; Matter of Ampel, 208 AD2d 57 [1st Dept 1995]; compare Matter of Albanese, 274 AD2d 284 [1st [233]*233Dept 2000] [suspension instead of disbarment for intentional conversion where the incident was isolated and there was a malevolence by the complainant]). In aggravation, the Committee points to respondent’s “pattern” of intentional conversion of escrow funds which he admitted to before the Referee, which was compounded by his dishonesty regarding the real reason for taking the $2,000 and his lack of cooperation with the Committee. In further aggravation, the Committee asserts that respondent lied at his deposition when he said he was not using drugs when the medical records submitted and the medical expert’s hearing testimony and report showed that he had a positive urine test for cocaine the day before his deposition. Moreover, the Committee contends that respondent’s factors in mitigation, i.e., his good reputation, restitution, lack of a disciplinary history and his contrition, do not constitute extraordinary extenuating circumstances for purposes of avoiding disbarment.

The Committee points out that within this Judicial Department in order for drug addiction or alcohol abuse to constitute mitigation, it must be established that the addiction was causally linked to the misconduct and only in the most extreme cases, such as dementia due to cocaine abuse, does drug abuse mitigate the sanction in cases involving theft of client funds or dishonesty (Matter of Fishbein, 167 AD2d 85 [1st Dept 1991] [attorney avoided disbarment where there was proof that the cocaine and alcohol abuse was a contributing cause of the conversion of approximately $1,200, and that he remained drug free]; Matter of Winston, 137 AD2d 385 [1st Dept 1988] [conversion of $12,500 was directly caused by mental infirmity and psychotic state from drug use, and where attorney was drug free, sanction reduced to a three-year suspension]).

The Committee argues that in this matter, respondent has failed to meet the strict standard of causation to merit mitigation on the grounds of his drug addiction. While the medical expert testified that respondent’s heavy drug use during 2002-2003 and his personal problems “impaired his judgment” and “contributed to his mishandling of client funds,” the Committee notes that respondent demonstrated rational thinking at the time of his conversion based upon his admission that he chose that particular client’s funds to convert because he knew he would have the longest period of time to replace the funds. Finally, as respondent’s active drug use continued during the Committee’s investigation and did not allegedly end until he entered Intercare in early February 2006, the Committee as[234]*234serts that this factor distinguishes this case from those in which drug addiction mitigated the sanction (Fishbein, supra; Winston, supra).

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

Related

Matter of Babalola
139 A.D.3d 61 (Appellate Division of the Supreme Court of New York, 2016)
In re Katz
109 A.D.3d 143 (Appellate Division of the Supreme Court of New York, 2013)
In re Kennedy
99 A.D.3d 75 (Appellate Division of the Supreme Court of New York, 2012)
In re Ligos
75 A.D.3d 78 (Appellate Division of the Supreme Court of New York, 2010)
In Re Belz
258 S.W.3d 38 (Supreme Court of Missouri, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
51 A.D.3d 230, 853 N.Y.S.2d 322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-crescenzi-nyappdiv-2008.