In re Dick

280 A.D.2d 146, 721 N.Y.S.2d 61, 2001 N.Y. App. Div. LEXIS 1228

This text of 280 A.D.2d 146 (In re Dick) 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 Dick, 280 A.D.2d 146, 721 N.Y.S.2d 61, 2001 N.Y. App. Div. LEXIS 1228 (N.Y. Ct. App. 2001).

Opinion

OPINION OF THE COURT

Per Curiam.

The respondent was served with a petition containing 15 charges of professional misconduct. In his answer, he admitted in part and denied in part the allegations contained in the petition, denied that he was guilty of violating the Disciplinary Rules, and raised several affirmative defenses. The respondent subsequently stipulated to almost all of the factual allegations contained in the petition, with certain amendments and qualifications. Charges One, Four, Seven, Eight, Nine, and Ten were amended during the course of the disciplinary proceeding. After a hearing, the Special Referee sustained all of the charges, except Charge Fifteen. The Grievance Committee moves, and the respondent cross-moves, to confirm in part and disaffirm in part the Special Referee’s report. The respondent also argues that the sanction imposed should be limited to a public censure.

Charge One, as amended, alleged that the respondent failed to properly safeguard, and improperly converted to his own use, funds entrusted to him as a fiduciary, in violation of Code of Professional Responsibility DR 9-102 (a) and (b) (22 NYCRR 1200.46 [a], [b]).

The respondent maintained an attorney escrow account at Citibank identified as the “Judah Dick — IOLA Account.” Before August 1996, he received at least $23,935 on behalf of an individual named Machne Chaim, which represented the proceeds from a sale of real estate. As a fiduciary in possession of client funds, the respondent was required to safeguard those funds in an attorney escrow account. The respondent deposited them into the “Judah Dick AGT account” at the Dime Savings Bank.

Charge Two alleged that the respondent failed to properly safeguard, and improperly converted to his own use, funds entrusted to him as a fiduciary, in violation of Code of Professional Responsibility DR 9-102 (b) (22 NYCRR 1200.46 [b]).

On or about August 13, 1996, the respondent was required to maintain at least $23,935 in his attorney escrow account on behalf of Machne Chaim. On that date, the balance in the respondent’s attorney escrow account was depleted to [148]*148$21,538.84. Also on that date, check number 1977 in the amount of $23,935, which was drawn on the respondent’s escrow account, was returned for insufficient funds.

Charge Three alleged that the respondent failed to properly safeguard, and improperly converted to his own use, funds entrusted to him as a fiduciary, in violation of Code of Professional Responsibility DR 9-102 (b) (22 NYCRR 1200.46 [b]).

On or about March 20, 1996, the respondent deposited $190,000 into his attorney escrow account on behalf of an individual named Wolf. From that date through April 2, 1996, he was required to maintain at least $190,000 in his escrow account on Wolfs behalf. On March 21, 1996, the balance in the respondent’s escrow account was depleted to $189,159.87.

Charge Four, as amended, alleged that the respondent failed to properly safeguard, and improperly converted to his own use, funds entrusted to him as a fiduciary, in violation of Code of Professional Responsibility DR 9-102 (a) and (b) (22 NYCRR 1200.46 [a], [b]).

Before May 2, 1996, the respondent, as a fiduciary, received at least $25,000 on behalf of an individual named Meyer. Initially, he deposited the funds into one of his accounts at the Dime Savings Bank. He subsequently transferred them into his attorney escrow account on May 2, 1996.

Charge Five alleged that the respondent failed to properly safeguard, and improperly converted to his own use, funds entrusted to him as a fiduciary, in violation of Code of Professional Responsibility DR 9-102 (b) (22 NYCRR 1200.46 [b]).

On or about April 16, 1996, the respondent deposited an additional $25,000 into his attorney escrow account on behalf of Meyer. On May 10, 1996, he was required to maintain at least $50,000 in his escrow account on Meyer’s behalf. On that date, the balance in the respondent’s escrow account was depleted to $39,299.28.

Charge Six alleged that the respondent failed to properly safeguard, and improperly converted to his own use, funds entrusted to him as a fiduciary, in violation of Code of Professional Responsibility DR 9-102 (b) (22 NYCRR 1200.46 [b]).

On or about May 1, 1996, the respondent deposited into his attorney escrow account $37,500 on behalf of an individual named Klein. Between May 1 and August 1996, the respondent was required to maintain at least $37,500 in his escrow account on Klein’s behalf. On May 24, 1996, the balance in the respondent’s escrow account was depleted to $34,688.03.

[149]*149Charge Seven, as amended, alleged that the respondent failed to properly safeguard, and improperly converted to his own use, funds entrusted to him as a fiduciary, in violation of Code of Professional Responsibility DR 9-102 (a) and (b) (22 NYCRR 1200.46 [a], [b]).

Before September 11, 1996, the respondent received, as a fiduciary, at least $25,000 on behalf of an individual named Godlewsky. He deposited the funds into his “Judah Dick AGT account” at the Dime Savings Bank and subsequently transferred them into his Citibank IOLA account.

Charge Eight, as amended, alleged that the respondent failed to properly safeguard, and improperly converted to his own use, funds entrusted to him as a fiduciary, in violation of Code of Professional Responsibility DR 9-102 (b) (22 NYCRR 1200.46 [b]).

On or about September 11, 1996, the respondent deposited $25,000 into his attorney escrow account on behalf of Godlewsky, increasing the balance in the account to $32,401.89. On that date, although the respondent was required to maintain a balance of at least $25,000 in his escrow account on Godlewsky’s behalf, the balance in the account was depleted to $5,814.89.

Charge Nine, as amended, alleged that the respondent failed to properly safeguard, and improperly converted to his own use, funds entrusted to him as a fiduciary, in violation of Code of Professional Responsibility DR 9-102 (b) (22 NYCRR 1200.46 [b]).

In or about 1998, the respondent maintained funds on behalf of an individual named Eichenthal in an attorney escrow account at Republic. The funds earned interest while in that account. The respondent failed to disburse the accrued interest to Eichenthal.

Charge Ten, as amended, alleged that the respondent improperly commingled funds entrusted to him as a fiduciary, in violation of Code of Professional Responsibility DR 9-102 (a) (22 NYCRR 1200.46 [a]).

Between January 1 and December 31, 1996, the respondent deposited legal fees that he had earned into his attorney escrow account and failed to withdraw some of those fees. During the same period, funds entrusted to the respondent as a fiduciary were on deposit in his escrow account.

Charge Eleven alleged that the respondent failed to maintain the required records for his attorney escrow account, in viola[150]*150tion of Code of Professional Responsibility DR 9-102 (d) (1) and (2) (22 NYCRR'1200.46 Id] [1], [2]).

The respondent failed to contemporaneously maintain a ledger book or similar record for the aforementioned accounts showing the source of all funds deposited therein, the names of all persons for whom the funds were being held, the amount of such funds, the charges or withdrawals therefrom, and the names of all persons to whom such funds were disbursed.

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Bluebook (online)
280 A.D.2d 146, 721 N.Y.S.2d 61, 2001 N.Y. App. Div. LEXIS 1228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-dick-nyappdiv-2001.