In Re Disciplinary Action Against Strom

551 N.W.2d 715, 1996 Minn. LEXIS 441, 1996 WL 400295
CourtSupreme Court of Minnesota
DecidedJuly 18, 1996
DocketC4-94-1551
StatusPublished
Cited by2 cases

This text of 551 N.W.2d 715 (In Re Disciplinary Action Against Strom) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Disciplinary Action Against Strom, 551 N.W.2d 715, 1996 Minn. LEXIS 441, 1996 WL 400295 (Mich. 1996).

Opinion

OPINION

PER CURIAM.

The Director of the Office of Lawyers Professional Responsibility filed a petition, dated April 27, 1994, charging respondent, Warren Elof Strom, with one count of unprofessional conduct warranting public discipline. The petition alleges eight instances of misappropriation of the funds of clients and others for whom respondent had agreed to act in a fiduciary capacity. Respondent never answered the petition, and the Director’s attempts to contact him and have him served at his home were unsuccessful. On July 21, 1994, the Director applied for an order suspending respondent from the practice of law pursuant to Rule 12(c)(1), Rules on Lawyers Professional Responsibility (RLPR). 1 We *716 suspended respondent, allowing him one year to move for vacation of the order of suspension and for leave to answer the disciplinary petition. Respondent did not so move, nor did he comply with Rule 26, RLPR, requiring that he notify clients and tribunals that he was suspended. On March 14, 1996, after one year had passed since respondent’s suspension, the Director petitioned, under Rule 12(c)(2), RLPR, for an order to show cause why appropriate disciplinary action should not be taken against respondent. We granted the Director’s petition and issued an order that respondent appear before us on June 6, 1996, to show cause why we should not discipline him. Respondent did not appear, and the issue before us now is what discipline to impose. 2

Respondent was admitted to practice law in Minnesota on June 5, 1970, and in Illinois on November 15, 1971. Respondent’s last known address is in Maple Park, Illinois, and he has apparently never practiced in Minnesota. He is voluntarily on restricted Continuing Legal Education status in Minnesota, and since October 1, 1988, he has been suspended for nonpayment of the attorney registration fee.

On June 15, 1993, while a six-count complaint was pending against him before the Illinois Attorney Registration and Disciplinary Commission Hearing Board, and two other charges were under investigation by the Illinois Commission Administrator, respondent moved the Supreme Court of Illinois to strike his name from the Master Roll of Attorneys licensed to practice in Illinois. See Ill. Sup.Ct. Rule 762(a) (setting out procedure for disbarment on consent). On June 24, 1993, pursuant to Rule 762(a), the Administrator of the Illinois Commission filed a statement of charges against respondent setting forth a description of the evidence that would be presented if the cause proceeded to hearing and the findings of misconduct the evidence would support. After receiving the statement of charges, respondent filed an affidavit with the Illinois Supreme Court acknowledging that if the “cause proceeded to hearing on the charges set forth in the Administrator’s statement, the Administrator would present the evidence described in the statement, and that evidence would clearly and convincingly establish the facts and conclusions of misconduct set forth in the statement.”

The following allegations were the subject of the Illinois complaint:

1. In December 1986, respondent received $4,000 for his clients, K.G. and D.G., whom he represented in their claims against a homeowners’ association. Without client authorization, he used $2,700 of the money for his own business and personal purposes, causing the first check he wrote to his clients for their share of the settlement to be returned for insufficient funds.

2. In early 1987, respondent used for his own business or personal purposes $95,000 of $100,000 that his client, P.J.C., had given him as earnest money for the purchase of a bank. Later, he returned the earnest money to P.J.C., but the first check that he drew on his law firm’s trust account was twice not honored because of insufficient funds. Respondent then drew another check on the same account and subsequently deposited three unrelated cheeks in order to cover the check to P.J.C.

3. In 1987, respondent used for his own business or personal purposes $29,000 of $30,000 he received from purchasers of real property from his client F.B., and he overdrew his law firm’s trust account. Part of *717 the money was used to repay P. J.C.’s earnest money.

4. When F.B. closed on the property sale, the purchasers delivered a cheek for over $79,000 to respondent, which he deposited into his firm’s trust account. He paid $30,-000 to F.B. and within one week had used over $45,000 for his own business or personal purposes without F.B.’s authorization. Before he finally paid her with a check backed by sufficient funds, his first $29,000 check to F.B. was returned for insufficient funds.

5. On April 1, 1987, in the course of representing Boncosky & Company in the sale of real estate, respondent received a check from Century Title Company for more than $55,000 for the sale. He deposited the cheek into his firm trust account, and by April 15, had used all of the funds for his own business or personal purposes and overdrawn the account. Two weeks later he wrote a check to Boncosky for the amount of the sale proceeds, and then deposited enough of his own personal funds to cover the cheek.

6. In January 1988, respondent’s clients, M.R. and G.R., delivered $77,000 for the purchase of real estate in Wisconsin. He deposited the check into his firm’s trust account and within two weeks had used over $68,000 of it for his own business or personal purposes without authorization from his clients. He then drew a trust account check payable to Century 21 Real Estate, which was not honored because of insufficient funds the first time it was presented, but was subsequently paid.

In addition to the above charges that were the subject of the complaint, the Illinois Administrator’s statement included notice of ongoing investigations into two other instances of misappropriation of substantial sums of money. In the first instance respondent represented M.R. in the purchase of real property from L.D. Respondent deposited a $200,-000 check he received from M.R. into an account that he used for his own business and personal needs and was neither a trust nor an escrow account. Respondent expended for his own business or personal purposes more than $195,000 of the funds within one week and approximately one month later drew a $200,000 check payable to L.D. on his law office trust account, although the trust account contained less than $5,000, and none of the money in it belonged to either M.R. or L.D. After the check was dishonored because of insufficient funds, respondent paid L.D. with a $150,000 cashier’s check and a $50,000 check drawn on his trust account.

The second investigation related to respondent’s conversion of $60,000 in the course of representing Boncosky Oil Company in the purchase of real property from L.N. and E.N. Respondent received a $60,000 check from Boncosky Oil, which was to be placed in escrow pending final approval of the sale. Rather than deposit the check into a trust or escrow account, respondent cashed the check and used all of the money for his own business or personal purposes. Boncosky Oil later requested that respondent provide it with the account number and the name of the institution that was holding the money.

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Related

In Re Disciplinary Action Against Davis
585 N.W.2d 373 (Supreme Court of Minnesota, 1998)
In Re Petition for Disciplinary Action Against Roff
581 N.W.2d 32 (Supreme Court of Minnesota, 1998)

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Bluebook (online)
551 N.W.2d 715, 1996 Minn. LEXIS 441, 1996 WL 400295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-disciplinary-action-against-strom-minn-1996.