In re Fisher

131 A.D.3d 113, 12 N.Y.S.3d 99

This text of 131 A.D.3d 113 (In re Fisher) 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 Fisher, 131 A.D.3d 113, 12 N.Y.S.3d 99 (N.Y. Ct. App. 2015).

Opinion

OPINION OF THE COURT

Per Curiam.

Respondent Ivan S. Fisher was admitted to the practice of law in the State of New York by the Second Judicial Department on December 23, 1968. At all times relevant to these proceedings, respondent maintained an office for the practice of law within the First Judicial Department.

By order dated March 14, 2013, the United States District Court for the Southern District of New York disbarred respondent for, inter alia, misappropriation and conversion of client funds (Code of Professional Responsibility DR 9-102 [a] [22 NYCRR 1200.46 (a)]; DR 1-102 [a] [4] [22 NYCRR 1200.3 (a) (4)]), which order was affirmed by the Second Circuit Court of Appeals on July 22, 2014 (759 F3d 200 [2014]). The events giving rise to the federal disbarment need to be recounted in some detail in order to give context to the motion and cross motion currently pending before us.

In 2004, Abrahim Raphael retained respondent to represent him in connection with a federal criminal investigation and subsequent indictment concerning his role in the embezzlement of funds from his employer, International Gemological Institute (IGI). On September 13, 2005, Raphael pleaded guilty in the United States District Court for the Southern District of New York to conspiracy to commit money laundering and conspiracy to commit wire fraud (18 USC §§ 371, 1349, 1956 [h]). His sentencing was adjourned for him to, inter alia, make restitution to IGI.

In July 2007, Raphael wired $250,000 to respondent’s operating account for the payment of restitution to IGI. In September 2007, respondent advised Raphael that he was not holding the restitution funds in an escrow account and that to avoid any [115]*115"tax problems” he needed Raphael to sign a letter stating that the $250,000 was a loan to respondent, which Raphael did.

In January 2008, respondent told Raphael that he had spent $50,000 of the restitution funds and requested that Raphael provide additional funds for the restitution. Raphael then borrowed an additional $50,000 which he remitted to respondent. Respondent ultimately only paid $120,000 to IGI for restitution. From March 2008 through September 2009, respondent requested that Raphael’s sentencing be adjourned approximately 15 times for various reasons which included the representation that Raphael was trying to raise the funds necessary to pay restitution as per the plea agreement.

In 2009, Raphael disclosed to James O. Druker, Esq., his counsel in a separate tax matter, that respondent had spent some of the $250,000 which was supposed to have been paid to IGI. In August 2009, Druker substituted respondent as Raphael’s counsel and in September 2009, disclosed respondent’s conduct to Judge Kimba Wood, who was presiding over respondent’s case.

On January 21, 2010, Judge Wood sentenced Raphael to three years probation. In order to meet his restitution obligation, Raphael borrowed an additional $30,000 from his brother and assigned to IGI his claims against respondent and his right to $100,000, which Druker had requested from the Lawyers’ Fund for Client Protection. That same month, after Raphael was sentenced, Judge Wood referred respondent to the Southern District’s Committee on Grievances (Grievance Committee).

In September 2009, Druker also filed a complaint on Raphael’s behalf with the First Department Disciplinary Committee (DDC), which initiated an investigation of respondent’s conduct. During 2010, in connection with the DDC investigation, respondent answered the complaint and was deposed.

In March 2011, the Grievance Committee directed respondent to show cause why it should not impose discipline, based on a statement of six allegations charging respondent with misappropriation, conversion, commingling and improperly entering into a business transaction with a client without required disclosures.

In July 2011, respondent was again deposed by the DDC.

In December 2011, after learning that IGI intended to commence a civil action against him, respondent executed an affi[116]*116davit of confession of judgment in which he swore that Raphael had given him $250,000 to hold in trust for the benefit of IGI for the purpose of restitution which was to be paid over to IGI prior to Raphael’s sentencing. Respondent spent approximately $180,000 of the funds he received from Raphael on personal and business expenses unrelated to Raphael’s case. To date, respondent has not repaid any of these funds.

Also that month, the DDC brought four charges against respondent, one of which (charge 3) was based on Raphael’s complaint, alleging that respondent violated Code of Professional Responsibility DR 5-104 (a) (22 NYCRR 1200.23 [a]) (improper loan transactions with a client). Significantly, the DDC did not charge respondent with misappropriation or conversion of Raphael’s restitution funds. By subsequent stipulation, the DDC inter alia amended the language of charge 3, referring to the $224,000 as “Ra[ph]ael’s funds” to read that “respondent had alréady used, at a minimum, $224,000 of the proceeds of the loan from Raphael for his own personal and/or business purposes” (emphasis added). Respondent admitted to charge 3 as amended by the stipulation, as well as two other charges.

On March 15, 2012, a hearing on sanctions was held before a Referee. The DDC did not call any witnesses but relied solely on respondent’s admissions to the charges in the prehearing stipulation as well as other documentary evidence. Respondent testified on his own behalf in mitigation and called character witnesses. In posthearing memoranda, the DDC argued for a nine-month suspension and respondent urged a public censure.

By report dated October 25, 2012, the Referee sustained the three charges against respondent and recommended that he be suspended for six months.

With respect to the DR 5-104 (a) (22 NYCRR 1200.23 [a]) loan transaction charge (charge 3), the Referee noted that Raphael had not appeared as a witness, nor had the DDC introduced any statement by him. The Referee noted that DDC staff counsel “made clear that Charge Three in no way implies that Respondent ‘stole’ his client’s money” and that charge 3 was “purely a loan issue.” Nevertheless, the Referee found that, as Raphael’s lawyer, respondent “should never have used his client’s good will and money as he did, borrowing entirely for his own temporary solvency and completely abandoning his obligation to serve his client’s best interest at all times” (emphasis added). The Referee further found that respondent’s [117]*117misconduct was mitigated by his health problems and the resulting adverse effects on his practice.

In the midst of the DDC’s proceeding, the federal Grievance Committee continued its proceeding against respondent. By order entered January 24, 2012 (2012 WL 206122 [SD NY, Jan. 24, 2012, No. M-2-238]), it immediately suspended respondent from practice before the Southern District pending final discipline. By order dated February 13, 2012, the United States District Court for the Eastern District of New York immediately suspended respondent based on the Southern District’s interim suspension order.

The matter was thereafter referred to Magistrate Judge Henry Pitman to hear and report. The interim suspension remained in effect.

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Related

In re Farinella
91 A.D.3d 35 (Appellate Division of the Supreme Court of New York, 2011)
Fisher v. Committee on Grievances
759 F.3d 200 (Second Circuit, 2014)
In re Fisher
908 F. Supp. 2d 468 (S.D. New York, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
131 A.D.3d 113, 12 N.Y.S.3d 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-fisher-nyappdiv-2015.