In re Goldstein

60 A.D.3d 14, 871 N.Y.S.2d 246

Opinion

OPINION OF THE COURT

Per Curiam.

The Grievance Committee for the Ninth Judicial District (hereinafter Grievance Committee) served the respondent with a verified petition and a supplemental petition alleging, all together, 29 charges of professional misconduct. After a preliminary conference and a hearing, Special Referee Krane sustained charges 2, 3, 4, 5, 6, 8, 9, 15, 16, 17, 19, 21, 22, 26, 27, 28 and 29, sustained in part and dismissed in part charges 10, 11, 12 and 14, and dismissed in their entirety charges 1, 7, 13, 18, 20, 23, 24 and 25. The Grievance Committee now moves to confirm the Special Referee’s report insofar as it sustained the various charges, to disaffirm the report insofar as it dismissed other charges, in whole or in part, and to impose such discipline as the Court deems just and proper. The respondent submitted an affirmation in which he opposes confirmation of the Special Referee’s report, seeks dismissal of the charges sustained, and opposes the imposition of any discipline.

Charges 1 through 9 and 25 through 29 relate to the respondent’s handling of client and third-party funds in his escrow account. The remaining charges in the petition, charges 10 through 24, relate to the respondent’s conduct in the so-called Shockome litigation (see Matter of Shockome v Shockome, 30 AD3d 528 [2006]), a domestic relations and child custody matter before the Honorable Damian J. Amodeo in the Family Court, as well as the Supreme Court, Dutchess County.

[16]*16Charges 1 through 9 and 25 through 29

The respondent’s primary legal practice was in representing tenants for Cluster Housing Resource Center (hereinafter Cluster), a not-for-profit housing resource center, and North Yonkers Preservation and Development. In his role as counsel for Cluster, the respondent deposited client funds into his master escrow account at JPMorgan Chase or into a client subaccount for Cluster which covered deposits for all tenants on whose behalf Cluster was working.

Charge 1 alleges that the respondent engaged in conduct that adversely reflects on his fitness to practice law by converting funds and/or failing to maintain a duly constituted escrow account in breach of his fiduciary duty, in violation of Code of Professional Responsibility DR 1-102 (a) (7) (22 NYCRR 1200.3 [a] [7]). The respondent maintained a master account at JP-Morgan Chase and a subaccount for Cluster. With respect to the subaccount for Cluster, between January 27, 2003 and July 29, 2003, the respondent made various deposits and disbursements or transfers of funds relating to a landlord-tenant matter known as Cluster-14 Mulberry Street. During this time period, the respondent also had on deposit in the subaccount for Cluster funds relating to other landlord-tenant matters. When making his disbursements or transfers of funds on behalf of Cluster-14 Mulberry Street, the respondent failed to ensure that he had adequate funds on deposit for Cluster-14 Mulberry Street, such that on various dates negative balances resulted.

Charge 2 alleges that the respondent engaged in conduct that adversely reflects on his fitness to practice law by converting funds and/or failing to maintain a duly constituted escrow account in breach of his fiduciary duty, in violation of Code of Professional Responsibility DR 1-102 (a) (7) (22 NYCRR 1200.3 [a] [7]), in connection with funds he deposited into the Cluster subaccount relating to a landlord-tenant matter known as 98 School Street. He disbursed or transferred funds relating to 98 School Street without ensuring that he had adequate funds on deposit for that entity. Specifically, on March 19, 2003, he disbursed or transferred $2,310 to 98 School Street from his Cluster subaccount, when he had on deposit only $1,540 for 98 School Street. On March 27, 2003, he deposited $770 relating to 98 School Street into his Cluster subaccount.

Charge 3 alleges that the respondent engaged in conduct that adversely reflects on his fitness to practice law by converting funds and/or failing to maintain a duly constituted escrow ac[17]*17count in breach of his fiduciary duty, in violation of Code of Professional Responsibility DR 1-102 (a) (7) (22 NYCRR 1200.3 [a] [7]), in connection with funds he deposited into the Cluster subaccount relating to a landlord-tenant matter known as Bruce. He disbursed or transferred funds relating to Bruce without ensuring that he had adequate funds on deposit for that entity. Specifically, between June 18, 2003 and June 20, 2003, he disbursed or transferred $1,147 relating to Bruce from his Cluster subaccount when he did not have sufficient funds on deposit relating to Bruce in his Cluster subaccount.

Charge 4 alleges that the respondent engaged in conduct that adversely reflects on his fitness to practice law by converting funds and/or failing to maintain a duly constituted escrow account in breach of his fiduciary duty, in violation of Code of Professional Responsibility DR 1-102 (a) (7) (22 NYCRR 1200.3 [a] [7]), in connection with funds he deposited into the Cluster subaccount relating to a landlord-tenant matter known as Collado. He disbursed or transferred funds relating to Collado without ensuring that he had adequate funds on deposit for that entity. Specifically, on or about August 11, 2004, he disbursed or transferred $2,265.70 relating to Collado from his Cluster subaccount when he had at the time only $1,133 on deposit for Collado. On or about August 23, 2004, he deposited $1,133 relating to Collado into his Cluster subaccount.

Charge 5 alleges that the respondent converted client funds in breach of his fiduciary duty, in violation of Code of Professional Responsibility DR 9-102 (a) (22 NYCRR 1200.46 [a]), by failing to disburse the interest earned on the Cluster subaccount. Between December 31, 2003 and December 23, 2004, approximately $167.16 in interest was earned on the client funds on deposit. The respondent testified that the interest accumulated to approximately $511.

Charge 6 alleges that the respondent engaged in conduct that adversely reflects on his fitness to practice law by converting funds and/or failing to maintain a duly constituted escrow account in breach of his fiduciary duty, in violation of Code of Professional Responsibility DR 1-102 (a) (7) (22 NYCRR 1200.3 [a] [7]), in connection with funds he deposited into his master/ main escrow account relating to a landlord-tenant matter known as Locust. He disbursed funds relating to Locust without ensuring that he had adequate funds on deposit for Cluster-Locust in his master escrow account. Specifically, on or about December 26, 2003, he disbursed $6,832.90 relating to Locust from his [18]*18master escrow account when he had at the time only $4,832.90 on deposit for Locust. At the time, the respondent had approximately $1,341.72 relating to Locust on deposit in his Cluster subaccount.

Charge 7 alleges that the respondent engaged in conduct that adversely reflects on his fitness to practice law by converting funds and/or failing to maintain a duly constituted escrow account in breach of his fiduciary duty, in violation of Code of Professional Responsibility DR 1-102 (a) (7) (22 NYCRR 1200.3 [a] [7]), in connection with funds he deposited into his master/ main escrow account relating to a landlord-tenant matter known as 244 New Main Street. He disbursed or transferred funds relating to 244 New Main Street without ensuring that he had adequate funds on deposit for that entity in his master escrow account.

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In re Goldstein, 60 A.D.3d 14, 871 N.Y.S.2d 246 (N.Y. Ct. App. 2008).

60 A.D.3d 14 (In re Goldstein) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Shockome v. Shockome
30 A.D.3d 528 (Appellate Division of the Supreme Court of New York, 2006)