In Re Greenberg

749 A.2d 434, 561 Pa. 154, 2000 Pa. LEXIS 671
CourtSupreme Court of Pennsylvania
DecidedMarch 22, 2000
Docket762 Disciplinary Docket 2
StatusPublished
Cited by13 cases

This text of 749 A.2d 434 (In Re Greenberg) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Greenberg, 749 A.2d 434, 561 Pa. 154, 2000 Pa. LEXIS 671 (Pa. 2000).

Opinions

OPINION

CASTILLE, Justice.

This matter involves Lawrence Greenberg’s Petition for Reinstatement to the bar of the Pennsylvania Supreme Court following his disbarment. On December 4, 1989, petitioner pled guilty in the United States District Court for the Northern District of Ohio to one count of conspiracy and one count of bankruptcy fraud. The criminal charges stemmed from a [156]*156number of fraudulent financial transfers that petitioner and his partner, Robert Newstat, made when their company, Enduro Stainless, Inc. (“ESI”), encountered financial difficulties in the mid-1980’s. Petitioner was sentenced to five years’ imprisonment,. five years’ additional suspended sentence, a $250,000 fine, $1.7 million in restitution, and 1,200 hours of community service. On July 31,1990, petitioner submitted his resignation from the bar of the Pennsylvania Supreme Court pursuant to Pa.R.D.E. 215.1 He was disbarred by Order of this Court dated October 3,1990.

On December 4, 1996, petitioner filed a Petition for Reinstatement as provided by Disciplinary Board Rules and Procedures § 89.272(b). A hearing on the petition was held before a hearing committee on September 23, 1997. The committee authored a unanimous report recommending reinstatement. Subsequently, the Disciplinary Board issued a report unanimously recommending that petitioner be reinstated.

On January 12, 1999, this Court issued a Rule to Show Cause why an order denying reinstatement should not be entered based upon petitioner’s failure to overcome the threshold standard articulated in Office of Disciplinary Counsel v. Keller, 509 Pa. 573, 506 A.2d 872 (1986), as well as his failure to demonstrate by clear and’ convincing evidence that he has the requisite moral qualifications, competency and learning in the law to practice law in this Commonwealth. Petitioner submitted a brief in support of his petition and requested oral argument. This Court denied his Petition for Reinstatement and his request for oral argument on March 15, 1999. In the Matter of Greenberg, 556 Pa. 101, 727 A.2d 113 (1999). Petitioner subsequently filed a Petition for Reconsideration. On May 10, 1999, this Court entered an Order granting reconsideration and directing that the matter be submitted on briefs.

[157]*157As a threshold matter, this Court must determine whether Greenberg has demonstrated that his breach of trust was not so egregious that it precludes us from even considering his petition for reinstatement. See In the Matter of Jerome J. Verlin, 557 Pa. 47, 731 A.2d 600 (1999); In the Matter of Costigan, 541 Pa. 459, 464-65, 664 A.2d 518, 520 (1995); Keller, supra. In light of this Court’s previous holdings, we cannot say that petitioner’s misconduct was so great that he can never be reinstated to the bar. See Verlin, 557 Pa. at 47, 731 A.2d at 600; Costigan, 541 Pa. at 459, 664 A.2d at 518. Nevertheless, our independent review of the facts in the instant case convinces us that allowing petitioner to resume the practice of law at this time would have a detrimental effect upon the integrity and standing of the bar and on the administration of justice and would subvert the public interest. See Verlin, 557 Pa. at 51, 731 A.2d at 602.

The misconduct in this matter arose from petitioner’s involvement with ESI, a corporation that made highly leveraged purchases of other metal companies. On November 22, 1985, due to severe financial problems, petitioner and Newstat were forced to close the business. On February 21, 1986, they filed a Chapter 11 bankruptcy petition on behalf of ESI. However, during a three-month period prior to the bankruptcy filing, Newstat and petitioner fraudulently transferred $2,155,000 from ESI to another corporation that they had recently formed. The partners funneled approximately $500,000 of these funds back into the bankrupt company in order to meet the corporation’s current obligations. Petitioner used $75,000 of these funds to pay a personal IRS liability and transferred $90,000 to his personal accounts. Petitioner and Newstat failed to disclose these transfers in any of the required bankruptcy filings. Although petitioner was not actively practicing law at the time the transfers were made, he was a member of the bar. After the demise of ESI, petitioner resumed practicing law.

In arguing for reinstatement, petitioner asserts that there was “no evidence presented that the public trust would be diminished, that the legal profession would be somehow [158]*158tarnished, and that there would be any blight upon the profession or society” should he be reinstated. Petitioner emphasizes the Office of Disciplinary Counsel’s failure to present witnesses to demonstrate the negative impact that his reinstatement would have. However, it is petitioner who bears the burden of proving, by clear and convincing evidence, that he should be reinstated. See Verlin, 557 Pa. at 51, 731 A.2d at 602. The Office of Disciplinary Counsel was not obligated to present witnesses on this point.

In any event, no independent evidence is necessary to appreciate that reinstatement at this time would be detrimental to the integrity and standing of the bar, the administration of justice and the public interest. When, in the face of bankruptcy, an attorney fraudulently transfers more than $2 million in funds from a corporation where he is a principal for his own personal gain, the legal profession is tarnished and public trust cannot help but be diminished. Of course, petitioner’s misconduct was more serious than that. After fraudulently transferring the funds, petitioner repeatedly filed documents under oath before the bankruptcy court falsely stating that he had not done so. Deliberate misrepresentations in court filings by an attorney are a grievously serious matter. Attorneys, as officers of the court, who intentionally file false statements in court proceedings implicate the very core of the justice system. Ours is a profession that can only function effectively as long as attorneys abide by their ethical requirements. See generally Office of Disciplinary Counsel v. Grigsby, 493 Pa. 194, 425 A.2d 730 (1981). By repeatedly providing false information to a court of law, petitioner has seriously damaged both the legal profession and the public trust. It is difficult to imagine a circumstance that more closely implicates one’s fitness to practice law.

To bolster his claim that the passage of time has ameliorated the impact of his misconduct and calls for his reinstatement, petitioner repeatedly emphasizes that the illegal conduct occurred thirteen years ago. This is not entirely accurate. Although petitioner made the fraudulent transfers and the false filings thirteen years ago, his misconduct continued for [159]*159several additional years thereafter. Following ESI’s liquidation, petitioner resumed practicing law. He continued to practice law for three years, all the while concealing his fraudulent financial dealings and false filings. It was only after he learned that he would likely be indicted by the Federal authorities that petitioner notified the Disciplinary Board of his misconduct and tendered his resignation.

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Bluebook (online)
749 A.2d 434, 561 Pa. 154, 2000 Pa. LEXIS 671, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-greenberg-pa-2000.