In re Gross

22 A.D.3d 156, 803 N.Y.S.2d 622

This text of 22 A.D.3d 156 (In re Gross) 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 Gross, 22 A.D.3d 156, 803 N.Y.S.2d 622 (N.Y. Ct. App. 2005).

Opinion

OPINION OF THE COURT

Per Curiam.

The Grievance Committee served the respondent with a petition dated May 27, 2004, containing six charges of professional misconduct. Following a preliminary conference and a hearing, the Special Referee sustained Charges One, Two, Three, Four, and Six, and did not sustain Charge Five. The Grievance Committee now moves to confirm the Special Referee’s report insofar as it sustained Charges One, Two, Three, Four, and Six, to dis-affirm the report insofar as it did not sustain Charge Five, and to impose such discipline as the Court deems just and proper. The respondent opposes the Grievance Committee’s motion, and cross-moves to confirm the report insofar as it did not sustain Charge Five of the petition, to disaffirm the report insofar as it sustained Charges One, Two, Three, Four, and Six, and to dismiss Charge Six of the petition.

Charge One alleges that the respondent improperly converted interest accrued on clients’ funds, in violation of Code of Professional Responsibility DR 9-102 (a) (22 NYCRR 1200.46 [a]) and DR 1-102 (a) (7) (22 NYCRR 1200.3 [a] [7]).

Between January 1, 2001, and July 10, 2002, the respondent and his then-law partner, Jerome Gross, maintained an attorney escrow account, HSBC 660-45000-3, denominated “Jerome Gross, Stanley Gross Escrow Account,” into which they deposited funds belonging to the firm’s clients or third parties. Jerome Gross was suspended from the practice of law, effective April 26, 2001, by opinion and order of this Court dated March 26, 2001 (see Matter of Gross, 281 AD2d 67 [2001]).

Subsequent to April 26, 2001, the respondent continued to maintain the HSBC account as his attorney escrow account, [158]*158which was still denominated “Jerome Gross, Stanley Gross Escrow Account.” Between January 1, 2001, and July 10, 2002, when the attorney escrow account was closed, the funds deposited into it earned interest in the amount of $1,943.94. The respondent failed to disburse the earned interest to his clients or the appropriate third parties.

Charge Two alleges that the respondent improperly commingled personal funds with funds entrusted to him incident to his practice of law in violation of Code of Professional Responsibility DR 9-102 (a) (22 NYCRR 1200.46 [a]) and DR 1-102 (a) (7) (22 NYCRR 1200.3 [a] [7]).

After April 26, 2001, the respondent continued to maintain HSBC account 660-45000-3 as his attorney escrow account, which was still denominated “Jerome Gross, Stanley Gross Escrow Account.”

Between January 1, 2001, and July 10, 2002, when this attorney escrow account was closed, the respondent allowed legal fees earned by him to accumulate and remain in this account, together with funds that had been deposited into it incident to the respondent’s practice of law. Between January 1, 2001, and July 10, 2002, the respondent allowed legal fees earned by Jerome Gross to accumulate and remain in this account, together with funds that had been deposited into it incident to the respondent’s practice of law.

Charge Three alleges that the respondent failed to maintain required bookkeeping records for his attorney escrow account in violation of Code of Professional Responsibility DR 9-102 (d) (1), (2) and (8); (j) (22 NYCRR 1200.46 [d] [1], [2], [8]; Q]) and DR 1-102 (a) (7) (22 NYCRR 1200.3 [a] [7]).

Between January 1, 2001, and July 10, 2002, when this attorney escrow account was closed, the respondent failed to maintain records of all deposits into and withdrawals from this account showing the date, source, and description of each item deposited, and the date, payee, and purpose of each withdrawal or disbursement. The respondent also failed to maintain a ledger book or similar record for his attorney escrow account showing the source of all funds deposited into this account, the names of all persons for whom the funds are or were held, the amount of such funds, the description, and amounts, and the names of all persons to whom such funds were disbursed. Further, between January 1, 2001, and July 10, 2002, the respondent failed to maintain all checkbooks and check stubs, bank statements, prenumbered canceled checks, and duplicate deposit slips for his attorney escrow account. [159]*159Charge Four alleges that the respondent failed to produce required bookkeeping records for his attorney escrow account in relation to a legitimate investigation by the Grievance Committee into his alleged professional misconduct, in violation of Code of Professional Responsibility DR 9-102 (i) and (j) (22 NYCRR 1200.46 [i], [j]) and DR 1-102 (a) (5) and (7) (22 NYCRR 1200.3 [a] [5], [7]).

By letter dated March 3, 2003, the Grievance Committee directed the respondent to produce specified bookkeeping and bank records for his attorney escrow account for the period June 2001 to June 2002 at an investigative session scheduled to be held on the following day at the Grievance Committee’s office. After that investigative session was rescheduled to March 14, 2003, by letter dated March 6, 2003, the respondent was again directed to produce the specified records for his attorney escrow account at the rescheduled session. The respondent did not produce all the specified records for his attorney escrow account when he appeared at the investigative session on March 14, 2003.

By letter dated March 14, 2003, the respondent was again directed to produce specified records for his attorney escrow account for the period June 2001 to June 2002, on or before March 21, 2003. The respondent failed to produce all the specified records for his attorney escrow account by that date.

By letter dated April 21, 2003, the respondent was again directed to produce specified records for his attorney escrow account for the period June 2001 to June 2002, on or before May 12, 2003. The respondent failed to produce all the specified records for his attorney escrow account when he appeared at the investigative session on May 16, 2003.

Charge Five alleges that the respondent improperly held himself out as being in partnership with a suspended attorney, in violation of Code of Professional Responsibility DR 1-102 (a) (4) and (7) (22 NYCRR 1200.3 [a] [4], [7]).

Between April 26, 2001, and July 10, 2002, when the attorney escrow account was closed, the respondent continued to draw checks against it, which checks bore the title “Jerome Gross, Stanley Gross Escrow Account.” After April 26, 2001, the respondent continued to use stationery that bore the letterhead, “Gross and Gross, Attorneys and Counsellors at Law.”

Charge Six alleges that the respondent took legal fees from a client in a real estate transaction without her knowledge or [160]*160consent, in violation of Code of Professional Responsibility DR 1-102 (a) (4) and (7) (22 NYCRR 1200.3 [a] [4], [7]).

In or about July 2001, Katherine Smith retained the respondent to represent her in a real estate transaction. By or about October 22, 2001, Ms. Smith paid the respondent a total of $950, which she believed represented payment of his legal fees in full. However, on or about April 18, 2002, at the closing of title for the property Ms. Smith was selling, the respondent deducted additional legal fees of $1,500 from the proceeds of the sale without Ms. Smith’s knowledge or consent.

The Grievance Committee’s case consisted of the testimony of Katherine Smith, with 14 exhibits in evidence relating to her testimony, and 12 additional exhibits, previously marked for identification at the prehearing conference.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re Gross
281 A.D.2d 67 (Appellate Division of the Supreme Court of New York, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
22 A.D.3d 156, 803 N.Y.S.2d 622, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-gross-nyappdiv-2005.