In re Jacobs

34 A.D.3d 4, 820 N.Y.S.2d 619

This text of 34 A.D.3d 4 (In re Jacobs) 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 Jacobs, 34 A.D.3d 4, 820 N.Y.S.2d 619 (N.Y. Ct. App. 2006).

Opinion

OPINION OF THE COURT

Per Curiam.

The petitioner Grievance Committee for the Second and Eleventh Judicial Districts (hereinafter the Grievance Committee) served the respondent with a petition containing 13 charges of professional misconduct, and the respondent served an answer and an amended answer. Following a preliminary conference, a hearing was held. The Grievance Committee submitted 28 exhibits into evidence and presented the testimony of nine witnesses. The respondent appeared pro se, testified on his own behalf, and submitted 22 exhibits into evidence. The Special Referee sustained Charges Two (B), (C) and (D), and Charges Five, Six, Seven and Twelve in full. He did not sustain Charges One, Two, in part, Three, Four, Eight, Nine, Ten, Eleven and Thirteen. The Grievance Committee now moves to confirm the report of the Special Referee insofar as it sustained the charges, to disaffirm the report insofar as it did not sustain the charges, and for this Court to impose such discipline as is deemed appropriate. Although served with a copy of the Grievance Committee’s motion, the respondent has not submitted any response or cross motion.

Charges One through Four concern the respondent’s failure to fulfill his fiduciary obligations with respect to settlement funds received by him on behalf of his client Uriel Arias-Catano.

Charge One alleged that the respondent converted to his own use funds that had been entrusted to him as a fiduciary incident to his practice of law.

In or about November 2000 the respondent settled a personal injury matter on behalf of Catano for $22,500. On or about November 17, 2000, the respondent deposited the insurance carrier’s check in the sum of $22,500 into an HSBC account denominated “The Law Offices of Mark L. Jacobs, IOLA Ac[6]*6count.” Prior to this deposit, the balance in the respondent’s IOLA account was $10,306.12.

On or about November 17, 2000, the respondent drew IOLA account check No. 1001 to himself, in the amount of $7,133.65, representing his legal fee, and check No. 1004 to himself, in the amount of $1,099.05, to cover disbursements.

On or about December 20, 2000, the respondent drew IOLA account check No. 1005 to the order of Catano in the amount of $7,330, on which he wrote “Medical liens payment.”

On or about December 21, 2000, the respondent endorsed IOLA account check No. 1005, by writing the words, “Uriel de Jesus Catano, Pay to the order of Mark Jacobs,” without Catano’s knowledge or consent. The respondent then signed his own name on check No. 1005 and deposited it into his law firm’s operating account. Prior to this deposit, the balance in the respondent’s operating account was only $56.19.

On or about December 21, 2000, at the respondent’s direction, an HSBC teller’s check was drawn against the respondent’s operating account, in the amount of $6,375, to the order of Harmed Farahan, the respondent’s landlord for his personal residence, and the respondent delivered the teller’s check to Farahan’s attorney, to pay outstanding rent.

By reason of the foregoing, the respondent violated Code of Professional Responsibility DR 9-102 (a) (22 NYCRR 1200.46 [a]) and DR 1-102 (a) (4) and (7) (22 NYCRR 1200.3 [a] [4], [7]).

Charge Two (A) alleged that the respondent intentionally misrepresented to Catano the amount of settlement proceeds to which he was entitled, to conceal the fact that the respondent had converted a portion of that settlement to his own use.

On or about January 31, 2001, the respondent drew IOLA account check No. 1016, in the amount of $4,887.30, to the order of Catano. In a cover letter dated February 2, 2001, the respondent falsely stated to Catano that the enclosed IOLA account check represented his share of the settlement proceeds and that liens for medical care amounted to $9,380, thereby reducing Catano’s share of the settlement proceeds by that amount. In fact, in December 2000 the respondent had converted a portion of Catano’s share of the settlement proceeds to his own use.

By reason of the foregoing, pursuant to Charge Two (B), the respondent violated Code of Professional Responsibility DR 7-102 (a) (5) (22 NYCRR 1200.33 [a] [5]). Pursuant to Charge Two (C), the respondent violated Code of Professional Responsi[7]*7bility DR 1-102 (a) (4) (22 NYCRR 1200.3 [a] [4]). Pursuant to Charge Two (D), the respondent violated Code of Professional Responsibility DR 1-102 (a) (7) (22 NYCRR 1200.3 [a] [7]).

Charge Three alleged that the respondent failed to fulfill his obligation to pay the remainder of Catano’s share of the settlement proceeds.

On or about April 11, 2001, the respondent drew IOLA account check No. 1020 to the order of Catano in the amount of $2,000. In or about November 2001 the respondent agreed to pay the remainder of Catano’s share of the settlement proceeds, in the amount of $7,380, on or before December 14, 2001. On or about November 14, 2001,the respondent executed a promissory note in the amount of $7,380 payable to Catano to memorialize the respondent’s agreement. To date, the respondent has failed to pay the remainder of Catano’s share of the settlement proceeds.

By reason of the foregoing, the respondent violated Code of Professional Responsibility DR 7-102 (a) (5) (22 NYCRR 1200.33 [a] [5]) and DR 1-102 (a) (4) and (7) (22 NYCRR 1200.3 [a] [4], [7]).

Charge Four alleges that the respondent falsely testified and provided false written answers in relation to legitimate investigations by petitioner.

On or about January 30, 2002, the Grievance Committee received a complaint of professional misconduct against the respondent from Catano, who alleged that the respondent had still failed to pay the remainder of his share of the settlement proceeds.

On March 21, 2002, during an investigative session at the Grievance Committee’s office, the respondent testified that he properly disbursed Catano’s settlement proceeds. In fact, in December 2000 the respondent had converted a portion of Catano’s share of the settlement proceeds to his own use.

By letter dated March 21, 2002, counsel to the Grievance Committee directed the respondent to provide a complete explanation of his handling of Catano’s settlement proceeds, including IOLA account check No. 1005, in a written answer to be submitted on or before April 8, 2002. By letter to counsel to the petitioner dated April 4, 2002, the respondent requested additional time to submit his written answer to Catano’s complaint. By letter dated April 22, 2002, counsel for the Grievance Committee again directed the respondent to provide a [8]*8complete explanation of his handling of Catano’s settlement proceeds, including IOLA account check No. 1005. The respondent was directed to submit his written answer on or before May 6, 2002.

In a May 15, 2002, written answer to Catano’s complaint, the respondent failed to provide a complete explanation of his handling of Catano’s settlement proceeds, including IOLA account check No. 1005 and to state that in December 2000, he had converted a portion of Catano’s share of the settlement proceeds to his own use.

By letter dated January 24, 2003, the Grievance Committee directed the respondent to provide a complete explanation of his handling of Catano’s settlement proceeds, including IOLA account check No. 1005 on or before February 4, 2003.

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Bluebook (online)
34 A.D.3d 4, 820 N.Y.S.2d 619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-jacobs-nyappdiv-2006.