In re Jones

118 A.D.3d 41, 984 N.Y.S.2d 85

This text of 118 A.D.3d 41 (In re Jones) 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 Jones, 118 A.D.3d 41, 984 N.Y.S.2d 85 (N.Y. Ct. App. 2014).

Opinion

OPINION OF THE COURT

Per Curiam.

The Grievance Committee for the Ninth Judicial District served the respondent with a verified petition dated March 28, 2012, containing 10 charges of professional misconduct. Following a hearing, the Special Referee sustained all 10 charges. The Grievance Committee now moves to confirm the report of the Special Referee. In opposition, the respondent asserts that he has an unblemished disciplinary record in 27 years of practice; that he submitted character letters evidencing his excellent reputation and service on the Assigned Counsel Panel of New Rochelle, as well as his pro bono and related community service; that he cooperated with the Grievance Committee; that he has accepted responsibility for his actions and expressed remorse; and that he has taken corrective measures. He asks that any sanction be limited to a public censure.

Charge 1 alleges that the respondent misappropriated funds belonging to another person, which were entrusted to him incident to his practice of law, in violation of Rules of Professional Conduct (22 NYCRR 1200.0) rule 1.15 (a). The respondent represented Bibi N. Gardner, then known as Bibi Baksh, in the sale of her cooperative apartment to Sachiko Brown, as well as in Gardner’s subsequent purchase of a condominium apartment from Joanne Volpe. On or about July 22, 2010, the respondent deposited a check from Sachiko Brown, in the amount of $12,500, into his escrow account at Bank of America (hereinafter BOA escrow account), which deposit was identified as the [43]*43“contract deposit” for the pending Gardner-to-Brown transaction. On August 30, 2010, the respondent withdrew $3,500 from his BOA escrow account, causing his overall escrow account balance to drop to $9,006.56, well below the $12,500 balance he was required to maintain in connection with the Gardner-to-Brown transaction. That same day, the respondent deposited the $3,500, which he withdrew from his BOA escrow account, into his business account at JP Morgan Chase Bank (hereinafter Chase business account). The balance in the respondent’s Chase business account prior to the foregoing deposit was $323.53. The respondent thereupon caused $3,400 to be transferred from his Chase business account to American Express to pay his personal credit card bill. On or about September 9, 2010, the respondent disbursed a check in the amount of $3,500 from his Chase business account, and deposited the check into his BOA escrow account the following day, thereby restoring the $12,500 contract deposit he was required to maintain in connection with the Gardner-to-Brown transaction. The Gardner-to-Brown closing took place on or about November 3, 2010.

Charge 2 alleges that the respondent engaged in conduct involving deceit and misrepresentation, and conduct prejudicial to the administration of justice, in violation of Rules of Professional Conduct (22 NYCRR 1200.0) rule 8.4 (c) and (d). By letter dated and submitted to the Grievance Committee on June 30, 2011, the respondent represented that he transferred $3,500 from his BOA escrow account to his Chase business account as part of a plan to transfer his escrow account to Chase following the Gardner closings and, further, that he immediately transferred the $3,500 back to his BOA escrow account, after he noticed that the Gardner contract of sale restricted him to that account. The respondent repeated this representation to the Grievance Committee in a written submission dated July 26, 2011. In subsequent sworn testimony, the respondent withdrew his prior statements. He testified that he had no excuse for using the escrow funds, and acknowledged that replenishing the funds was no defense.

Charge 3 alleges that the respondent failed to maintain accurate contemporaneous entries of all financial transactions in a ledger book or similar record maintained in the regular course of his practice with respect to his BOA escrow account, in violation of Rules of Professional Conduct (22 NYCRR 1200.0) rule 1.15 (d) (2). At the Gardner-to-Brown closing, the respondent [44]*44disbursed check number 1020, from his BOA escrow account, dated November 3, 2010, and payable to Bibi N. Gardner in the amount of $10,000, representing “the contract down payment less post-closing possession escrow.” The respondent was required to hold the $2,500 balance of the $12,500 contract deposit in escrow, pursuant to a post-closing possession agreement between Gardner and Brown, whereby Gardner was permitted to remain in the premises until she closed on the condominium purchase from Volpe. The $2,500 was to cover Gardner’s per diem rent, and any damage she might cause to the premises during the rental period. ’Brown’s attorney was to notify the respondent of any such damage within three business days after Gardner vacated the premises. If the respondent was not so notified, he was authorized to disburse the $2,500 to Gardner, minus any rent owed to, Brown. Gardner vacated the premises on or about November 20, 2010. On November 24, 2010, the third business day after Gardner vacated the premises, the respondent disbursed BOA escrow check number 1021, payable to himself in the amount of $500, as a legal fee for preparing a pre-closing possession agreement between Gardner and Volpe, whereby Gardner would move into the Volpe condominium before the closing took place. The disbursement of BOA escrow check number 1021 reduced the balance, which the respondent was holding in connection with the Gardner-to-Brown transaction, from $2,500 to $2,000. On November 29, 2010, the respondent deposited $300 cash into hig BOA escrow account, raising the balance he was lading in connection with the Gardner-to-Brown transaction to $2,300. On November 30, 2010, the respondent disbursed BOA escrow check number 1022, payable to Gardner in the amount of $2,011.48, referenced “down payment balance.” The disbursement of BOA escrow check number 1022 reduced the balance the respondent was holding in connection with the Gardner-to-Brown transaction to $288.52. On December 7, 2010, the respondent deposited $200 cash into his BOA escrow account, raising the balance he was holding in connection with the Gardner-to-Brown transaction to $488.52. By BOA escrow check number 1024, dated December 1, 2010, and paid by the bank on December 15, 2010, the respondent disbursed $488.52 to Brown as “post-closing rent,” bringing the balance he was holding in connection with the Gardner-to-Brown transaction to zero, and reducing the overall BOA escrow account balance to $6.56. The respondent was unable to produce any records to document the source of the cash he deposited into his escrow account.

[45]*45Charge 4 alleges that the respondent breached his fiduciary duty, and engaged in conduct adversely reflecting on his fitness as a lawyer, by failing to review records for his escrow account to ensure that he had adequate funds on deposit before making a disbursement, in violation of Rules of Professional Conduct (22 NYCRR 1200.0) rules 1.15 (a) and 8.4 (h). On March 30, 2011, the respondent disbursed escrow check number 1025 from his BOA escrow account, in the amount of $25, payable to himself. The check was dishonored because the balance on deposit was only $6.56. In sworn testimony, the respondent admitted that he did not review records for his BOA escrow account, and did not take any steps to determine the balance in the account before he disbursed check number 1025.

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

Related

§ 90
New York JUD § 90

Cite This Page — Counsel Stack

Bluebook (online)
118 A.D.3d 41, 984 N.Y.S.2d 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-jones-nyappdiv-2014.