In Re Krule

741 N.E.2d 259, 194 Ill. 2d 109, 251 Ill. Dec. 665, 2000 Ill. LEXIS 1711
CourtIllinois Supreme Court
DecidedDecember 1, 2000
DocketM.R 16045
StatusPublished
Cited by3 cases

This text of 741 N.E.2d 259 (In Re Krule) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Krule, 741 N.E.2d 259, 194 Ill. 2d 109, 251 Ill. Dec. 665, 2000 Ill. LEXIS 1711 (Ill. 2000).

Opinions

CHIEF JUSTICE HARRISON

delivered the opinion of the court:

Jerome Krule petitioned this court for review of the most recent recommendation by the Committee on Character and Fitness (the Committee) that he not be certified for admission to the bar. 166 Ill. 2d R. 708(d). After the Committee filed its response, we allowed Krule’s petition and permitted the parties to present oral argument. For the reasons that follow, Krule’s application for admission to the bar is denied.

Jerome Krule graduated from the John Marshall Law School in 1994. In 1995, the Committee on Character and Fitness (the Committee) voted not to recommend certification of Krule for admission to the practice of law. In reaching that decision, the Committee was most concerned with Krule’s participation in an insurance fraud scheme which resulted in his conviction of a felony in 1988- The Committee felt that Krule was less than candid in describing his role in the scheme and he had not adequately demonstrated that he was rehabilitated. The Committee also expressed concern over Krule’s apparent lack of candor in failing to apprise his law school of three previous misdemeanor convictions.

Krule sought a new hearing in 1996. Because his request was made prior to expiration of the requisite two-year waiting period following the Committee’s 1995 decision, it was denied. Bar Admission Rule 9.1. Krule then filed another petition for a new hearing in 1998. This time the Committee granted the petition, and the hearing panel convened a new hearing in the case in March of 1999.

After taking evidence, the hearing panel concluded that Krule had failed to meet his burden of proving by clear and convincing evidence that he possesses the requisite moral character and general fitness to practice law. The hearing panel further concluded that Krule had once again failed to show that he had been sufficiently-rehabilitated. Based on these conclusions, the Committee adhered to its original decision and voted not to recommend certification of Krule.

In undertaking our review of the Committee’s decision, we begin by noting that the final judgment regarding admission of an applicant to the practice of law rests with this court. As a general rule, a determination by the Committee on Character and Fitness concerning the character and fitness of an applicant neither binds this court nor limits our authority to take action. In re Loss, 119 Ill. 2d 186, 192 (1987). We have also held, however, that where a hearing panel concludes that a petitioner does not possess the good moral character and general fitness necessary for the practice of law and recommends that certification be denied, as was the case here, this court will not reverse unless that recommendation was arbitrary. In re Glenville, 139 Ill. 2d 242, 252 (1990).

The criminal conviction which led to the original denial of Krule’s certification arose from a scheme he facilitated to systematically defraud insurance companies. At the time, Krule was a licensed insurance professional. He testified that he contacted an attorney named George Anderson to “go into business with him in personal injury.” The business worked this way.

Anderson owned some taxi cabs, and Krule took a job in his office. When one of the taxi drivers was involved in an accident, Krule would arrange for him to see a Dr. Starkman. With Krule’s knowledge and complicity, Stark-man would deliberately generate inflated bills containing charges for services that were not necessary or were not performed. Krule, in turn, would submit the fraudulent bills to insurance companies for reimbursement. Krule engaged in this activity from August of 1986 through February of 1987. During this period he submitted scores of false claims to eight different insurance companies.

Krule’s insurance fraud scheme ended with an 82-count indictment issued by a Du Page County grand jury. Named as defendants were Krule, attorney Anderson, Dr. Starkman, and six other individuals. Krule pled guilty to one count of theft, a felony, in exchange for his testifying as a government witness. He was sentenced to 30 month’s probation. As a condition of probation he was required to complete 950 hours of community service and pay $5,000 in restitution. Krule’s probation was terminated satisfactorily on October 1, 1990.

Attorney Anderson also pled guilty to theft. He was ordered to pay a fine of $100 and $77 in court costs and was placed on conditional discharge. The condition imposed by the sentencing judge was that Anderson was required to file a motion with our court for disbarment on consent. Anderson filed such a motion on February 16, 1990, and it was allowed by this court on March 27, 1990.

Following these developments, Krule applied to and was accepted for admission by the John Marshall Law School. As previously indicated, Krule graduated from there in 1994. The Committee on Character and Fitness subsequently refused to certify him for admission to the bar, primarily because of his felony conviction and the nature of his involvement in the insurance fraud scheme.

In ruling as it did, the Committee noted Krule’s lack of candor about these events when he applied for law school. Krule characterized his role as that of a “clerk,” even though his testimony at trial indicated that he played a far more substantial role and helped devise the scheme. A letter written by Krule to the law school’s dean contained falsehoods, and the Committee found that Krule had refused to accept responsibility for his illegal and unethical conduct. Finally, the Committee expressed concern that Krule had failed to disclose three misdemeanor charges, two of which involved pleas of guilty, on his law school application. Krule admitted that the reason he was not truthful about those charges is that he feared they would jeopardize his chances for admission into law school.

Following his felony conviction, Krule obtained employment and engaged in volunteer and charitable activities beyond those necessary to comply with the terms of his probation. The Committee acknowledged these factors and took note of positive testimony from character witnesses. The Committee nevertheless concluded that “specific evidence” of rehabilitation was lacking. The Committee also cautioned Krule that

“an applicant for admission does not become entitled to certification of his character and fitness simply by fulfilling the educational requirements and by participating in civic and charitable activities.”

When Krule obtained a new hearing in 1999, he testified on his own behalf. He told the Committee that he would consider his law license his most valuable possession. He has worked in the Evanston community defender office and served as a teacher of English as a second language in the Oakton Community College adult education program. He stated that he would like to practice law in the public sector and intended to continue his volunteer work regardless of the Committee’s decision.

Krule admitted that because he was an insurance professional at the time, “maybe he had more of a major role” than the other participants in the insurance fraud scheme that resulted in his felony conviction. He expressed remorse for his illegal conduct and said he regretted his failure to report the misdemeanor convictions when he submitted his law school application.

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Related

In re W.D.P.
91 P.3d 1078 (Hawaii Supreme Court, 2004)
In Re Krule
741 N.E.2d 259 (Illinois Supreme Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
741 N.E.2d 259, 194 Ill. 2d 109, 251 Ill. Dec. 665, 2000 Ill. LEXIS 1711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-krule-ill-2000.