In re Ponzini

259 A.D.2d 142, 694 N.Y.S.2d 127, 1999 N.Y. App. Div. LEXIS 8702
CourtAppellate Division of the Supreme Court of the State of New York
DecidedAugust 16, 1999
StatusPublished
Cited by5 cases

This text of 259 A.D.2d 142 (In re Ponzini) 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 Ponzini, 259 A.D.2d 142, 694 N.Y.S.2d 127, 1999 N.Y. App. Div. LEXIS 8702 (N.Y. Ct. App. 1999).

Opinion

OPINION OF THE COURT

Per Curiam.

The Grievance Committee served the respondent with a petition containing 14 charges of professional misconduct against him. After a joint hearing with Robert W. Spencer and Thomas W. Maroney (see, Matter of Maroney, 259 AD2d 206 [decided herewith]; Matter of Spencer, 259 AD2d 218 [decided herewith]), Special Referee Becker sustained all 14 charges. The Grievance Committee now moves for an order confirming the Special Referee’s report and imposing such discipline upon the respondent as the Court deems just and proper. The respondent cross-moves for an order disaffirming the Special Referee’s report insofar as it sustained the 14 charges, affirming those findings of the Special Referee which concluded that the respondent had not acted in any way with venality and which recognized the respondent’s excellent character and reputation, and imposing a sanction no more severe than a public censure.

Charge One alleged that the respondent engaged in conduct involving conversion, breach of fiduciary duty, and/or conduct that adversely reflects upon his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (A) (7) (22 NYCRR 1200.3 [a] [7]), by allowing the balance in his firm’s attorney escrow account to fall below 0.

Beginning on or before October 14, 1982 until approximately June 30, 1992, the respondent was an authorized signatory on a general client’s Citibank escrow account, captioned as a “Special Account” in the name of “Walsh, Maroney, & Ponzini, Esqs.” and/or “Maroney, Ponzini, & Spencer, Esqs.” From about January 4, 1988 through January 10, 1988, the balance in the subject account fell below 0, as reflected in the bank statement for the period ending January 12, 1988. At all pertinent times, the respondent knew or should have known that a negative balance existed.

Charge Two alleged that the respondent engaged in conduct that adversely reflects upon his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (A) (7) (22 NYCRR 1200.3 [a] [7]), by failing to oversee the record keeping of his attorney escrow account and causing or failing to prevent the deposit of funds held on behalf of others, when a negative balance existed in the account.

[144]*144During the subject period, there were deposits into the escrow account of funds of third parties received incident to the respondent’s practice of law, which funds were wholly consumed and/or converted by virtue of the negative balance. At all pertinent times, the respondent knew or should have known that a negative balance in the escrow account would consume and/or convert part or all of any deposits made to the account, thereby leaving an insufficient balance in the account.

Charge Three alleged that the respondent engaged in conduct involving conversion, breach of fiduciary duty, and/or conduct that adversely reflects upon his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (A) (7) (22 NYCRR 1200.3 [a] [7]), by allowing the balance in the escrow account to fall below 0.

From January 19, 1988 through approximately March 10, 1988, the balance in the escrow account fell below 0, as reflected on bank statements. At all pertinent times, the respondent knew or should have known that a negative balance existed.

Charge Four alleged that the respondent engaged in conduct that adversely reflects upon his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (A) (7) (22 NYCRR 1200.3 [a] [7]), by failing to oversee the record keeping of the attorney escrow account and causing or failing to prevent the deposit therein of funds held on behalf of others, at a time when a negative balance existed.

During the subject period, there were deposits into the escrow account of funds of third parties received incident to the respondent’s practice of law, which funds were wholly consumed and/or converted by virtue of the negative balance in the escrow account. At all pertinent times, the respondent knew or should have known that a negative balance in an escrow account would consume and/or convert part or all of any deposits made to the account, leaving an insufficient balance in the account.

Charge Five alleged that the respondent engaged in conduct [involving conduct] that adversely reflects upon his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (A) (7) (22 NYCRR 1200.3 [a] [7]), by allowing the balance in the escrow account to fall below 0.

On April 10, 1989, the balance in the escrow account fell below 0, as reflected on that month’s bank statement. At all times, the respondent knew or should have known that a negative balance existed.

[145]*145Charge Six alleged that the respondent engaged in conduct that adversely reflects upon his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (A) (7) (22 NYCRR 1200.3 [a] [7]), by failing to oversee the record keeping of the attorney escrow account and causing or failing to prevent the deposit of funds held on behalf of others, at a time when a negative balance existed.

During the subject period, there were deposits into the escrow account of funds of third parties received incident to the respondent’s practice of law, which were wholly consumed and/or converted by virtue of the negative balance in the account. At all pertinent times, the respondent knew or should have known that a negative balance in an escrow account would consume and/or convert part or all of any deposits made to the account, thereby leaving an insufficient balance in the account.

Charge Seven alleged that the respondent engaged in conduct involving conversion, breach of fiduciary duty, and/or conduct that reflects adversely upon his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (A) (7) (22 NYCRR 1200.3 [a] [7]), by allowing the balance in the attorney escrow account to fall below 0.

From June 1, 1990 through June 5, 1990, the balance in the escrow account fell below 0 as reflected on that account’s bank statement for the period ending June 11, 1990. At all pertinent times, the respondent knew or should have known that a negative balance existed in the escrow account.

Charge Eight alleged that the respondent engaged in conduct that adversely reflects upon his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (A) (7) (22 NYCRR 1200.3 [a] [7]), by failing to oversee the record keeping of his attorney escrow account and causing or failing to prevent the deposit of funds held on behalf of others, at a time when a negative balance existed.

During the subject period, there were deposits into the escrow account of funds of third parties received incident to the respondent’s practice of law, which funds were wholly consumed and/or converted by virtue of the negative balance. At all pertinent times, the respondent knew or should have known that a negative balance in an escrow account would consume and/or convert part or all of any deposits made into the account, thereby leaving an insufficient balance in the account.

Charge Nine alleged that the respondent converted funds entrusted to him and/or engaged in conduct which adversely [146]

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Related

In re Galasso
105 A.D.3d 103 (Appellate Division of the Supreme Court of New York, 2013)
In re Ponzini
268 A.D.2d 478 (Appellate Division of the Supreme Court of New York, 2000)
In re Maroney
259 A.D.2d 206 (Appellate Division of the Supreme Court of New York, 1999)
In re Spencer
259 A.D.2d 218 (Appellate Division of the Supreme Court of New York, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
259 A.D.2d 142, 694 N.Y.S.2d 127, 1999 N.Y. App. Div. LEXIS 8702, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-ponzini-nyappdiv-1999.