In re Ryan

264 A.D.2d 128, 703 N.Y.S.2d 247, 2000 N.Y. App. Div. LEXIS 2007
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 22, 2000
StatusPublished
Cited by1 cases

This text of 264 A.D.2d 128 (In re Ryan) 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 Ryan, 264 A.D.2d 128, 703 N.Y.S.2d 247, 2000 N.Y. App. Div. LEXIS 2007 (N.Y. Ct. App. 2000).

Opinion

OPINION OF THE COURT

Per Curiam.

The petition contains 19 charges of professional misconduct against the respondent. In his answer, the respondent admitted all of the factual allegations contained in the petition, but denied that he was guilty of any professional misconduct. The respondent subsequently stipulated to the factual allegations. After a hearing, the Special Referee sustained all 19 charges against the respondent. The Grievance Committee now moves to confirm the report of the Special Referee, and the respondent cross-moves to disaffirm the report only to the extent of presenting mitigating circumstances that would have an impact upon the measure of discipline to impose.

Charge One alleged that the respondent engaged in conduct adversely reflecting on his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (a) (8) (now [7]) (22 NYCRR 1200.3 [a] [7]), by converting funds and failing to maintain a duly-constituted escrow account in breach of his fiduciary duties. On or about March 7, 1997, the Grievance Committee for the Ninth Judicial District received a notice from the Lawyers’ Fund for Client Protection that an item in the amount of $27 had been presented for payment against the respondent’s attorney trust account and returned unpaid due to insufficient funds. The item in question was a “TeleCheck” debit charge related to check number 1808 in the amount of $22, which was drawn on the respondent’s attorney trust account and payable to Old Navy. Check number 1808 was returned due to insufficient funds. The respondent disbursed check number 1808 to Old Navy for non-escrow-related purposes.

Charge Two alleged that the respondent engaged in conduct adversely reflecting on his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (a) (8) (now [7]) (22 NYCRR 1200.3 [a] [7]), by converting funds and failing to maintain a duly-constituted escrow account in breach of his fiduciary duties. In or about May 1996, the respondent deposited $15,000 into his attorney trust account on behalf of a [130]*130client named Randolph Post, representing the down payment in a real estate transaction. The down payment was not available for distribution at the closing .because the respondent had used the funds for personal expenses. From May 1996, when the down payment was deposited, to the date of the closing, the balance in the respondent’s attorney trust account fell below the amount the respondent was required to hold on behalf of Mr. Post, and the account had a negative balance on several occasions.

Charge Three alleged that the respondent engaged in conduct adversely reflecting on his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (a) (8) (now [7]) (22 NYCRR 1200.3 [a] [7]), by converting funds and failing to maintain a duly-constituted escrow account in breach of his fiduciary duties. In or about June 1996, the respondent deposited $34,000 into his attorney trust account on behalf of a client named John Hammond. The $34,000 represented the down payment in a real estate transaction that closed on or about September 26, 1996. The respondent used some of those funds for personal and/or business purposes. Between June 1996, when the down payment was deposited, and the date of the closing, the balance in the respondent’s attorney trust account fell below the amount the respondent was required to hold on behalf of Mr. Hammond, and the account had a negative balance on several occasions.

Charge Four alleged that the respondent neglected a legal matter entrusted to him, in violation of Code of Professional Responsibility DR 6-101 (a) (3) (22 NYCRR 1200.30 [a] [3]), by failing to pay transfer taxes in a timely fashion. The respondent was required to make payments to the New York State Tax Department and the New York City Department of Finance in connection with the Hammond closing. As of January 1998, approximately 16 months after the closing, the respondent had not made the payments to the aforementioned agencies. The respondent ultimately made those payments on or about February 5, 1998.

Charge Five alleged that the respondent engaged in conduct adversely reflecting on his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (a) (8) (now [7]) (22 NYCRR 1200.3 [a] [7]), by converting funds and failing to maintain a duly-constituted escrow account in breach of his fiduciary duties. In or about April 1996, the respondent deposited $8,500 into his attorney trust account on behalf of a client named John P. MacKenzie, representing the down pay[131]*131ment in a real estate transaction. The respondent used some of those funds for personal and/or business purposes. Between April 1996, when the down payment was deposited, and the date of the closing, the balance in the respondent’s attorney trust account fell below the amount the respondent was required to hold on behalf of Mr. MacKenzie.

Charge Six alleged that the respondent neglected a legal matter entrusted to him, in violation of Code of Professional Responsibility DR 6-101 (a) (3) (22 NYCRR 1200.30 [a] [3]), by failing to pay transfer taxes in a timely fashion. The respondent was required to make payments to the New York State Tax Department and the New York City Department of Finance in connection with the MacKenzie closing. As of January 1998, approximately 19 months after the closing, the respondent had not made the payments to the aforementioned agencies. The respondent ultimately made those payments on or about February 5, 1998.

Charge Seven alleged that the respondent engaged in conduct adversely reflecting on his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (a) (8) (now [7]) (22 NYCRR 1200.3 [a] [7]), by converting funds and failing to maintain a duly-constituted escrow account in breach of his fiduciary duties. Between November 1995 and March 1998, the respondent wrote no fewer than 150 checks payable to cash from his attorney trust account. The respondent used those checks for non-escrow-related purposes.

Charge Eight alleged that the respondent engaged in conduct adversely reflecting on his fitness to practice law, in violation of Code of Professional Responsibility DR 1-102 (a) (8) (now [7]) (22 NYCRR 1200.3 [a] [7]), by converting funds and failing to maintain a duly-constituted escrow account in breach of his fiduciary duties. In or about 1994, the respondent deposited $32,700 into his attorney trust account on behalf of a client named Jeremy Spear. The $32,700 represented the down payment in a real estate transaction that closed on or about January 10, 1995. The respondent disbursed check number 1148 in the amount of $4,578 and check number 1150 in the amount of $27,122, or $31,700, in connection with the Spear closing. He was required to hold the remaining $1,000 in escrow for the repair of windows. He released the $1,000 by check number 1775, payable to Stephen Loifredo, in or about October 1996. The $1,000 was invaded prior to October 1996 by the respondent, who used the funds for personal and/or business purposes. Moreover, the balance in the respondent’s attorney trust ac[132]*132count fell below the amount the respondent was required to hold on behalf of Mr. Spear and was a negative balance on several occasions.

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Cite This Page — Counsel Stack

Bluebook (online)
264 A.D.2d 128, 703 N.Y.S.2d 247, 2000 N.Y. App. Div. LEXIS 2007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-ryan-nyappdiv-2000.