In Re Utz

769 P.2d 417, 48 Cal. 3d 468, 256 Cal. Rptr. 561, 1989 Cal. LEXIS 1102
CourtCalifornia Supreme Court
DecidedMarch 30, 1989
DocketS005651
StatusPublished
Cited by14 cases

This text of 769 P.2d 417 (In Re Utz) is published on Counsel Stack Legal Research, covering California 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 Utz, 769 P.2d 417, 48 Cal. 3d 468, 256 Cal. Rptr. 561, 1989 Cal. LEXIS 1102 (Cal. 1989).

Opinion

Opinion

THE COURT. *

We review the unanimous recommendation of the Re view Department of the State Bar Court that petitioner, Jerome C. Utz, be disbarred from the practice of law. The recommendation is based on petitioner’s conviction of seven counts of mail fraud (18 U.S.C. § 1341) and two counts of using interstate transportation to defraud individuals (18 U.S.C. § 2314).

We placed petitioner on interim suspension, to commence on March 2, 1984, pending the finality of petitioner’s conviction. In July 1986, after petitioner’s conviction was final, we referred the matter to the State Bar for hearing, report and recommendation of the appropriate discipline.

The hearing panel, composed of a single referee, recommended, pursuant to standard 3.3 of the Standards for Attorney Sanctions for Professional Misconduct (Rules Proc. of State Bar, div. V), that petitioner be summarily disbarred under Business and Professions Code section 6102, subdivision (c). 1 The referee also determined that if section 6102, subdivision (c) did not apply, he would still recommend disbarment pursuant to standard 3.2 of the Standards for Attorney Sanctions, which calls for disbarment if the crime involves moral turpitude unless the most compelling mitigating circumstances clearly predominate. The review department unanimously adopted these findings and recommendations.

Petitioner contends that many of the findings and conclusions of the State Bar are erroneous. He contests the State Bar’s recommendation of disbarment. He alleges this court’s decision to place him on interim suspension and the excessive length of the suspension violated his constitutional rights. He also argues that the State Bar violated his Fifth Amendment rights and his right to an impartial hearing. After reviewing the record and petitioner’s objections, we conclude that disbarment is the appropriate discipline, but *474 under section 6102, subdivision (d) rather than section 6102, subdivision (c).

I. Facts

Petitioner was admitted to the State Bar in 1961, and was a deputy attorney general when the events underlying this matter occurred. In 1978, petitioner left the Attorney General’s office and entered private practice until this court suspended him in 1984.

In 1973, the Attorney General’s office assigned petitioner, on a part-time basis, to the Monterey Park Task Force (MPTF). The MPTF was a group of federal, state, and local law enforcement authorities charged with the investigation of prison gangs. While petitioner was assigned to the MPTF, United States Marshal Art Van Court introduced him to David Pedley, a federal informant serving time for various fraud-related crimes in Placer-ville. Petitioner claims that during 1974-1975 Pedley identified various members of prison gangs for him. Petitioner’s supervisors did not authorize him to associate with Pedley or any other federal witness.

In 1976, when Pedley was paroled from state custody, federal authorities approved his relocation in Cameron Park, California under the name of “Wellington.” 2 Wellington and his son formed two companies, Pacific Park Properties (PPP) and Diamond Pacific Realty (DPR), for the purpose of setting up a land sales operation in Cameron Park. An associate of Wellington, Mike Cano, started Cano Construction Company (CCC). Petitioner became involved in this operation, and essentially was a “silent partner” of the business. 3

Wellington and his associates solicited investors for their operation. They made several misrepresentations to them. First, they claimed that the lots they were selling were not burdened with any liens or encumbrances even though they knew all of the lots were subject to substantial liens, many of which were the subject of foreclosure proceedings. Second, Wellington and *475 his associates repeatedly misrepresented their experience in constructing homes. Additionally, PPP, which purportedly owned some of the lots, was eventually found not to have had any interest in them whatsoever. In the meantime, Wellington and his associates diverted funds from the Cameron Park project to unrelated real estate ventures and other private undertakings. They leased several Mercedes automobiles and began to develop a potential television series concerning the federal sensitive witness program. As a result, many investors lost substantial amounts of money. In early 1978, CCC, PPP, and DPR were all forced to declare bankruptcy. 4

In June 1982, after a lengthy investigation, a federal grand jury indicted petitioner, Michael Cano, David Wellington and his son for aiding and abetting nine counts of mail fraud (18 U.S.C. § 1341) and two counts of interstate transportation to defraud (18 U.S.C. § 2314). Following a four-month jury trial, petitioner was convicted on nine of the eleven counts. He was sentenced to three years’ imprisonment concurrently on each count, with imposition of all but six months suspended on condition that he be placed on probation for three years. Petitioner’s conviction was affirmed by the Ninth Circuit. (United States v. Wellington, supra, 754 F.2d 1457, cert. den. 474 U.S. 1032 [88 L.Ed.2d 573, 106 S.Ct 592].)

In addition to the facts underlying the conviction, the State Bar Court made findings of fact with respect to incidents related to the conviction.

1. Petitioner’s Trip to New Jersey

In November 1977, Wellington was to be sentenced for a mail fraud conviction in New Jersey. Fearful that he might be sentenced to prison, he contacted the United States Attorney in New Jersey handling the matter, and requested that he contact petitioner to verify that he was a “cooperating individual” with the Attorney General’s office. Petitioner confirmed that Wellington worked for the California Attorney General’s office and any decision to imprison him would hinder an ongoing investigation.

At the New Jersey sentencing hearing, petitioner appeared in chambers of the presiding federal court judge and was introduced as a deputy attorney general from California. The judge considered placing Wellington on formal probation. Petitioner tried to persuade the judge to place Wellington on informal probation in order to protect his identity. Petitioner stated if Wellington’s identity was revealed, it would compromise an ongoing investigation. The judge sentenced Wellington to time previously served and informal probation.

*476

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Bluebook (online)
769 P.2d 417, 48 Cal. 3d 468, 256 Cal. Rptr. 561, 1989 Cal. LEXIS 1102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-utz-cal-1989.