In Re Wright

748 A.2d 103, 163 N.J. 133, 2000 N.J. LEXIS 336
CourtSupreme Court of New Jersey
DecidedMarch 17, 2000
StatusPublished
Cited by3 cases

This text of 748 A.2d 103 (In Re Wright) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Wright, 748 A.2d 103, 163 N.J. 133, 2000 N.J. LEXIS 336 (N.J. 2000).

Opinion

*134 PER CURIAM.

This matter arises from a decision of the Disciplinary Review Board (DRB) recommending that respondent William Wright, Jr. be disbarred. The matter came before the DRB on presentment of a Special Master charging respondent with knowing misappropriation of client funds, an event that almost invariably results in disbarment under the rule of In re Wilson, 81 N.J. 451, 409 A.2d 1153 (1979). Our independent review of the record leads us to conclude that disbarment is the appropriate discipline.

Respondent is a sole practitioner who was admitted to the bar in 1961. He maintains an office in South Orange. He has no prior disciplinary history. In December 1998, the Office of Attorney Ethics (OAE) conducted a random audit of his books and records. The audit disclosed that respondent has incomplete and confusing records with multiple trust accounts. As the investigation unfolded, it became apparent that the multiple accounts had served to control a scheme whereby the respondent’s office manager-bookkeeper, Jewels Hightower, moved money among the various trust accounts, respondent’s business accounts, and several accounts of W-K Development Co.(W-K). The bookkeeper admitted that she had moved money from respondent’s trust account to his business account and to the W-K account, sometimes signing respondent’s name without his authorization.

Respondent asserted that W-K was the bookkeeper’s company and denied any involvement in the company or knowledge of any of the company’s transactions. The proofs were clearly and convincingly otherwise. When a deficit arose in the varied accounts, respondent covered an overdraft through a loan in the amount of $58,000 from the National State Bank to W-K for which he signed a note as president of W-K.

A convincing example of respondent’s participation in this scheme arises from a financing matter involving respondent’s clients, the Andersons. The Andersons sought to consolidate their debts and took out a $64,500 mortgage, the proceeds of which went into one of respondent’s trust accounts. Within a month, *135 respondent signed á $27,000 cheek to W-K, allegedly authorized by the Andersons to cover repairs to their home. This check was used to open the W-K account. Respondent then issued a $3,000 cheek to the bookkeeper, Hightower, for “salary.” Hightower then issued four checks to respondent in the amount of $23,000. The fourth check for $17,000 was endorsed by respondent with the notation, “16 Laventhal Avenue, Irvington, NJ,” the address of a property that respondent planned to purchase. In short, respondent knew that the Anderson funds were being used for other purposes. None of the $27,000 had been spent on repairs to the home.

We are thus unable to accept respondent’s argument that he was blinded by affection for and trust in his bookkeeper, Hightower, a woman whom he later married. Before us in briefs and oral argument, respondent’s able counsel have argued that we should allow a remand to explore the troubled state of mind that led respondent to this faith in his bookkeeper. Specifically, the attorneys challenge that part of the DRB’s decision that equates such trust with “willful blindness” that clients’ funds were being invaded. Respondent argues that the citation by the DRB to In re Skevin, 104 N.J. 476, 517 A.2d 852 (1986), is inapposite and does not support the result urged by the DRB. In Skevin, the respondent systematically withdrew from his trust account sums anticipated to be made up from proceeds of cases that had not yet been received. The Court held that Skevin “knew that he was withdrawing clients’ funds from the commingled accounts on each occasion when he drew his own fees or disbursements in advance of receiving settlement cheeks.” Id. at 485, 517 A.2d 852. That, respondent says, is a far cry from being victimized by a beloved employee. Respondent argues that this case fits closely into the pattern of cases in which the Court has found that, in the absence of clear and convincing proof of a knowing misappropriation, the fact that clients’ funds have been invaded does not warrant disbarment. In re Librizzi, 117 N.J. 481, 569 A.2d 257 (1990); In re Gallo, 117 N.J. 365, 568 A.2d 522 (1989); In re James, 112 N.J. 580, 548 A.2d 1125 (1988). In this last case, the attorney had also *136 paid various personal obligations out of his trust account and attributed that to a secretary’s error.

It is true that we do not disbar lawyers who are bad bookkeepers. This is not such a case. The DRB’s report states:

However, as found by the Special Master, the evidence goes beyond willful blindness — it establishes respondent’s complicity in the misappropriations. There is clear and convincing evidence that respondent not only knew of the misappropriations, but that he was an active participant in the misconduct and in the activities undertaken to cover up the misconduct. Two clients testified that respondent asked them to sign false affidavits concerning the use of them funds. One of the clients actually signed the affidavit because respondent was her attorney and told her that he needed the statement. It was clear from her testimony that she did not understand the significance of what she was signing. The other client refused to sign the statement because it was not true.

There is overwhelming evidence that respondent knew that trust funds were being invaded.

We have carefully considered the request of respondent’s counsel that we permit a remand to consider the effect of the emotional state in which respondent found himself. In a long series of cases, we examined the effects of alcohol, In re Hein, 104 N.J. 297, 516 A.2d 1105 (1986); drugs, In re Romano, 104 N.J. 306, 516 A.2d 1109 (1986); sickness, In re Skevin, supra, 104 N.J. 476, 517 A.2d 852; and compulsive gambling, In re Goldberg, 109 N.J. 163, 536 A.2d 224 (1988), as factors that might possibly mitigate the almost invariable disbarment resulting from the knowing misappropriation of clients’ funds. In each instance we found it necessary to disbar attorneys with previously good records whose compulsive conduct, whether due to dependence on drugs, alcohol, or gambling, had contributed to or caused the loss of judgment that led to the misappropriation of clients’ funds.

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Bluebook (online)
748 A.2d 103, 163 N.J. 133, 2000 N.J. LEXIS 336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-wright-nj-2000.