In the Matter of Samuel Williams, Jr

CourtSupreme Court of Georgia
DecidedMarch 20, 2017
DocketS17Y0897
Status200

This text of In the Matter of Samuel Williams, Jr (In the Matter of Samuel Williams, Jr) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In the Matter of Samuel Williams, Jr, (Ga. 2017).

Opinion

300 Ga. 781 FINAL COPY

S17Y0897. IN THE MATTER OF SAMUEL WILLIAMS, JR.

PER CURIAM.

This disciplinary matter is before the Court on the report of a special

master recommending that we accept the petition for voluntary discipline filed

on October 3, 2016, prior to the filing of a formal complaint, by respondent

Samuel Williams, Jr. (State Bar No. 764123), pursuant to Bar Rule 4-227 (b)

(2). In his petition, Williams admits that he violated Rule 8.4 (a) (2) of the

Georgia Rules of Professional Conduct, see Bar Rule 4-102 (d), when in April

2012 in an Alabama state court, he pled guilty to selling unregistered securities

and was sentenced to three to five years on probation.1 Williams, who has been

a member of the Bar since 2003, admits that he was the escrow officer for a

client who offered a high-yield investment program and that, although Williams

did not promote the sale of securities and was not otherwise involved in the

underlying fraud scheme, he was responsible for holding and disbursing the

1 Rule 8.4 (a) (2) says, “It shall be a violation of the Georgia Rules of Professional Conduct for a lawyer to . . . be convicted of a felony.” A conviction for purposes of this rule includes a guilty plea accepted by a court. See Rule 8.4 (b) (1) (i). The maximum sanction for a violation of Rule 8.4 (a) (2) is disbarment. funds associated with the program using his trust account. Williams asserts that

he filed a notice to withdraw upon learning of a criminal investigation of the

program, but admits that he nonetheless subsequently accepted $380,000 from

an investor and then disbursed those funds in February 2010, instead of

reporting the matter to the authorities and holding the money in his trust account

as he should have done.2

Williams self-reported his conviction to the State Bar of Georgia on June

5, 2012, but the Bar did not begin disciplinary proceedings until May 16, 2016.3

After the appointment of the special master, Williams filed an initial petition for

voluntary discipline on July 15, 2016, acknowledging his violation of Rule 8.4

(a) (2) and requesting discipline in the range from a formal admonition to a

public reprimand. However, noting that Williams had been placed on probation

for three to five years and directed to pay $380,000 in restitution, the special

master rejected that petition in an October 3, 2016 order, accepting the Bar’s

argument that a reprimand was not appropriate discipline and that, while a

2 The Alabama prosecutor’s letter discussed further below says that Williams sent the money to the principal fraudster. 3 The State Bar has acknowledged that this delay was the Bar’s fault and notes that the lawyer responsible is no longer employed by the Bar’s Office of General Counsel.

2 suspension could be appropriate discipline, any suspension should last at least

as long as Williams was subject to the criminal court’s jurisdiction. On the

same day that the special master issued his order denying the initial petition,

Williams filed this petition, requesting discipline in the form of a suspension for

as long as he is on probation or otherwise subject to the criminal court’s

jurisdiction.

In mitigation, Williams explains that he was under considerable mental

and emotional stress because of the near-concurrent bankruptcy of his law firm

and diagnosis of his wife with metastatic breast cancer in the fall of 2009; that

he has no prior disciplinary history or criminal record; that he served honorably

in the military for 20 years; that he self-reported his conviction to the

disciplinary authorities and has been cooperative; that his failure to register the

securities was negligent and unintentional; that his failure to reject or secure the

$380,000 was negligent and without a selfish motive; that he is sincerely

remorseful; that he has attempted to improve his own understanding of the law

and to help others avoid the mistakes he made; and that he has complied with all

of the terms of his probation. Williams also asserts that the nearly four-year

delay between his self-reporting of the violation and the petition for

3 appointment of a special master should be considered in mitigation.

Additionally, the Alabama prosecutor sent a letter to the Bar saying that

Williams was inexperienced, distressed because of his wife’s illness, and

extremely remorseful, and that the trial judge concluded that Williams’s

involvement in the criminal scheme was minimal.

In its response, the State Bar pointed out that, contrary to Williams’s

assertion of an unintentional mistake, his guilty plea required that he knowingly

dealt in unregistered securities4 and that there was no assertion on Williams’s

part that he has paid the $380,000 restitution amount or that he would do so by

the likely end of his time on probation.5 On October 30, 2016, the special

master held a hearing at which Williams and his wife appeared and discussed his

background, his conduct in the underlying matter, and his remaining obligations.

4 Williams pled guilty to a violation of Alabama Code § 8-6-3 (a), which says: “It is unlawful for any person to transact business in this state as a dealer or agent for securities unless he or she is registered under this article. It is unlawful for any dealer or issuer to employ an agent unless the agent is registered.” See also Bayhi v. State, 629 S2d 782, 789 (Ala. Crim. App. 1993) (explaining that to prove a violation of § 8-6-3 (a), “the state [must] prove that the defendant acted willfully in the sense that he was aware of what he was doing”). 5 The Bar acknowledged that Williams had asserted that he was informed by Alabama authorities that the State would consider waiving the balance of restitution, provided he complied with the other provisions of his probation. The special master noted that there is no definitive proof that Williams’s probation will end without his having paid the balance of the restitution owed but also notes that the repayment obligation — set at payments of $250 per month — does not appear calculated to ensure full repayment of the amount owed.

4 On January 9, 2017, the special master issued his report. The special

master considered the mitigating factors offered by Williams and noted that

although Williams was entitled to have the delay in the disciplinary proceedings

considered as a mitigating factor, he had benefitted from the delay by not being

suspended since his 2012 conviction. The special master recommended that this

Court accept Williams’s petition for a suspension concurrent with his probation.

Based upon our review of the existing record, we do not believe that the

proposed suspension is sufficient discipline. Williams has represented that his

probation will end in April 2017, meaning that he would be suspended from the

practice of law for only about a month from now. Although the Alabama

prosecutor indicated in his letter that Williams’s involvement in the criminal

scheme was minimal, the prosecutor also explained that Williams, “while not

initially aware of [the] fraudulent activity, . . . should have abandoned his role

earlier than he did after receiving complaints from the victims.” Moreover,

Williams’s criminal conduct directly involved his law practice. In fact, the

prosecutor explained that by using his trust account to hold and disburse funds

as part of the fraudulent scheme, Williams received $6,066.26 in legal fees. In

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