Iowa Supreme Court Attorney Disciplinary Board v. Carroll

721 N.W.2d 788, 2006 Iowa Sup. LEXIS 125, 2006 WL 2707398
CourtSupreme Court of Iowa
DecidedSeptember 22, 2006
Docket06-0587
StatusPublished
Cited by19 cases

This text of 721 N.W.2d 788 (Iowa Supreme Court Attorney Disciplinary Board v. Carroll) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iowa Supreme Court Attorney Disciplinary Board v. Carroll, 721 N.W.2d 788, 2006 Iowa Sup. LEXIS 125, 2006 WL 2707398 (iowa 2006).

Opinion

LAVORATO, Chief Justice.

In this lawyer disciplinary proceeding, we review the Grievance Commission’s recommendation that Rodney T. Carroll’s license to practice law in Iowa be revoked for theft of money entrusted to him. Upon our de novo review, we agree with the Commission’s recommendation.

I. Facts.

We find the following facts. Rodney T. Carroll was admitted to practice in Iowa and began practicing in September 1999. He worked at the O’Connor & Thomas law firm in Dubuque, Iowa. In 2000 he was admitted to practice in Wisconsin.

Carroll served as an adjunct professor at Loras College where he coached the college’s mock trial teams. He held that position until the spring of 2003 when he resigned because of other professional commitments unrelated to these events.

The Dubuque Arts Council (Council) is a nonprofit group that provides educational and entertainment opportunities in the performing arts through the sponsorship of artist residencies. During their residencies, which typically last two weeks, the artists live and perform in the Dubuque area. The artists travel throughout the area school systems bringing into the classrooms arts-based education, which schools typically cannot afford. The Council also sponsors a free summer concert series in the Dubuque Arboretum and other events. Donors and grants support the Council’s activities.

Carroll became involved with the Council in 2000. He initially served on Council committees. In May 2002 Carroll was elected president and was reelected president in May 2003. At the time of Carroll’s reelection, the long-time Council treasurer resigned. Because there was no one to replace him, the treasurer simply turned over the Council’s check book to Carroll, who was an authorized signatory on the account. Later in the month, Carroll took *790 possession of the Council’s credit (debit) card.

Shortly after taking over the treasurer’s duties, Carroll faced a personal budget shortfall. According to Carroll, his expenses were outpacing his income because of poor budget decisions on his part. On June 1, 2003, gas service at Carroll’s home was terminated because he had failed to pay the gas bill on time. Because he was short of cash, Carroll paid the gas bill with the Council’s credit card in the amount of $1131.85.

On June 3 Carroll wrote a check on the Council’s account for $5000, which he deposited into his personal bank account. On June 27 Carroll wrote a check on the Council’s account for $500, which he deposited into his personal bank account. On July 11 Carroll used the Council’s credit card to purchase merchandise for $27.65 from Dubuque Discount Gas, to purchase services for $89.22 from OnStar, and to purchase services for $137.28 from Sheraton Hotels.

On July 14 Carroll wrote a check on the Council’s account for $1500, which he deposited into his personal account. On the same day Carroll used the Council’s credit card to purchase merchandise from a restaurant for $63. On July 15 Carroll wrote a check on the Council’s account for $1000, which he deposited into his personal account.

The amount of these withdrawals and purchases totaled $9449. All of these transactions were without the Council’s knowledge, consent, or authorization. In the months of June and July, Carroll paid Council obligations in the amount of $1500 from his personal account, reducing the total amount of the unauthorized withdrawals and expenditures to $7449.

In July the Council learned of Carroll’s unauthorized use of Council funds. Council representatives and its attorney immediately confronted Carroll about his actions. Carroll ultimately paid back all of the money he had misappropriated. In addition Carroll reimbursed the Council $1255 for the cost of an audit necessitated by his actions. Because of Carroll’s misconduct, the Council received negative publicity causing its fundraising activities to suffer for the next six to eight months.

In July Carroll reported his actions to the Iowa Supreme Court Attorney Disciplinary Board. Carroll was unaware that the Council’s attorney had also reported the matter to the Board. Although Carroll did not report the matter to the Wisconsin Bar Association, a member of his firm did. The Wisconsin Bar Association summarily suspended Carroll’s Wisconsin license, delaying any further action until our decision on this matter.

In August Carroll resigned from his law firm. In October Barnstead International hired him as a regulatory specialist to help the company with its relationship with the Food and Drug Administration. Barn-stead International hired Carroll with full knowledge of his wrongdoing in this matter. Two years later, the company promoted Carroll to manager of the regulatory affairs department. In that position he has a six-person staff reporting to him, and he manages a $400,000 budget.

In February 2004 Carroll was charged with second-degree theft, a class D felony, in violation of Iowa Code sections 714.1(1), 714.1(3), and 714.2(2) (2003). He pled guilty to that charge for which he received a deferred judgment. Carroll was placed on probation for twenty-four months and ordered to complete 100 hours of approved community service.

II. Disciplinary Proceedings.

On November 21, 2005, the Iowa Supreme Court Attorney Disciplinary Board *791 filed a complaint against Carroll. The complaint alleged the foregoing unauthorized transactions as well as the criminal charge and its disposition. As a result of that behavior, the Board alleged that Carroll violated the following provisions of the Iowa Code of Professional Responsibility for Lawyers: DR 1-102(A)(3) (lawyer shall not engage in illegal conduct involving moral turpitude); DR 1-102(A)(4) (lawyer shall not engage in conduct involving dishonesty, fraud, deceit, or misrepresentation); DR 1-102(A)(5) (lawyer shall not engage in conduct that is prejudicial to the administration of justice); and DR 1-102(A)(6) (lawyer shall not engage in any other conduct that adversely reflects on the fitness to practice law).

Carroll did not file an answer to the complaint. His failure serves as an admission of the allegations of the complaint, leaving the Commission with the determination of what sanction is appropriate. See Iowa Ct. R. 36.7 (“If a respondent fails or refuses to file such answer within the time specified, the allegations of the complaint shall be considered admitted, and the matter shall proceed to a hearing on the issue of the appropriate sanction.”).

The Commission heard the matter on March 16, 2006. A Council representative testified. Carroll represented himself and made a statement in which he expressed remorse. He stated that at the time of the unauthorized transactions, he intended to reimburse the Council. He explained that he planned to use funds from the sale of his house to do so.

The Commission concluded that Carroll had violated all of the disciplinary rules as charged and unanimously recommended that Carroll’s license to practice law be revoked without the possibility of reinstatement.

III. Scope of Review.

We review attorney disciplinary cases de novo. Iowa Ct. R. 35.10(1).

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721 N.W.2d 788, 2006 Iowa Sup. LEXIS 125, 2006 WL 2707398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iowa-supreme-court-attorney-disciplinary-board-v-carroll-iowa-2006.