Iowa Supreme Court Attorney Disciplinary Board v. David L. Leitner

CourtSupreme Court of Iowa
DecidedDecember 8, 2023
Docket23-0099
StatusPublished

This text of Iowa Supreme Court Attorney Disciplinary Board v. David L. Leitner (Iowa Supreme Court Attorney Disciplinary Board v. David L. Leitner) 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.

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Iowa Supreme Court Attorney Disciplinary Board v. David L. Leitner, (iowa 2023).

Opinion

IN THE SUPREME COURT OF IOWA

No. 23–0099

Submitted September 13, 2023—Filed December 8, 2023

IOWA SUPREME COURT ATTORNEY DISCIPLINARY BOARD,

Appellee,

vs.

DAVID L. LEITNER,

Appellant.

On appeal from the report of the Iowa Supreme Court Grievance

Commission.

In an attorney disciplinary action, the grievance commission recommends

revocation of an attorney’s license for violations of ethical rules. LICENSE

SUSPENDED. May, J., delivered the opinion of the court, in which all justices joined.

David L. Brown of Hansen, McClintock & Riley, Des Moines, for appellant.

Tara van Brederode and Alexis W. Grove, Des Moines, for appellee. 2

MAY, Justice. David Leitner has held a license to practice law in Iowa since 1979. In

2022, the Iowa Supreme Court Attorney Disciplinary Board (Board) filed a five-

count complaint against Leitner. The complaint charged Leitner with numerous

violations of the Iowa Rules of Professional Conduct. Leitner did not file an

answer. Because Leitner did not answer, the Iowa Supreme Court Grievance

Commission (commission) deemed the allegations of the complaint to be

admitted. Based on those admissions and some additional evidence presented

at a hearing, the commission concluded that Leitner had violated several rules.

As a sanction for those violations, the commission recommends that we should

revoke Leitner’s license.

We have carefully reviewed the commission’s recommendation and the

record as a whole. Following our review, we conclude that the Board proved that

Leitner violated numerous rules. In light of those violations, as well as the

aggravating and mitigating factors shown in the record, we conclude that the

proper sanction is a suspension of Leitner’s license for two years. This

suspension will commence ten days from the date of this opinion. Iowa Ct. R.

34.23(1).

I. Our Review.

We review de novo the record made before the commission. Iowa Sup. Ct.

Att’y Disciplinary Bd. v. Johnson, 988 N.W.2d 399, 406 (Iowa 2023). Through

that review, we must determine whether the Board has proven each “alleged

violation[] . . . by a convincing preponderance of the evidence.” Id. (quoting Iowa

Sup. Ct. Att’y Disciplinary Bd. v. Aeilts, 974 N.W.2d 119, 125 (Iowa 2022)). We

make this determination even where—as here—the responding attorney has

essentially admitted the Board’s allegations through the attorney’s failure to 3

answer. See Iowa Sup. Ct. Att’y Disciplinary Bd. v. O’Brien, 971 N.W.2d 584, 589

(Iowa 2022).

With that said, because Leitner did not answer the complaint, “we deem

the factual allegations . . . in . . . the complaint admitted” for purposes of our

review. Iowa Sup. Ct. Att’y Disciplinary Bd. v. Moonen, 706 N.W.2d 391, 396 (Iowa

2005) (emphasis added). In light of those admissions, we find the facts alleged in

the complaint are established by a convincing preponderance of the evidence.

But we do not necessarily adopt legal conclusions stated in the complaint.

II. Merits.

A. Mitchell and Foodprairie (Count I).

1. Background. In count I of the complaint, the Board alleges that Leitner

violated two of our rules through his involvement with a client named Marvin

Mitchell and an entity known as Foodprairie, L.L.C. Specifically, the Board

claims that Leitner violated rules 32:1.2(d), which prohibits lawyers from

“counsel[ing] a client to engage, or assist[ing] a client, in conduct that the lawyer

knows is criminal or fraudulent,” and 32:8.4(c), which prohibits lawyers from

“engag[ing] in conduct involving dishonesty, fraud, deceit, or misrepresentation.”

Iowa Rs. of Prof’l Conduct 32:1.2(d), 32:8.4(c). As support for these charges, the

Board alleges in its complaint the following facts, which we deem to be admitted:

3. Leitner has long served as the attorney for an individual named Marvin Mitchell, representing him in various matters since at least 2004.

4. Mitchell has been involved in the farming industry for several decades. Mitchell’s business has involved the sale and distribution of seed.

5. In or around 2007, Mitchell was indicted for bankruptcy fraud in federal court and was subsequently sentenced to 18 months in prison. Mitchell pled guilty to concealing assets by creating various business entities and then transferring funds, land, 4

equipment, and other assets to those entities prior to declaring bankruptcy.

6. Mitchell owes substantial sums of money to the federal government and, as a consequence, any income he receives is potentially subject to garnishment by federal authorities. Mitchell owes approximately $71,000.00 to the United States Department of Agriculture and also has several federal tax liens against his home.

7. On or about March 27, 2013, Leitner filed a certificate of organization with the Iowa Secretary of State creating a limited liability company known as Foodprairie, L.L.C. (“Foodpra[i]rie”).

8. In subsequent biennial reports filed by Leitner, he describes himself as the “managing member” of Foodprairie.

9. Foodprairie was created by Leitner as part of a deliberate scheme to hide Mitchell’s funds from creditors, including the federal government.

10. On or about November 28, 2016, Leitner opened a bank account for Foodprairie at Central Bank in Iowa. In the account agreement Leitner signed when opening the account, he described Foodprairie as a “single-member LLC.” Leitner further certified that he was the “manager or designated member” of Foodprairie.

11. Upon information and belief, Mitchell has continued to work in the farming industry since his criminal conviction and has received income from that work. At least part of that income has been concealed using the Foodprairie business entity and bank account established by Leitner.

12. Mitchell’s work in the farming industry since his conviction has included the sale of seed. In or around March of 2017, Mitchell entered into a contract to become a dealer of Pfister Seed[s] (“Pfister”) products. Eric Schweinefus, a Pfister employee at that time, knew Mitchell from previous business dealings and approached Mitchell about becoming a Pfister dealer.

13. Mitchell told Schweinefus that he wanted to become a Pfister dealer but said that he did not want his own name associated with the Pfister dealership. Mitchell told Schweinefus that his lawyer, Leitner, could help establish the Pfister dealership without using Mitchell’s name.

14. Schweinefus provided Mitchell with a copy of Pfister’s standard dealership agreement. 5

15. The dealership agreement was later signed by Leitner. The completed dealership form listed Foodprairie as the dealer and Leitner as Foodprairie’s “sole member.” Mitchell’s name does not appear on the form. The completed dealership agreement form was subsequently sent to Jim Riefenrath, an Assistant General Manager for Pfister.

16. Upon receiving the dealership agreement, Riefenrath was initially confused, as he had previously been told by Schwein[e]fus that the dealership agreement would be between Pfister and Mitchell.

17. Riefenrath subsequently participated in a telephone conference call with both Mitchell and Leitner. During the call[,] Leitner indicated that Foodprairie was his company. Leitner and Mitchell both agreed that Mitchell’s dealership agreement with Pfister should be in Foodprairie’s name.

18.

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Related

Iowa Supreme Court Attorney Disciplinary Board v. Rickabaugh
728 N.W.2d 375 (Supreme Court of Iowa, 2007)
Iowa Supreme Court Attorney Disciplinary Board v. Moonen
706 N.W.2d 391 (Supreme Court of Iowa, 2005)
Iowa Supreme Court Attorney Disciplinary Board v. Michael J. Cross
861 N.W.2d 211 (Supreme Court of Iowa, 2015)
Iowa Supreme Court Attorney Disciplinary Board v. David A. Morse
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Iowa Supreme Court Attorney Disciplinary Board v. Bruce A. Willey
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Iowa Supreme Court Attorney Disciplinary Board v. David L. Leitner, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iowa-supreme-court-attorney-disciplinary-board-v-david-l-leitner-iowa-2023.