Louisiana State Bar Ass'n v. Noble

568 So. 2d 563, 1990 La. LEXIS 2371, 1990 WL 159696
Supreme Court of Louisiana·Decided October 22, 1990·No. Nos. 89-B-1037, 89-B-1496·Published

Opinion

LEMMON, Justice.*

The Louisiana State Bar Association filed this disciplinary action against one of its members based on the attorney’s federal conviction in Nevada.1

Respondent represented Chival International, Inc., a Nigerian corporation, and Chief Valentine Akponar, the corporation’s managing director. The corporation had obtained the rights to operate a gambling casino at a hotel in Nigeria. The charges against respondent and Joseph O’Rayeh, Chival’s employee who was to manage the casino in Nigeria, related to dealings with two investors who advanced money for the purchase of certain slot machines and slot machine routes and for the operation of the casino.

Respondent was charged in Nevada with one count of conspiracy (1) to cause interstate travel in the execution of a scheme to defraud, (2) to obtain money by mail by means of false representations, and (3) to obtain money by wire by means of false representations, in violation of 18 U.S.C. §§ 2314, 1341 and 1343. A second count of the indictment charged respondent with committing wire fraud in violation of 18 U.S.C. § 1343. Respondent entered a plea of nolo contendere on both counts.

According to the memorandum of plea, O’Rayeh solicited a dentist in Las Vegas in early 1981 to invest in the casino project. The dentist agreed to purchase an interest in the project and to invest funds. On August 21, 1981, the dentist traveled to Louisiana and paid respondent $75,000, which respondent represented would be used to secure gambling rights in Nigeria.

Between August and November, 1981, this investor lent O’Rayeh $370,000 to buy gaming equipment and to operate the casino.

In December, 1981, respondent advised the investor that $75,000 was needed for slot machine routes. On December 14, 1981, the dentist mailed a $40,000 cashier’s check from Las Vegas to respondent in New Orleans. The next day the dentist’s wife wired the remaining $35,000 to respondent in New Orleans. The receipt provided to the dentist by respondent stated the $75,000 would be converted to Nigerian currency and would be deposited in the safe at the hotel. However, when the investor visited the hotel in January of 1982 and asked about the $75,000, respondent returned only about $1,800.

O’Rayeh subsequently obtained $70,000 from the dentist in two payments to purchase slot machines and ship them to Nigeria, but mortgaged or sold all of the machines that he purchased. The casino operation and slot machine route were never begun, and none of the investment of over $500,000 was returned to the dentist.

The second investor, a Nevada woman who was solicited by O’Rayeh in Nevada in April, 1982, entered into a partnership with O’Rayeh. In accordance with her agreement with O’Rayeh she traveled to New Orleans on May 23, 1981 to deliver a cashier’s check for $50,000 to respondent, who told her the investment would be furnished to Chival to pay for a license to operate a slot machine route in Nigeria. Respondent used the funds to purchase nine cashier’s checks payable to himself in the total amount of $41,500 and one check payable to O’Rayeh in the amount of $8,500. On August 10, 1982 the investor sent an additional cashier’s check for $6,000 to respondent, who represented that the money would be used for permits to ship the slot machines out of the country. The investor later paid almost $60,000 to O’Rayeh to purchase and ship slot machines to Nigeria. Her total investment of approximately $115,000 has never been returned.

Both investors made numerous attempts to recover their money, but had little success in contacting O’Rayeh or respondent. [565] However, O’Rayeh sent a telegram to the dentist on June 6, 1983, representing that he would begin making reimbursement.2

Following his plea of nolo contendere, respondent was sentenced on Count I to three months in prison and on Count II to supervised probation for five years on special conditions that he pay a fine of $10,000 and perform 200 hours of community service. Respondent served three months of evenings in a half-way house in New Orleans and performed community service with the New Orleans AIDS Task Force. As of the date of the commissioner’s hearing, he had completed more than half of the 200 hours required by his sentence. He also paid $200 per month to the U.S. Attorney’s Office in compliance with the court’s mandate.

At the hearing before the commissioner, respondent testified that he transmitted to Chief Akponar all of the funds paid by the dentist and did not personally use any of the funds. The record does not disclose what happened to the $41,500 of cashier’s checks that respondent purchased with the second investor’s funds, but he testified that he did not personally receive any of the funds. While he conceded that he did not contest in court the facts set forth in the plea memorandum, he stated that he would have defended the criminal charges in Nevada if he had had the money to do so.

Respondent further testified that the dentist had obtained a default judgment in a civil suit against him in the amount of $500,000, but had subsequently agreed to accept the sum of $100,000, payable in five years. Respondent has already paid the first payment of $10,000 to the dentist.

As to personal history, respondent stated he was a pilot in the Navy for twenty years, having been honorably discharged in 1961. He graduated from law school in 1968, and he practiced from that time until his voluntary suspension.3 At the time of the hearing he was sixty-six years old, married with four children, and received his income from social security, military retirement, and a salary as a paralegal and administrator for several attorneys.

Two formal private reprimands have been issued to respondent prior to this proceeding. In June, 1987, he was reprimanded for his failure to represent his client in a civil matter and for his neglect of a legal matter entrusted to him, in violation of Disciplinary Rule 6-101(A)(3) of the Code of Professional Responsibility. In August, 1988, he was reprimanded for his failure to render an appropriate accounting to clients for the sum of money received by him as an advance payment for legal services, in violation of Disciplinary Rule 9-102(B)(3) of the Code of Professional Responsibility and Rule 1.15(b) of the Rules of Professional Conduct, and for his failure to act with reasonable diligence and promptness in representing a client, failure to keep his client reasonably informed about the status of a matter, and failure to comply with reasonable requests for information, in violation of Disciplinary Rule 6-101(A)(3) of the Code of Professional Responsibility and Rules 1.3 and 1.4 of the Rules of Professional Conduct.

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Louisiana State Bar Ass'n v. Noble, 568 So. 2d 563, 1990 La. LEXIS 2371, 1990 WL 159696 (La. 1990).

568 So. 2d 563 (Louisiana State Bar Ass'n v. Noble) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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