Matter of Surgent

518 A.2d 215, 104 N.J. 566, 1986 N.J. LEXIS 1257
CourtSupreme Court of New Jersey
DecidedDecember 11, 1986
StatusPublished
Cited by11 cases

This text of 518 A.2d 215 (Matter of Surgent) 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
Matter of Surgent, 518 A.2d 215, 104 N.J. 566, 1986 N.J. LEXIS 1257 (N.J. 1986).

Opinion

PER CURIAM.

This disciplinary proceeding arose from a motion filed by the Office of Attorney Ethics (OAE) before the Disciplinary Review Board (DRB), seeking final discipline of respondent, John W. Surgent, II, pursuant to Rule 1:20-6. The motion was based on respondent’s criminal conviction in this State of conspiracy to commit theft by deception, contrary to N.J.S.A. 2C:5-2 and 2C:20-4, and his conviction in the U.S. District Court, Southern District of New York, of 14 felony offenses that included conspiracy, stock fraud, sale of unregistered securities, and subornation of perjury, contrary to 15 U.S.C. § 77e, 77x, 78j(b) and 78ff; 17 C.F.R. § 240, 10b-5; and 18 U.S.C. § 1341, 1343, 371, 1622 and 2.

The DRB recommended that respondent be disbarred. Our independent review of the record leads us to accept that recommendation.

*568 I

The DRB summarized the relevant facts as follows:

Respondent, who was admitted to the Bar in 1967, was suspended from the practice of law on May 30, 1979 for improper execution of jurats, improper involvement in a business transaction concerning a client and conflict of interest in representing a corporation. [In re Surgent ] 79 N.J. 529 (1979). While his petition for reinstatement was pending before this Board in early 1980, a Sussex County Grand Jury returned indictment I — 86—79—J which charged him with obtaining money under false pretenses (Count 1, N.J.S.A. 2A:111-1) and with making a false statement (Count 2, N.J.S.A. 2A:111-8). The Board on March 19, 1980, denied the petition for reinstatement until the resolution of these criminal charges. While this indictment was pending, a federal grand jury handed up a 16-count indictment against Respondent and another individual. Respondent was charged in 14 counts with conspiracy (Count 1); selling unregistered securities (Count 2 through 7); securities fraud (Count 9 through 11); mail fraud (Count 12 and 13); wire fraud (Count 15) and subornation of perjury (Count 16). The indictment charged Respondent and his co-defendant with engaging in a criminal conspiracy to enrich themselves at the expense of the investing public and shareholders of World Gambling Corporation, a company which they controlled. The indictment alleged they unlawfully traded in company stock, misappropriated corporate assets and issued false and materially misleading statements to shareholders. The two were also charged with attempting to obstruct a Securities and Exchange Commission investigation into the company by suborning perjury. A jury convicted Respondent of all 14 counts on March 19, 1982. He was sentenced on June 9, 1982, to a total of ten years in prison. In imposing the sentence, the court noted:
There was a deliberate, elaborate scheme carried out with various mechanisms to acquire small businesses which were vulnerable in unfortunate positions. The scheme involved holding out to these people that these businesses would be given financial infusions, would be given superior management, and therefore have a chance of survival.
Instead, these businesses were simply used as a vehicle for looting what small amount of assets remained, so Mr. Surgent and his co-schemers simply put their hands in the pockets of these little companies and robbed them of whatever was left.
I could hardly imagine a more cynical, a more dishonorable, more dangerous kind of fraudulent conduct.
The judgment of conviction was affirmed by the U.S. Court of Appeals for the second circuit in an unpublished opinion filed January 4, 1983. The United States Supreme Court denied certiorari on April 18, 1983. [Surgent v. United States, 460 U.S. 1086, 103 S.Ct. 1779, 76 L.Ed.2d 349 (1983).]
A Passaic County Grand Jury returned indictment 0162-83B against Respondent and another individual. Respondent was charged with conspiracy (Count 1) and seven counts of theft by deception (Count 8, 14-17, 21 and 24). Respondent was charged with involvement in a scheme between July 1980 and *569 May 1981 whereby he and his co-defendant falsely guaranteed financing in return for certain fees which would be refunded if financing was not obtained. On October 5, 1983, Respondent pleaded guilty to Count 1, in which he admitted obtaining $500 with a codefendant by falsely representing that financing would be obtained or the money refunded. A condition of the plea agreement was that Respondent make restitution of $52,675 to 25 victims. He was sentenced on October 19, 1983 and given a suspended sentence conditioned upon payment of a balance of $27,675 by April 19, 1984. This condition was later met by Respondent. At this time, the Sussex County indictment and a Camden County accusation, which charged Respondent with theft by failure to make required disposition of property received, were dismissed pursuant to the plea agreement. He is serving his federal prison sentence in Florida.

Upon a review of the full record, the DRB concluded there was clear and convincing evidence of respondent’s unethical conduct. We have independently reviewed the record and reach, the same conclusion.

II

Respondent stands convicted of a battery of serious federal crimes including conspiracy and fraud. Additionally, he entered a plea of guilty in New Jersey to conspiracy to commit theft by deception, in return for which a number of pending state criminal charges were dismissed.

A criminal conviction of an attorney is conclusive evidence of guilt in a disciplinary proceeding. R. 1:20 — 6(b)(1); In re Kushner, 101 N.J. 397, 400 (1986); In re Infinito, 94 N.J. 50, 56 (1983); In re Rosen, 88 N.J. 1, 3 (1981). The extent of final discipline to be imposed is thus the sole issue to be determined. R. 1:20 — 6(b)(2)(ii). In determining the appropriate discipline, we consider the nature and severity of the crime and whether the crime is related to the practice of law. Moreover, we examine respondent’s good reputation, prior trustworthy professional conduct, and general good character. In re Kushner, supra, 101 N.J. at 401.

Respondent’s federal and state convictions mandate disbarment. Respondent’s actions for self-enrichment with regard to World Gambling Corporation as well as with regard to the *570 mortgage guarantee business may both be analogized to conspiracy and insurance fraud cases. Convictions of New Jersey attorneys on charges of insurance fraud and conspiracy to commit insurance fraud have regularly resulted in the attorneys’ disbarment. In re Marcus, 63 N.J. 240 (1973); In re Toplitt, 63 N.J. 240 (1973); In re Zwillman, 61 N.J. 181 (1972); In re Yormark, 60 N.J. 175 (1972); In re Perwin, 60 N.J. 174 (1972);

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Bluebook (online)
518 A.2d 215, 104 N.J. 566, 1986 N.J. LEXIS 1257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-surgent-nj-1986.