OLR v. Jesse Jon Johansen

2020 WI 32
Wisconsin Supreme Court·Decided April 9, 2020·No. 2018AP002416-D·Published

Opinion

2020 WI 32

SUPREME COURT OF WISCONSIN CASE NO.: 2018AP2416-D COMPLETE TITLE: In the Matter of Disciplinary Proceedings Against Jesse Jon Johansen, Attorney at Law:

Office of Lawyer Regulation, Complainant,

v.

Jesse Jon Johansen,

Respondent.

DISCIPLINARY PROCEEDINGS AGAINST JOHANSEN

OPINION FILED: April 9, 2020 SUBMITTED ON BRIEFS: ORAL ARGUMENT:

SOURCE OF APPEAL:

COURT:

COUNTY:

JUDGE:

JUSTICES:

CONCURRED:

DISSENTED:

NOT PARTICIPATING:

ATTORNEYS:

2020 WI 32

NOTICE

This opinion is subject to further editing and modification. The final version will appear in the bound volume of the official reports.

No. 2018AP2416-D

STATE OF WISCONSIN : IN SUPREME COURT

In the Matter of Disciplinary Proceedings Against Jesse Jon Johansen, Attorney at Law:

Office of Lawyer Regulation, FILED Complainant, APR 9, 2020 v. Sheila T. Reiff Clerk of Supreme Court

Jesse Jon Johansen,

Respondent.

ATTORNEY disciplinary proceeding. Attorney's license suspended.

¶1 PER CURIAM. We review the report of Referee Robert E.

Kinney recommending that the court suspend Attorney Jesse J. Johansen's license to practice law in Wisconsin for six months. The referee also recommends that Attorney Johansen make restitution and that he be ordered to pay the full costs of this disciplinary proceeding, which are $5,253.95 as of December 23, 2019. The referee issued his report after Attorney Johansen and

the Office of Lawyer Regulation (OLR) entered into a stipulation whereby Attorney Johansen admitted to 18 counts of misconduct

arising out of four client matters. Neither party has appealed from the referee's report and recommendation, and we review the matter under Supreme Court Rule (SCR) 22.17(2).

¶2 After careful review of the matter, we agree that Attorney Johansen's professional misconduct warrants a six-month suspension. We also agree that Attorney Johansen should bear the full costs of this proceeding and that he should pay restitution.

¶3 Attorney Johansen was admitted to practice law in Wisconsin in 2008. His address listed with the State Bar of Wisconsin is in Superior, Wisconsin. He has no prior disciplinary history.

¶4 On October 9, 2018, Attorney Johansen's license to practice law in Wisconsin was suspended pursuant to SCR 22.03(4) for his willful failure to cooperate with the OLR's grievance investigation. On October 31, 2018, the State Bar of Wisconsin suspended Attorney Johansen's law license for failure to pay State Bar dues and failure to certify trust account information. On

June 5, 2019, Attorney Johansen's law license was suspended for failure to comply with continuing legal education requirements.

His law license remains suspended.

¶5 On December 20, 2018, the OLR filed a complaint against Attorney Johansen alleging nine counts of misconduct. Attorney Johansen did not file an answer to the complaint. The referee was appointed on April 1, 2019.

¶6 On June 27, 2019, the OLR filed an amended complaint

adding an additional nine counts of misconduct. Attorney Johansen did not file an answer to the amended complaint. At a scheduling

conference in August 2019, Attorney Johansen indicated he would not be contesting the allegations contained in the amended complaint but that he would be contesting the OLR's request for a six-month license suspension, as well as the request for restitution on behalf of some of his former clients.

¶7 At a hearing on October 17, 2019, the parties presented a stipulation whereby Attorney Johansen pled no contest to all 18 counts of misconduct alleged in the amended complaint.

¶8 The referee issued his report and recommendation on December 11, 2019. Based on the stipulated facts in the amended complaint, the referee found that there was a factual basis to find that the OLR satisfied its burden of proof with respect to all of the counts of misconduct alleged in the amended complaint.

¶9 The first nine counts of misconduct alleged in the amended complaint arose out of trust account violations that occurred during the course of Attorney Johansen's representation of E.K. An overdraft notice from National Bank of Commerce in

Superior, Wisconsin, concerning Attorney Johansen's trust account prompted an OLR investigation. The investigation showed that in

August 2014, Attorney Johansen began representing E.K. in a personal injury case. Attorney Johansen failed to reduce the contingent fee agreement to writing.

¶10 On October 4, 2016, there was a zero balance in Attorney Johansen's trust account. Attorney Johansen settled E.K.'s case for $7,500 but failed to provide E.K. with written notice that the

funds had been received. Attorney Johansen gave E.K. $1,000. On October 5, 2016, Attorney Johansen deposited $6,500 into his trust

account from the settlement proceeds. The only funds in the trust account at that time were attributable to E.K.

¶11 E.K. had instructed Attorney Johansen to remit the net proceeds of the settlement to Attorney Richard Gondik after Attorney Johansen's fees and costs were paid in order to pay attorney fees owed to Attorney Gondik in an unrelated matter. Attorney Johansen's one-third contingent fee was $2,500, and he claimed an additional $1,250 in costs. Attorney Johansen was therefore potentially owed a total of $3,750, leaving net proceeds of $2,750 to be paid to Attorney Gondik.

¶12 Between October 6 and October 11, 2016, Attorney Johansen made four separate cash withdrawals totaling $3,750 from his trust account. Attorney Johansen asserted this payment was for his fees and expenses. He maintained no records showing the specifics of the withdrawals and failed to maintain any required trust account records.

¶13 Attorney Johansen did not promptly distribute $2,750, or

any other amount, to Attorney Gondik from the settlement proceeds held in trust. On October 17, 2016, Attorney Johansen improperly

deposited $2,350 of earned fees into his trust account via a check from the State of Wisconsin.

¶14 Between October 17 and October 24, 2016, Attorney Johansen made five separate cash withdrawals from his trust account totaling $2,100, leaving a balance of $3,000 in the account. Attorney Johansen maintained no records showing the specifics of those withdrawals.

¶15 On October 27, 2016, Attorney Johansen improperly made a $1,650 cash deposit into the trust account, and then proceeded to make four separate cash withdrawals totaling $3,250. As of that date, the balance in the trust account was $1,400; the $2,750 owed to Attorney Gondik had not been paid; and Attorney Johansen had drawn down the trust account balance to less than the amount that should have been held from the E.K. settlement.

¶16 On November 16, 2016, Attorney Johansen improperly deposited additional earned fees via a check from the state public defender into his trust account. After receiving cash back, that left a trust account balance of $2,550.

¶17 In February 2017, Attorney Johansen gave Attorney Gondik a cashier's check for $2,500. The distribution to Attorney Gondik should have been made with a trust account check.

¶18 Attorney Johansen did not provide E.K. with a written accounting of the final distribution of the settlement proceeds from his trust account.

¶19 On May 31, 2018, the OLR sent Attorney Johansen a letter, via first class and certified mail, requesting supplemental

written information regarding his trust account. The first class letter was not returned as undeliverable. The receipt for the certified letter was returned to the OLR on June 12, 2018, with an illegible signature and was undated. Attorney Johansen failed to respond to the OLR's letter.

¶20 The OLR filed a motion with this court requesting that

Attorney Johansen show cause why his law license should not be temporarily suspended for his failure to cooperate in the OLR's

investigation. Attorney Johansen did not respond. On October 9, 2018, this court suspended Attorney Johansen's license to practice law in Wisconsin.

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