Mississippi: Lawyer Disbarred for Felony Conviction

Link for opinion: http://scholar.google.com/scholar_case?case=8119683737185704939&q=mississippi+
%2B+%22disciplinary+action%22&hl=en&as_sdt=400000000000002&as_ylo=2010


In The Mississippi Bar v. Castle, 38 So. 3d 632 (Miss 2010), the Mississippi Supreme Court disbarred a lawyer from the state’s bar association following her felony conviction in the United States District Court for the Southern District of Mississippi.

The lawyer was convicted for her involvement in a mortgage-fraud operation in which she, along with twelve others, bought inexpensive real estate through fraudulent acts and then sold the property at inflated prices. Furthermore, the co-conspirators forged documents and inflated financial information so that interested buyers who did not meet loan requirements could acquire financing. The particular lawyer’s role was to handle the loan closings for the initial purchase of the real estate as well as for the resale transactions. She also transferred money between the mortgage company and a co-conspirator and used money to pay buyers for being involved in their scheme.

The operation was uncovered when one of the prospective buyers went to the police. The lawyer was ultimately charged with bank fraud, wire fraud, conspiracy to commit money laundering, conspiracy to commit bank fraud and wire fraud, and submission of false statements. She was convicted of conspiracy to defraud the United States (count 1), frauds and swindles (counts 3-11), and money laundering (count 12). After the verdict, the lawyer was sentenced to forty-eight months for the conspiracy conviction and another forty-eight months for the frauds and swindles conviction, to be served concurrently. She was also sentenced to post-release supervision totally eight years.

Following the conviction, the Mississippi State Bar filed a formal complaint against the lawyer’s violation of Rule 6 of the Rules of Discipline for the Mississippi State Bar, with a copy of the criminal conviction attached. The lawyer did not respond.

Rule 6 states that if a lawyer is convicted of a criminal offense in and any state or federal court a certified copy of the judgment should be filed with the Supreme Court by the Complaint Counsel. Once this is done, the lawyer is immediately suspended from the practice of law. Additionally, once all appeals have been made without reversal the Court will enter an order for disbarment (Rule 6, Rules of Discipline for the Mississippi Bar).

The lawyer had exhausted all appeals and had her conviction affirmed by the appellate court, leaving the Supreme Court with no other option than to disbar her.

Louisiana: Lawyer Disbarred for Tax Fraud and Misrepresentation to Clients

Link for opinion: http://www.lasc.org/opinions/2010/10B0593.pc.pdf

In re Thomas, 38 So. 3d 248 (La. 2010), the Louisiana Supreme Court permanently disbarred a lawyer for repeatedly committing tax fraud and making false statements to clients. This followed the lawyer’s release from a thirty-six month prison term for previous tax evasion and misrepresentation charges.

The Louisiana Supreme Court affirmed that the lawyer was knowingly dishonest to clients and attempted to defraud the government by filing a false tax return and failing to pay taxes. The lawyer also displayed a pattern of misconduct to paying clients and the profession of law. The lawyer violated Louisiana Rules 8.4(b) and (c) of the Rules of Professional Conduct.

The lawyer also failed to pay restitution, and failed to admit to misrepresenting the clients. The court agreed that the lawyer intentionally deceived the Internal Revenue Service and the clients by not abiding by the Louisiana Rules of Professional Conduct and for filing a false tax return in violation of 26 U.S.C. § 7206(1).

This case demonstrates the importance of the lawyer’s duty under Louisiana Rule 8.4(b)(c) that states a lawyer shall not “commit a criminal act especially one that reflects adversely on the lawyer’s honesty, trustworthiness or fitness as a lawyer in other respects.” In addition, the rule states that a lawyer shall not “engage in conduct involving dishonesty, fraud, deceit or misrepresentation.”