Thursday, October 14, 2010
The New York Appellate Division for the First Judicial Department has accepted the resignation of an attorney who was the subject of a client complaint alleging of misappropriation of around $1.4 million of entrusted funds.
The court reviwed the recommendation of the Departmental Disciplinary Committee:
The Committee states that respondent's affidavit of resignation complies with the requirements under section 603.11 in that respondent acknowledges that there is a pending disciplinary investigation against her based on allegations of professional misconduct, that if charges were brought based upon the misconduct under investigation, she could not successfully defend herself on the merits, that she has submitted her resignation freely, voluntarily and without coercion or duress, and that she is fully aware of the implications of submitting her resignation, to wit, that her name will be stricken from the roll of attorneys. In that affidavit, respondent avers that she was retained by [the client] to create a trust; that she became a co-trustee, and that between 1998 and 2009 she intentionally misappropriated approximately $1,400,000 of her client's funds. Respondent disclosed her misconduct to [the client] in early October 2009 after there was some inquiry about unauthorized transactions and shortly thereafter, she signed a Confession of Judgment for $1,400,000. Respondent further states that there is a continuing audit in progress to determine the exact amount of the misappropriations; and that she has not misappropriated any other client funds and is not currently holding any other client or third party funds in any trust or bank account in her name or under her control except advanced legal fees to be taken when earned.
As a result of the resignation, the attorney is struck from the roll of attorneys. (Mike Frisch)