Monday, January 3, 2011
The January 2011 online edition of the California Bar Journal reports an order of discipline:
[An attorney] was suspended for two years, stayed, placed on two years of probation with an actual 90-day suspension and he was ordered to take the MPRE and comply with rule 9.20 of the California Rules of Court. The order took effect May 30, 2010.
[The attorney's] former clients won a judgment against him of almost $425,000 in a case involving fraud, breach of fiduciary duties and legal malpractice. Around the same time, he was going through a divorce and structured a settlement that transferred cash assets of more than $1 million to his wife in exchange for keeping his pension fund, which he considered exempt from judgment. When he told his former clients he did not have the assets to pay the judgment, they filed an involuntary bankruptcy petition against him.
Ultimately, a bankruptcy appellate panel found that transfer of assets was fraudulent, made to avoid collection of the $425,000 judgment. The panel also found circumstantial evidence of “badges of fraud,” including facts that the transfer occurred after a substantial debt was incurred and it rendered [him] insolvent.
[The attorney] stipulated that his actions involved moral turpitude and he failed to report the judgment against him to the State Bar, as required.
In mitigation, [he] has no prior discipline record.