Thursday, October 13, 2022

Goodness And Mercy

The Pennsylvania Supreme Court has reciprocally disbarred an attorney based on misconduct found by the New York Second Department,

The New York disbarment order sets out the attorney's business dealings with an estate client

During the January 13, 2013, meeting, the respondent told [the widow] Drewes she needed $35,000 to save the Northeast Christian Bookstore (hereinafter the bookstore) from foreclosure. The respondent and her sister, Mary Gilliam, are the sole shareholders of Goodness and Mercy, Inc. (hereinafter Goodness and Mercy), which owns the bookstore. Home Loan Investment Bank had obtained a judgment of foreclosure against Goodness and Mercy, however, Goodness and Mercy filed for bankruptcy in an attempt to permit the bookstore to continue operating and avoid foreclosure. Drewes agreed to lend the respondent the $35,000. On or about January 14, 2013, the respondent received from Drewes a bank check for $35,000, payable to "Harriet Gilliam." At the time the respondent received the $35,000 from Drewes, she had neither discussed with Drewes the terms of the loan, nor had she memorialized in writing the terms or the existence of the loan. On or about March 11, 2013, the respondent filed a petition for probate for the estate of Peter Drewes with the Suffolk County Surrogate's Court.

In or about March 2013, the respondent told Drewes she needed an additional $65,000 to save the bookstore from foreclosure. Drewes agreed to lend the respondent the $65,000. On or about March 14, 2013, the respondent received from Drewes a bank check for $65,000, payable to "Harriet Gilliam." At the time the respondent received the $65,000 from Drewes, she had neither discussed with Drewes the terms of the loan, nor had she memorialized in writing the terms or the existence of the loan.

Within two weeks of her receipt of the $65,000 bank check, the respondent told Drewes she needed an additional $50,000 to save the bookstore from foreclosure. Drewes agreed to lend the respondent the $50,000. On or about March 27, 2013, the respondent received from Drewes a bank check for $50,000, payable to "Mary Gilliam." At the time the respondent received the $50,000 from Drewes, she still had not discussed with Drewes the terms of the loans, now totaling $150,000, nor had she memorialized in writing the terms or the existence of the loans.

On or about May 9, 2013, letters testamentary were issued to Drewes in connection with the estate of Peter Drewes. Thereafter the respondent continued to assist Drewes with issues involving the estate.

In or about May 2013, the respondent told Drewes she needed an additional $20,000 to save the bookstore from foreclosure. Drewes agreed to lend the respondent the $20,000. On or about May 31, 2013, the respondent received from Drewes a bank check for $20,000, payable to "Mary Gilliam." In or about August 2013, the respondent told Drewes she needed an additional $35,000 to save the bookstore from foreclosure. Drewes agreed to lend the respondent the $35,000. On or about August 23, 2013, the respondent received from Drewes a bank check for $35,000, payable to "Mary Gilliam."

In or about October 2013, the respondent told Drewes she needed an additional $7,500 to save the bookstore from foreclosure. Drewes agreed to lend the respondent the $7,500. On or about October 19, 2013, the respondent received from Drewes a bank check for $7,500, payable to "Mary Gilliam." At the time the respondent received these additional funds from Drewes, she did not discuss with Drewes the terms of the loans, now totalling $212,500, nor did she memorialize in writing the terms or the existence of the loans.

At no time between January 2013 and October 2013, did the respondent advise Drewes of the desirability of seeking the advice of independent counsel regarding the loans. Drewes requested a writing from the respondent memorializing the loans totaling $212,500. Despite Drewes's request, the respondent failed to memorialize in writing the terms or existence of the loans totaling $212,500. Drewes asked the respondent to execute a document she prepared acknowledging the loans totaling $212,500. The respondent declined to execute the document Drewes presented to her. To date, the respondent has paid Drewes $500 toward repayment of the $212,500 loaned.

(Mike Frisch)

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Comments

Thanks for sharing this post with us very interesting post keep sharing

Posted by: Belli Weil Grozbean P.C. | Oct 13, 2022 11:23:42 PM

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