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2 attorneys suspended over real estate deal

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Indiana Lawyer Disciplinary Actions

Two attorneys have been suspended by the Indiana Supreme Court for their representation of a client in a real estate contract in which one of the attorneys had a financial interest.

In the combined disciplinary action released today, In the matter of: Jeffrey S. Rasley and In the Matter of: David M. Wood, Nos. 49S00-0808-DI-468, -467, Jeffrey Rasley and David Wood worked together in the same firm. A "seller" in the business of rehabbing and selling distressed real estate sold some property to the "buyer" he met through a third party in 2002. That third party brought Rasley into the transaction when the buyer borrowed $11,500 from Rasley to improve the property. The buyer signed a note for repayment, which was secured by a second mortgage on the property. The seller signed a mortgage on the property which held the seller and buyer liable in case of default.

The buyer fell behind on payments and Rasley had his law partner, Wood, send a letter to the buyer and seller saying Rasley would foreclose the property if the debt wasn't repaid. Rasley later said he wouldn't foreclose if a monthly interest payment was made to him. The seller interpreted this to mean that the seller was responsible for the payment since the buyer had no money.

Then the seller asked Wood about hiring his firm to represent him in a dispute with the buyer over the property because he thought Rasley would refrain from asserting his claim against him. Rasley attempted to resolve conflicts between himself and the seller; the two agreed the seller would assume the buyer's obligation to Rasley and they could jointly sue the buyer if necessary. The seller was never informed that he could consult outside counsel about the agreement.

In 2004, Rasley sent a letter demanding the seller pay the firm's attorney's fees, and acknowledge his priority on the lien of the property, or else he'd sue. The seller eventually agreed to settle the case by paying Rasley $15,600.

The Supreme Court unanimously found Rasley violated Professional Conduct Rule 1.7(b) based on his representation of the seller, and that Wood violated Rule 1.7(a) for his representation of both Rasley and the seller. Rasley and Wood lacked insight into their misconduct and expressed no remorse for it, the per curium opinion stated. The justices concluded Rasley didn't intentionally harm the seller and worked diligently to help him gain control of the property. Neither respondent has any disciplinary history.

Rasley will be suspended 120 days without automatic reinstatement and Wood will be suspended 30 days with automatic reinstatement because of his lesser role in the misconduct and his junior position to Rasley in experience and within the firm. The suspensions begin Jan. 22, 2010.

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  1. Can I get this form on line,if not where can I obtain one. I am eligible.

  2. What a fine example of the best of the Hoosier tradition! How sad that the AP has to include partisan snark in the obit for this great American patriot and adventurer.

  3. Why are all these lawyers yakking to the media about pending matters? Trial by media? What the devil happened to not making extrajudicial statements? The system is falling apart.

  4. It is a sad story indeed as this couple has been only in survival mode, NOT found guilty with Ponzi, shaken down for 5 years and pursued by prosecution that has been ignited by a civil suit with very deep pockets wrenched in their bitterness...It has been said that many of us are breaking an average of 300 federal laws a day without even knowing it. Structuring laws, & civilForfeiture laws are among the scariest that need to be restructured or repealed . These laws were initially created for drug Lords and laundering money and now reach over that line. Here you have a couple that took out their own money, not drug money, not laundering. Yes...Many upset that they lost money...but how much did they make before it all fell apart? No one ask that question? A civil suit against Williams was awarded because he has no more money to fight...they pushed for a break in order...they took all his belongings...even underwear, shoes and clothes? who does that? What allows that? Maybe if you had the picture of him purchasing a jacket at the Goodwill just to go to court the next day...his enemy may be satisfied? But not likely...bitterness is a master. For happy ending lovers, you will be happy to know they have a faith that has changed their world and a solid love that many of us can only dream about. They will spend their time in federal jail for taking their money from their account, but at the end of the day they have loyal friends, a true love and a hope of a new life in time...and none of that can be bought or taken That is the real story.

  5. Could be his email did something especially heinous, really over the top like questioning Ind S.Ct. officials or accusing JLAP of being the political correctness police.

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