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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. Payday loans take advantage of people in many ways. It's great to hear that the courts are using some of their sins to pay money back to the community. Hopefully this will help change the culture of many loan companies, and make lending a much safer endeavor for those in need. http://lawsuitlendingnow.com/lawsuit-loans-post-settlement.html

  2. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  3. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  4. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  5. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

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