ILNews

Lawyer suspended for conversion, lying

Jennifer Nelson
January 1, 2008
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The Indiana Supreme Court suspended a Vanderburgh County attorney today for at least three years for committing what the court describes as the most serious of ethical breaches.

The court came to its decision In the matter of: Douglas W. Patterson, No. 82S00-0402-DI-90, as a result of Douglas Patterson's conversion of client funds, deceit in concealing his misconduct, and dishonesty with the Indiana Supreme Court Disciplinary Commission.

Patterson was an associate at a law firm which maintained a trust account. In 1999, Patterson and attorney Maurice Doll left the firm and started a new one. The new law firm continued to use the old firm's trust account until they established their own in May 2000.

Patterson continued to use the old trust account once the new one had been established. In August 2000, the new firm's bookkeeper discovered Patterson had written five checks to himself or on his behalf from that account in July 2000.

Patterson denied knowledge of the checks and didn't admit to writing the checks until Doll suggested they contact the police. Patterson claimed he only wrote checks out of that account in July 2000, but an audit later revealed he wrote checks to himself in April and May 2000.

Also, in January 2000, Patterson deposited his own funds into the trust account and then immediately wrote a check for the same amount to a church daycare center in order to reimburse the church for a tax debt it owed as a result of a mistake he made in handling its payroll.

Patterson eventually repaid the money he converted, most of which belonged to a single client.

When he appeared before the Disciplinary Commission, Patterson said he only wrote checks to himself in July 2000 and didn't know the funds belonged to clients, but he did admit he mixed client and personal funds in the daycare transaction. He argued the Disciplinary Commission failed to meet its burden of proof with respect to all other charges and asked for a consideration of mitigating factors.

The Supreme Court found overwhelming evidence of Patterson's conversion of funds in the trust account, that he lied when he said he didn't know the money in the account was client funds, and evidence supports the hearing officer's rejection of his credibility regarding this issue.

The high court concluded Patterson violated Professional Rules of Conduct 1.15(b), 8.4(b) and 8.4(c). Because the misconduct of converting client funds, deceit in concealing misconduct, and dishonesty with the Disciplinary Commission are among the most serious of ethical breaches, the court decided he should be suspended from the practice of law for at least three years beginning July 31.

After that time, he may be reinstated only if he pays the costs of this proceeding, fulfills his duties as a suspended attorney, and satisfies the requirements of Admission and Discipline Rule 23(4), including demonstrating genuine remorse.
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  1. File under the Sociology of Hoosier Discipline ... “We will be answering the complaint in due course and defending against the commission’s allegations,” said Indianapolis attorney Don Lundberg, who’s representing Hudson in her disciplinary case. FOR THOSE WHO DO NOT KNOW ... Lundberg ran the statist attorney disciplinary machinery in Indy for decades, and is now the "go to guy" for those who can afford him .... the ultimate insider for the well-to-do and/or connected who find themselves in the crosshairs. It would appear that this former prosecutor knows how the game is played in Circle City ... and is sacrificing accordingly. See more on that here ... http://www.theindianalawyer.com/supreme-court-reprimands-attorney-for-falsifying-hours-worked/PARAMS/article/43757 Legal sociologists could have a field day here ... I wonder why such things are never studied? Is a sacrifice to the well connected former regulators a de facto bribe? Such questions, if probed, could bring about a more just world, a more equal playing field, less Stalinist governance. All of the things that our preambles tell us to value could be advanced if only sunshine reached into such dark worlds. As a great jurist once wrote: "Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman." Other People's Money—and How Bankers Use It (1914). Ah, but I am certifiable, according to the Indiana authorities, according to the ISC it can be read, for believing such trite things and for advancing such unwanted thoughts. As a great albeit fictional and broken resistance leaders once wrote: "I am the dead." Winston Smith Let us all be dead to the idea of maintaining a patently unjust legal order.

  2. The Department of Education still has over $100 million of ITT Education Services money in the form of $100+ million Letters of Credit. That money was supposed to be used by The DOE to help students. The DOE did nothing to help students. The DOE essentially stole the money from ITT Tech and still has the money. The trustee should be going after the DOE to get the money back for people who are owed that money, including shareholders.

  3. Do you know who the sponsor of the last-minute amendment was?

  4. Law firms of over 50 don't deliver good value, thats what this survey really tells you. Anybody that has seen what they bill for compared to what they deliver knows that already, however.

  5. As one of the many consumers affected by this breach, I found my bank data had been lifted and used to buy over $200 of various merchandise in New York. I did a pretty good job of tracing the purchases to stores around a college campus just from the info on my bank statement. Hm. Mr. Hill, I would like my $200 back! It doesn't belong to the state, in my opinion. Give it back to the consumers affected. I had to freeze my credit and take out data protection, order a new debit card and wait until it arrived. I deserve something for my trouble!

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