Oh it’s that time of year! B.R.E.A.M. here at the ATL. While your fingers bleed hitting “refresh” to get the first whiff of bonus news, some of you probably clicked here thinking Cravath had pulled the trigger on the always exciting cavalcade of discretionary bonuses that firms expect associates to swallow in lieu of an actual raise they can count on. Alas, no such luck here — this article is dedicated to all the lawyers out there slaving away at their own misconduct for our amusement.
Meet David J. Steele of Indiana (importantly NOT the Los Angeles Trademark attorney who unfortunately has the same name as this yo-yo). Here’s the offending Steele’s Avvo profile:
If you’re wondering how a guy gets flagged with “extreme caution” and a 1.0 rating while boasting 4.5 stars from client reviews, let’s point out that paying clients to write favorable reviews and intimidating those who wrote negative reviews — up to and including releasing embarrassing confidential information if they did not comply — is probably the least of this guy’s admitted transgressions.
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In a Per Curiam Attorney Discipline Action handed down yesterday, the Indiana Supreme Court recounted the material facts that Steele admitted to in an affidavit of consent to discipline, and it was a doozy:
Respondent misappropriated approximately $150,000 of client funds from his attorney trust account. Respondent redirected most of these unearned fees into his personal or operating account, although he sometimes “peel[ed] off a few hundred dollars” to give to his employees as a “spot bonus.” Respondent communicated extensively with his office manager (“JD”) regarding these thefts and the Disciplinary Commission inquiries prompted by these thefts.
First of all, you can’t do that. Second of all, you shouldn’t leave a trail of communications about doing that thing you can’t do. Like, say, this one:
I simply cannot tell you how tired [I] am of these people. How tired [I] am of hearing about the stupid f***ing transcripts she ordered on her own and [] expects me to split with her…. You added a line to her January bill right? A line that said, ‘emails and phone calls to and from client, prepare for hearing,’ right? How much time did we put down for that? I think [I] only told you like 4.5 hours right? Well f*** that. If she wants me to split the cost of those f***ing transcripts [I] told her not to get, add another 1.5 hours to that line ok?
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Dubious billing. Check. Ponzi Scheme? Oh, check check!
Respondent stalled or avoided responding to clients requesting refunds and instructed his staff to inflate bills in an attempt to deplete the retainers advanced by clients. When these measures failed, Respondent occasionally issued refunds to former clients using retainers paid by new clients.
Alas, loyal accomplices are hard to come by these days, and after unceremoniously ditching “JD” the office manager after a couple months of employment, JD decided the disciplinary authorities might be interested how trust accounting works over at the House of Steele. Steele did not take kindly to this betrayal:
Upon learning this, Respondent sent JD numerous text messages and emails threatening and intimidating JD and attempting to dissuade JD from cooperating with the Commission. In one such message, Respondent told JD, “No one will ever hire you if [I] get disbarred for something you told them. You think lawyers want someone in their office who tried to get their last boss disbarred?” In another message, Respondent disparaged JD for his sexual orientation, writing “So is this the part where [I] say I’ll meet you on the playground and we can settle it like men? Or like men who [] are so the opposite of men that they even take their husband’s last name?”
Well this is escalating quickly…
Respondent made false statements to the Commission during its investigation that, by Respondent’s own description, were “virtually pathological in frequency and scope.” Respondent habitually lied in his responses to the Commission’s inquiries regarding his trust account, billing and refund practices, and numerous highly derogatory statements Respondent had made about clients and various opposing counsel. Respondent also lied regarding the circumstances of JD’s termination of employment, falsely telling the Commission that JD had been caught having sex with a male client in Respondent’s office and that JD had gained access to the firm’s website to post disparaging comments against the gay community.
Yikes.
Additionally, Respondent brandished a handgun when he terminated JD’s employment…
HOLD THE F**KING PHONE!!!! This detail seems like it deserves more than 10 words nestled at the bottom of page 3, doesn’t it?
As the opinion sums it up:
These considerations point in a single direction here. The seriousness, scope, and sheer brazenness of Respondent’s misconduct is outrageous. He stole approximately $150,000 from his clients, threatened and intimidated his staff, disparaged and mocked virtually everyone around him, lied to all comers, and obstructed the Commission’s investigation. Perhaps most disturbingly, Respondent repeatedly and fundamentally breached the duty of confidentiality that lies at the heart of the attorney-client relationship. Respondent recorded privileged communications and shared those recordings with others for his own amusement, he solicited his office staff to do the same, and he posted client confidences and falsehoods on a legal marketing website in order to “punish” certain clients and inflate Respondent’s own website ranking.
There you have it. Now let’s take a second and send our hearty congratulations to the Indiana Supreme Court for acing this Professional Responsibility issue-spotter. It wasn’t easy, but you crazy kids pulled it off!
(While you wait for your bonus, check out the next page for the full opinion…)