Summary
The Supreme Court of Ohio permanently disbarred Jeffrey Lee Terbeek for misappropriating $15,000 held in escrow, using the funds for personal purposes, and concealing the misappropriation. The court also considered his failure to cooperate in disciplinary proceedings, failure to make restitution, and late attempt to resign from the practice of law.
Topics
Practice areas
Questions Presented
- Whether Terbeek committed the charged violations of the former Ohio Code of Professional Responsibility and the Ohio Rules of Professional Conduct by misappropriating escrow funds, making a misrepresentation, failing to cooperate with litigation and disciplinary proceedings, and engaging in conduct prejudicial to the administration of justice.
- Whether permanent disbarment was the appropriate sanction for the misconduct in light of the presumptive sanction, comparable cases, and aggravating and mitigating factors.
- Whether Terbeek could avoid the recommended discipline by tendering a resignation from the practice of law near the end of the disciplinary proceeding.
Holdings
- Terbeek violated the applicable disciplinary rules by misappropriating funds held in escrow for a third party, engaging in dishonesty and misrepresentation, failing to maintain required trust-account funds, engaging in conduct prejudicial to the administration of justice, and adversely reflecting on his fitness to practice law.
- Permanent disbarment was the appropriate sanction for Terbeek's misappropriation of escrow funds, dishonesty, lack of cooperation, and failure to make restitution.
- Terbeek forfeited the opportunity to resign with disciplinary action pending because he tendered his resignation only after the disciplinary proceedings were nearly complete.
Key quotations
“misappropriation of client funds carries a “presumptive sanction of disbarment”” (¶ 16)
“This rule does not exist to allow lawyers to exhaust the participants and procedures of the disciplinary system in hope of ultimately evading the recommended sanction.” (¶ 17)
“Accordingly, Jeffrey Lee Terbeek is permanently disbarred from the practice of law in Ohio.” (¶ 19)
Factual background
Terbeek represented Diep Nguyen Vo in the 1994 purchase of a tailoring business and was required to hold the $15,000 purchase price in escrow until existing liens were satisfied. Beginning in 2001, he withdrew the funds for personal use, including $14,500 by two checks payable to himself and the remaining $500 by another withdrawal. When the seller later sought payment, Terbeek represented that the funds remained in escrow pending satisfaction of the liens, although he had already misappropriated them; he also failed to respond to discovery, attend hearings, or pay the resulting judgment.
Procedural history
A probable-cause panel certified a disciplinary complaint alleging misappropriation of escrow funds, dishonesty, and related misconduct. A master commissioner found the violations by clear and convincing evidence and recommended permanent disbarment; the board adopted that recommendation. The Supreme Court of Ohio issued an order to show cause, received no objections, adopted the findings and sanction recommendation, and permanently disbarred Terbeek.