Disciplinary Counsel v. Jacobs

140 Ohio St. 3d 2 (2014) · Supreme Court of Ohio · May 27, 2014 · No. 2013-1230

Summary

The Supreme Court of Ohio imposed a two-year suspension on attorney Leslie William Jacobs after his felony conviction for filing false federal income tax returns. The court granted credit for time served under his interim felony suspension, noting his payment of delinquent taxes, cooperation, lack of prior discipline, and other mitigating factors.

Court
Supreme Court of Ohio
Writing for the Court
Per Curiam; Maureen O'Connor, Chief Justice; Paul E. Pfeifer, Justice; Terrence O'Donnell, Justice; Lanzinger, Justice; Judith L. French, Justice; William M. O'Neill, Justice
Jurisdiction
Ohio
Decision date
May 27, 2014
Docket number
2013-1230
Procedural posture
On a certified report from the Board of Commissioners on Grievances and Discipline concerning stipulated attorney misconduct and a jointly recommended sanction.
Standard of review
The Supreme Court independently determines the appropriate sanction for attorney misconduct after considering the ethical duties violated, sanctions imposed in comparable cases, and aggravating and mitigating factors.
Precedential value
published precedential opinion
Parties
Disciplinary Counsel v. Leslie William Jacobs
Disposition
other

Topics

tax fraudtax penaltiestax

Practice areas

legal ethics and professional responsibilityattorney disciplinetax crimes

Questions Presented

  1. Whether Jacobs's conduct violated the applicable Disciplinary Rules and Rules of Professional Conduct.
  2. What sanction was appropriate for Jacobs's felony conviction and related dishonest tax conduct.
  3. Whether Jacobs should receive credit for the time served under his interim felony suspension.

Holdings

  1. Jacobs violated DR 1-102(A)(3), DR 1-102(A)(4), DR 1-102(A)(6), Prof.Cond.R. 8.4(b), Prof.Cond.R. 8.4(c), and Prof.Cond.R. 8.4(h) by knowingly filing false tax returns and making related false statements.
  2. A two-year suspension from the practice of law was appropriate, based on the nature of Jacobs's dishonest tax conduct, the aggravating and mitigating factors, and comparable disciplinary cases.
  3. Jacobs was entitled to credit for the time served under his interim felony suspension beginning April 3, 2012.

Key quotations

overwhelming evidence of mitigation that respondent has presented here. (¶ 21)

Factual background

For tax years 2004 through 2007, Jacobs prepared federal income tax returns for himself and his wife and knowingly overstated business-expense deductions, including reimbursed expenses, personal club expenses, improperly deducted meals and entertainment, and vehicle expenses. He made false statements during IRS audits and a criminal investigation, then pleaded guilty to making and subscribing false tax returns under 26 U.S.C. 7206(1). The false returns understated taxable income by $256,380, produced unpaid taxes of $75,385, and Jacobs paid the tax shortfall, fines, and assessments.

Procedural history

Jacobs's license was suspended on an interim basis after his felony conviction for filing false federal income tax returns. Disciplinary Counsel then filed a complaint alleging violations of the applicable Disciplinary Rules and Rules of Professional Conduct. A panel adopted the parties' stipulations and recommended a two-year suspension with credit for time served, the Board adopted the panel's report, and the Supreme Court of Ohio accepted the findings and recommendation.

Court Document

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