Summary
The Supreme Court of Ohio held that attorney David Allen Streeter violated Prof.Cond.R. 8.4(c) and 8.4(h) by misappropriating more than $230,000 from real estate-closing escrow funds and using the money for personal and business expenses. The court imposed a two-year suspension from the practice of law, staying the final 18 months subject to treatment, OLAP, and no-further-misconduct conditions.
Topics
Practice areas
Questions Presented
- What sanction is appropriate for an attorney who misappropriated more than $230,000 in real-estate-closing escrow funds, used later misappropriations to conceal earlier thefts, and violated Prof.Cond.R. 8.4(c) and 8.4(h)?
- Whether the mitigating circumstances justified imposing a fully stayed suspension under Disciplinary Counsel v. Edwards or instead required an actual suspension.
Holdings
- Streeter's misappropriation of escrow funds, use of those funds for personal and business expenses, and concealment of the misappropriations constituted conduct involving dishonesty, fraud, deceit, or misrepresentation and conduct adversely reflecting on his fitness to practice law, violating Prof.Cond.R. 8.4(c) and 8.4(h).
- Although misappropriation ordinarily carries a presumptive sanction of disbarment and dishonesty ordinarily warrants an actual suspension, presumptive sanctions may be overcome by sufficient mitigating evidence; however, Streeter's mitigating evidence did not justify a fully stayed suspension.
- Streeter is suspended from the practice of law in Ohio for two years, with the final 18 months stayed on conditions requiring continuation of his OLAP contract if recommended, compliance with treatment recommendations, and no further misconduct.
Key quotations
“disbarment is the presumptive sanction for the misappropriation of client funds” (¶ 21)
“an abundance of mitigating evidence” (¶ 22)
“may be tempered with sufficient evidence of mitigating or extenuating circumstances.” (¶ 23)
“Accordingly, David Allen Streeter Jr. is suspended from the practice of law in Ohio for two years, with the final 18 months of that suspension stayed on the conditions that he will extend the term of his OLAP contract if OLAP so recommends, comply with all of the treatment recommendations made by OLAP and his treating professionals, and commit no further misconduct.” (¶ 33)
Factual background
From February 2010 through May 2011, Streeter conducted Ohio real-estate closings and received funds that he was required to hold in escrow and disburse according to the closing instructions. On six occasions, he deposited escrow funds totaling more than $230,000 into his operating account and used them for personal and business expenses, using later misappropriated funds to repay earlier thefts and conceal the scheme. After Chicago Title discovered the irregularities, Streeter repaid the remaining $74,992.75 with personal and borrowed funds. The court also considered his lack of prior discipline, restitution, cooperation, extensive character evidence, and treated mental-health conditions.
Procedural history
Disciplinary counsel filed an August 2012 complaint alleging that Streeter misappropriated more than $230,000 from real-estate-closing escrow funds. The parties submitted stipulations of fact and misconduct, but a hearing panel rejected their consent-to-discipline agreement, adopted the stipulations, and recommended a two-year suspension stayed in full. The board adopted the panel's findings and recommendation. The Supreme Court sustained relator's objection to the sanction and imposed a two-year suspension with the final 18 months stayed on conditions.