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Lawyer who wrote on ethics issues is suspended after he is accused of helping client hide assets

Lawyer who wrote on ethics issues is suspended after he is accused of helping client hide assets

News Admin by News Admin
March 29, 2024
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Lawyer who wrote on ethics points is suspended after he’s accused of serving to shopper cover belongings

By Debra Cassens Weiss

March 7, 2024, 12:49 pm CST

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An Iowa lawyer has obtained a two-year suspension for serving to a shopper cover cash from collectors and for “furtively” inserting a provision right into a custody settlement. (Picture from Shutterstock)

An Iowa lawyer has obtained a two-year suspension for serving to a shopper cover cash from collectors and for “furtively” inserting a provision right into a custody settlement.

The Iowa Supreme Courtroom suspended 68-year-old lawyer David L. Leitner of Iowa in a Dec. 8 opinion, in response to a March 4 story by the Iowa Capital Dispatch.

Leitner had argued that his ethics articles had contributed to the career and ought to be taken under consideration by ethics regulators. The Iowa Supreme Courtroom’s Lawyer Disciplinary Board had responded that the assertion is “significantly eyebrow-raising when his misconduct includes monetary fraud,” in response to the Iowa Capital Dispatch.

The disciplinary board allegations towards Leitner have been deemed to be admitted as a result of he didn’t reply to the preliminary grievance.

The hidden cash case concerned Leitner’s illustration of an Iowa seed seller who was convicted of chapter fraud in 2007 for hiding belongings. Leitner allegedly created an organization for the seed seller in 2013. Leitner made himself the managing member of the corporate, permitting the seed seller to ship a part of his earnings to the corporate whereas hiding it from the federal government, which was owed about $71,000.

Though Leitner made himself the contact for the seed seller’s company, neither he nor his shopper transformed funds from anybody, the state supreme courtroom acknowledged.

“Furthermore, the report doesn’t present that the federal authorities or another creditor was truly attempting to gather [the seed dealer’s] receivables,” the state supreme courtroom stated. “And so the report doesn’t present that the federal authorities or another creditor was truly deceived or in any other case hampered in its efforts to gather. At most, the report reveals that [the client] and Leitner hoped to deceive any collectors who may
attempt to gather.”

Leitner was additionally accused in a second disciplinary rely of “furtively” including a stipulation to a custody settlement. An opposing lawyer had crafted a PDF of the settlement primarily based on phrases adopted in a mediation and had despatched it to Leitner. Unbeknownst to the opposing lawyer, Leitner added a provision giving his shopper a “first proper of refusal” to look after his minor little one at any time when his ex-wife couldn’t accomplish that, in response to the allegations.

Leitner’s shopper signed the modified settlement, and it was returned to the opposing counsel. The modified settlement was then filed with the district courtroom.

Different counts within the disciplinary grievance alleged that Leitner violated guidelines relating to conflicts of curiosity, contact with represented events and shopper belief accounts.

The Iowa Supreme Courtroom cited two aggravating elements. Though Leitner acknowledged belief account points, he had not taken duty “for his worst conduct,” the state supreme courtroom stated. He had additionally made deceptive statements about reaching an settlement on a suspension.

In mitigation, Leitner had no disciplinary historical past. Leitner had additionally supplied professional bono and reduced-fee illustration and had accepted appointments for indigent prison defendants.

A lawyer for Leitner, David L. Brown, didn’t instantly reply to an ABA Journal e mail requesting remark. The cellphone quantity for Leitner’s legislation workplace was not taking messages.





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