 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
In re Brown12/18/1995
THE COURT:
On our own motion, we review an order of the State Bar Court publicly reproving John Michael Brown, an attorney admitted to practice in this state. The public reproval is based on Brown's conviction of three misdemeanor counts of failure to remit to the state certain funds withheld from the wages of his law corporation's employees (Unemp. Ins. Code, ยง 2118). The conduct underlying the convictions spanned more than two years and by the end of that period Brown had misappropriated approximately $36,000 in withheld wages that should have been paid to the state. In our order granting review, we directed that in their briefs the parties address "the adequacy of public reproval as discipline for the crimes of which John Michael Brown was convicted."
In this court, the State Bar's Office of Trial Counsel has argued that appropriate discipline in this case would include one year of actual suspension from the practice of law. For the reasons set forth below, we conclude that while public reproval is not adequate discipline, one year of actual suspension would be excessive, particularly in light of the demonstrated mitigating circumstances, including over twenty years of law practice without prior discipline. Accordingly, we shall order Brown suspended from the practice of law for two years and stay the suspension on conditions that include sixty days actual suspension.
I
A. Background
Brown has no prior record of discipline. He was admitted to the practice of law in California on December 23, 1966. After admission, he was employed for one year as a superior court research attorney and for another year as a deputy district attorney. Brown then joined a law firm specializing in plaintiffs' personal injury litigation, eventually becoming a partner. Upon the firm's dissolution in 1978, Brown established a sole practice. In 1985, Brown incorporated his law practice as J. Michael Brown Professional Corporation.
B. Facts Underlying the Convictions
As an employer that paid wages to employees (including Brown himself), Brown's law corporation was subject to this state's employment tax laws and registered as an employer with the Employment Development Department (EDD). Brown understood that his law corporation was legally obligated to withhold from the wages of its employees state income tax, employment training tax, disability tax, and unemployment insurance contributions, and to remit these withheld wages to the state on a quarterly basis, together with quarterly tax returns. From the beginning of his sole practice in 1978 through the first quarter of 1988, Brown withheld and timely paid all state taxes and submitted the required quarterly returns.
From April 1, 1988, through September 30, 1990, Brown withheld from the wages of his law corporation's employees the amounts required to satisfy state tax obligations, but he did not remit these funds to the state, nor did he submit any of the required quarterly returns. Instead of remitting the withheld wages to the state, Brown used this money to satisfy his personal debts. In all, Brown failed to remit $34,253.53 in state income and disability tax withholdings and $1,769.11 in unemployment insurance contributions and employment training taxes. During this period, the employees of Brown's law corporation included himself, a secretary, and a paralegal. Most of the unremitted funds had been withheld from Brown's own salary, but the record does not disclose the exact allocation as between Brown's salary and those of the other employees.
On March 1, 1990, the EDD contacted Brown about the overdue quarterly returns for the second quarter
Page 1 2 3 4 5 6 7 8 9 10 11 12 California Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|