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Richard S. Twiss (WSBA No. 3020, admitted 1970), of Seattle, was disbarred effective June 8, 2001, by order of the Supreme Court, following a stipulation. The discipline is based upon misrepresentations he made in 1991 and 1992 in a business deal.
Mr. Twiss and Mr. Wheeler were business partners in two boxing-promotion businesses named Wheeler and Associates, Inc. (W&A) and Wheeler China, Inc. In February 1991, a Chinese company (CX) contacted Mr. Wheeler to arrange a boxing competition in China. CX and W&A signed an agreement to put on a boxing competition in China. Mr. Wheeler conducted most of the business with CX. Mr. Twiss obtained most of his information from Mr. Wheeler. Mr. Wheeler read portions of the correspondence to Mr. Twiss. Over a three-month period, CX paid W&A $3.1 million, which Mr. Wheeler deposited into his personal checking account. On December 31, 1991, $700,000 of this money was wired to boxer George Foreman, but he did not sign to participate in the event.
In March 1992, Mr. Wheeler and Mr. Twiss traveled to China to meet with CX. W&A signed a new agreement with CX during this trip. Mr. Wheeler excluded Mr. Twiss from many of the meetings. During this time, Mr. Twiss was suffering from alcoholism and depression. Because Mr. Twiss did not have much to do, he was drinking more than usual. In March 1992, while still in China, Mr. Twiss, at Mr. Wheeler’s direction, signed the names of two boxing managers to boxing service agreements. Mr. Twiss testified that, based on information he obtained from Mr. Wheeler, he believed that the life of Mr. G (the CX representative) would be in danger if Mr. Twiss did not sign the boxing managers’ names to the contracts.
Also in 1992, Mr. Wheeler wrote a letter to CX stating that W&A had advanced $1.8 million to the two boxers involved in the above agreements. Mr. Twiss repeated this statement to representatives of the China Agricultural Bank, which was lending money to CX for the boxing event. In fact, there were no valid agreements and W&A had not paid any advances. In May 1992, Mr. Wheeler stated falsely that the two boxing services contracts were canceled and that the $2.4 million advanced to the fighters was forfeited, because W&A and CX had not rescheduled the boxing match. Mr. G testified that Mr. Twiss repeated these statements. Mr. Twiss testified that he believed that the misrepresentations were made to allow Mr. G to get money out of China, because his life was in danger.
In April and May 1992, CX wired W&A $3.1 million. On June 13, 1992, Mr. Wheeler transferred $98,000 to Mr. Twiss’s personal bank account. In August 1992, Mr. Twiss drafted a letter of credit on Seafirst Bank Private Banking stationery using the fictitious name Martin A. Oakley in the signature block. Mr. Wheeler signed this letter and presented it to CX, indicating it was a sample.
On August 24, 1992, Mr. Wheeler and Mr. Twiss split the remaining funds received from CX. Mr. Wheeler arranged for a boxing promotion firm to handle the logistics of the October 17, 1992 fight. One of the boxers reported an injury several weeks before the fight, and the fight did not take place.
The boxing event never occurred, and W&A did not return any of the funds advanced by CX. CX filed a lawsuit against W&A, Mr. Twiss and Mr. Wheeler individually for return of the funds advanced. Following a jury verdict, the Honorable Thomas S. Zilly awarded CX $2,519,803 jointly and severally against Mr. Wheeler and Mr. Twiss.
In October 1997, Mr. Twiss began receiving treatment for his alcoholism and depression. Mr. Twiss has complied with all treatment recommendations since that time. During the hearing, Mr. Twiss’s treatment provider testified that his alcoholism significantly contibuted to his error in judgment.
Mr. Twiss’s conduct violated RPC 8.4(c), prohibiting conduct involving dishonesty, fraud, deceit or misrepresentation; and 8.4(a), prohibiting knowingly assisting another person in violating the RPCs.
Linda Eide represented the Bar Association. Louis D. Peterson and Michael S. Wampold represented Mr. Twiss.
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