| Description: |
Thomas P. Sughrua (WSBA No. 14117, admitted 1984), of Seattle, was disbarred, effective February 20, 2008, by order of the Washington State Supreme Court following approval of a stipulation. Mr. Sughrua agreed that if the matter were to proceed to a public hearing, there was a substantial likelihood that the Bar Association would be able to prove, by a clear preponderance of the evidence, the facts and misconduct described herein. This discipline is based on conduct in four matters involving failure to maintain complete records of all clients’ funds coming into his possession and intentional misappropriation of client’s funds.
Matter #1: Beginning in 2002, Mr. Sughrua represented a client in a dispute with a mortgage lender. The client gave Mr. Sughrua $10,000 in 2003 to be deposited in a court registry and then paid in whole or in part to the mortgage lender when the dispute was settled. Mr. Sughrua failed to maintain any records of the funds and intentionally misappropriated some or all of the funds for his own use.
Beginning in 2004, Mr. Sughrua represented the same client in two separate personal-injury claims. Mr. Sughrua settled both of the client’s claims, one without her knowledge. In July 2005, Mr. Sughrua received settlement checks of $5,000 for the first claim and $8,750 for the second claim. Mr. Sughrua failed to notify the client of receipt of these funds and, without the client’s knowledge, endorsed the checks in the client’s name and deposited them into his lawyer trust account. Mr. Sughrua failed to maintain any record of these funds and intentionally misappropriated some or all of the funds for his own use.
In January 2007, the client terminated the representation and the client’s new lawyer demanded that Mr. Sughrua return all of the client’s files and provide a written accounting of all the funds Mr. Sughrua had handled on the client’s behalf. In February 2007, Mr. Sughrua sent to the client’s new lawyer a check for $10,000 for the funds the client had given Mr. Sughrua in connection with the dispute with her mortgage lender. He also sent an accounting of the funds he had received in connection with the two personal-injury claims. In that letter, Mr. Sughrua stated that he was holding $7,995.36 in his trust account on the client’s behalf, and that he would continue working “at no extra charge” to compromise certain liens against the settlement funds. Mr. Sughrua has not disbursed any of the settlement funds to the client and, by March 2007, he had only $24.91 in his trust account.
Matter #2: Mr. Sughrua represented a client in an appeal before the Board of Industrial Insurance Appeals from a decision by the Department of Labor and Industries. Mr. Sughrua settled the client’s claim and received a settlement check for the amount of $2,138.40 in June 2006, which he deposited into his lawyer trust account. Mr. Sughrua failed to maintain any records of these funds and intentionally misappropriated some or all of the funds for his own use. Between June and December 2006, the client made numerous attempts to contact Mr. Sughrua to inquire about the settlement funds. Mr. Sughrua did not respond to the client’s inquiries. By December 8, 2006, Mr. Sughrua had only $22.23 in his trust account. On December 21, 2006, Mr. Sughrua sent to the client a check for $1,025.67 representing the client’s share of the settlement funds.
Matter #3: In April 2005, Mr. Sughrua acted as the escrow closing agent with respect to the sale of commercial property by a corporation (seller) to a limited liability company (purchaser). In order to effect the transaction, the purchaser deposited $25,000 as earnest money with a realty company. The realty company transferred the earnest money to Mr. Sughrua, who deposited the funds into his lawyer trust account. Mr. Sughrua failed to maintain any records of the funds and intentionally misappropriated some or all of the funds for his own use. By July 2005, Mr. Sughrua only had $634.12 in his trust account. Between December 2006 and January 2007, lawyers for both parties sent at least five letters to Mr. Sughrua informing him that the parties had reached a settlement concerning the distribution of the earnest money and requesting that Mr. Sughrua distribute the earnest money in accordance with the settlement. Mr. Sughrua did not respond to these requests and did not distribute the money to either party. By January 16, 2007, Mr. Sughrua only had $20.94 in his trust account.
Matter #4: In January 2003, Mr. Sughrua filed a wrongful death action on behalf of the estate of a decedent and the decedent’s family. Mr. Sughrua reached a settlement with one of the defendants in November 2006. The defendant’s insurer sent Mr. Sughrua two checks, each for $10,000 and each payable to one of the members of the decedent’s family and to Mr. Sughrua as his or her attorney. Mr. Sughrua endorsed both checks, each in the name of the family member to whom the check was written, and deposited the checks into his lawyer trust account. Mr. Sughrua failed to maintain any records of these funds and intentionally misappropriated some or all of the funds for his own use. He did not disburse any of the settlement funds to the two family members to whom the checks were written. By March 2007, Mr. Sughrua only had $24.91 in his trust account.
In June 2007, Mr. Sughrua reached a settlement with one of the remaining defendants, whose insurer sent Mr. Sughrua a check for $50,000 payable to Mr. Sughrua as attorney for the estate of the decedent. These funds were to be held in trust for the decedent’s minor son. Mr. Sughrua deposited the funds into his lawyer trust account. He failed to maintain any records of the funds and intentionally misappropriated some or all of the funds for his own use. Mr. Sughrua has not disbursed any of the funds to either the decedent’s minor son or to the decedent’s estate. By August 2007, Mr. Sughrua had only $19,071.09 in his trust account.
Mr. Sughrua’s conduct violated RPC 8.4(b), prohibiting a lawyer from committing a criminal act (here, theft) that reflects adversely on the lawyer’s honesty, trustworthiness, or fitness as a lawyer in other respects; RPC 8.4(c), prohibiting a lawyer from engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation; and former RPC 1.14(b)(3) and current 1.15B(a), requiring a lawyer to maintain complete records of all funds, securities, and other properties of a client coming into the possession of the lawyer and render appropriate accounts to his or her client regarding them.
Scott G. Busby represented the Bar Association. Lowell H. Ashbach Jr. represented Mr. Sughrua. |