In re Sanclemente
| Decision Date | 14 February 2014 |
| Docket Number | Board Case No. 2011-0234-B,No. 23, 2014,23, 2014 |
| Parties | In the Matter of a Member of the Bar of the Supreme Court of the State of Delaware: R. KEITH SANCLEMENTE, Petitioner. |
| Court | Supreme Court of Delaware |
Before HOLLAND, JACOBS and RIDGELY, Justices.
This 14th day of February, 2014, it appears to the Court that the Board on Professional Responsibility has filed a Report on this matter pursuant to Rule 9(d) of the Delaware Lawyers' Rules of Disciplinary Procedure. Neither the Office of Disciplinary Counsel ("ODC") nor the Respondent have filed objections to the Board's Report. The Court has reviewed the matter pursuant to the Delaware Lawyers' Rules of Disciplinary Procedure and approves the Board's Report.
NOW, THEREFORE, IT IS ORDERED that the Report filed by the Board on Professional Responsibility on January 15, 2014 (copy attached) is hereby APPROVED and ADOPTED. The Respondent is hereby disbarred effective immediately.
Henry duPont Ridgely
Justice
In the Matter of a Member of the Bar of The Supreme Court of Delaware
R. KEITH SANCLEMENTE, Respondent.
This is the report of the Board on Professional Responsibility of the Supreme Court of the State of Delaware (the "Board") setting forth its findings and recommendations in the above captioned matter.
The members of panel of the Board (the "Panel") are Wayne J. Carey, Esquire, Yvonne Anders Gordon, Ed.D. and Lisa A. Schmidt, Esquire (the "Chairperson"). The Office of Disciplinary Counsel (the "ODC") was represented by Patricia Bartley Schwartz, Esquire. The Respondent R. Keith Sanclemente (the "Respondent") was represented by Charles Slanina, Esquire.
The ODC filed an Amended Petition for Discipline on March 1, 2013 (the "Petition"). Respondent answered the Amended Petition on March 11, 2013 (the "Answer").
A telephonic pre-hearing conference was held on March 7, 2013. The Panel conducted a hearing on liability on March 14, 2013 (the "March 14 Hearing). 1 The parties provided thePanel with a Stipulation of Admitted Facts ("Admitted Facts"). At the March 14 Hearing, the Panel heard testimony from 6 witnesses: Ed Tarlov, Sheila Pacheco, Jamaar Manlove, Roseanne Goldberg,2 Respondent and John Sullivan. In addition, Joint Exhibits 1 through 27 ("Exhibits") were admitted into evidence. (Tr. 3) At the conclusion of the March 14 Hearing, the parties submitted written post-hearing closing arguments.
On August 7, 2013 the Panel notified counsel that it planned to recommend to the Delaware Supreme Court that the Respondent violated Delaware Rules of Professional Conduct 4.1(a), 4.1(b), 5.1(c), 5.3, 84(b), 8.4(c), 8.4(d) and 1.15(a), as alleged in the Petition. On September 19, 2013 the Board reconvened to hear testimony and argument relating to sanctions (the "September 19 Hearing"). At the September 19 Hearing, the Panel heard testimony from: Nancy Carden, Kenya Smith, Gloria Henry, Montgomery Boyer, William Cheesman, Christopher McBride, John Spall, Vincent Turner, Larry Knopf and Respondent, followed by closing arguments. ODC Exhibit 28 was admitted into evidence. (S. Tr. 194).3
The Petition alleges that Respondent violated Delaware Lawyers' Rules of Professional Conduct ("Rules") 4.1(a), 4.1(b), 5.1(c), 5.3, 8.4(b), 8.4(c), 8.4(d) and 1.15(a) in connection with residential real estate closings Respondent and his employee conducted between 2006 and 2008. Respondent is alleged to have certified that the representations contained in Department ofHousing and Urban Development Settlement Statements ("HUD-1 Statement") were a true and accurate account of the transaction when in fact they were not. Specifically, the Petition charges that either the buyers did not bring to the closings the financial contributions set forth on the HUD-1 Statements and/or the proceeds from the transactions were disbursed in amounts that differed from those set forth on the HUD-1 Statements. The Petition alleges that the false certifications constitute violations of Rules 4.1(a), 4.1(b), 8.4(b), 8.4(c) and 8.4(d). The Petition further alleges that Respondent failed to supervise the conduct of another attorney and paralegals employed by Respondent who also participated in real estate transactions where HUD-1 Statements were falsely certified, in violation of Rules 5.1(c) and 5.3. Finally, the Petition charges Respondent with violating Rule 1.15(a) for using his firm's client trust account to fund all or part of the buyer's contribution reflected on certain HUD-1 Statements.
Respondent is a member of the Bar of the Supreme Court of Delaware, He was admitted to the Bar in 1996. At all times relevant to this matter, Respondent was the sole owner and managing partner of Sanclemente & Associates, LLC (the "Sanclemente Firm"). Respondent is presently engaged in the private practice of law in Delaware. (Petition and Answer ¶¶ 1 and 2, Admitted Facts ¶ 1). From 2006 through 2008, Respondent, as the closing attorney for the following real estate closings, represented the borrower and acted as agent for the lender:
Virginia & Joseph Reed
13 Hickman Road
Claymont, Delaware
("Reed Closing")
10/19/07
Tony Coleman
210 E. 14th Street
Wilmington, Delaware
("Coleman Closing")
6/25/08
Theodore Jones
215 Keiser Place
New Castle, Delaware
("Jones Closmg")
3/21/08
Rhonda P. Johnson
417 Baldwin Drive
Smyrna, Delaware
("Johnson Closing")
1/16/07
Robert S. & Robin M. Baldwm
403 Bethune Drive
Wilmington, Delaware
("Baldwin Closing")
Collectively these real estate closings are referred to as the "Sanclemente Closings." (Admitted Facts ¶ 2, Exs. 1-5).
Non-lawyer assistants would prepare the HUD-1 Statements and the checks for the Sanclemente Closings, Respondent was the ultimate supervising attorney for the non-lawyer assistants. (Admitted Facts ¶ 3). The Sanclemente Fimi's real estate escrow account bank records show that there were no deposits of funds from the buyers in the Coleman, Jones and Johnson closings and the buyers' costs were paid by others. (Admitted Facts ¶ 4, 5). In the Baldwin Closing, the buyers paid $2,500 towards their financial contribution of $9,774.61 as reflected on the HUD-1 Statement. The Sanclemente Firm real estate escrow account bank records show that $780.90 of Firm escrow account funds were used on behalf of the Baldwin's and the balance of their financial contribution was paid by others. (Admitted Facts ¶ 6).
From 2006 through 2008, John J. Sullivan, Esquire ("Sullivan") was a lawyer employed by the Sanclemente Firm. Respondent also had supervisory authority over the conduct of Sullivan. (Admitted Facts ¶10). While employed by the Sanclemente Firm, Sullivan, as closing attorney for the following real estate closings, represented the borrower and acted as agent for the lender:
Phyllis Graham
405 Llangollen Blvd.
New Castle, DE
405 Llangollen Blvd. Closing
10/30/08
Patricia Singleton
713 E. 7th Street
Wilmington, DE
713 E. 7th Street Closing
8/29/08
Lee Price & Tony Coleman
15 Cherry Road
New castle, DE
15 Cherry Road Closing
8/20/08
Gloria Henry
29 Dallas Road Closing
New Castle, DE
29 Dallas Road Closing
7/18/08
Evelyn Anderson Closing 123 Stroud Street Wilmington, DE
123 Stroud Street
6/19/08
Charles & Jamie Holmes
411 Jefferson Street
Wilmington, DE
411 Jefferson Street
4/28/08
Evelyn Anderson 1122 Ehn Street Wilmington, DE
1122 Elm Street Closing
4/1/08
Craig Williams
1009 W. Seventh Street
Wilmington, DE
1009 W. Seventh Street Closing
3/12/08
Dwayne & Sheree Manlove
104 Rita Road
New Castle, DE
104 Rita Road Closing
12/27/07
Anna Bennett
729 E. Tenth Street
Wilmington, DE
729 E. Tenth Street Closing
1/24/08
Dwayne & Sheree Manlove
230 Channing Drive Closing
12/10/07
230 Channing Drive
Bear, DE
Larry Manlove
54 University Avenue
New Castle, DE
54 University Avenue Closmg
12/3/07
Gary and Lillian Wilson
314 W. 31st Street
Wilmington, DE
314 W. 31st Street Closmg
10/23/07
Ramon Leak
2921 N. Broom Street
Wilmington, DE
2921 N. Broom Street Closmg
9/12/07
Clifton Coleman
2511 Heald Street
Wilmington, DE
2511 Heald Street Closing
8/30/07
Clifton Coleman
2142 Culver Drive
Wilmington, DE
2142 Culver Drive Closing
8/15/07
Derron Bo we
214 East 35th Street
Wilmington, DE
214 East 35th Street Closing
6/22/07
Derron Bowe
107 West 30th Street
Wilmington, DE
107 West 30th Street Closing
5/2/07
Kyle Steed
721 Wood Duck Court
Middletown, DB
721 Wood Duck Court Closmg
1/4/07
Reginald Johnson
417 E. 10th Street
Wihnington, DE
417 E. 10th Street Closing
11/20/06
Kyle Steed
133 Sterling Avenue
133 Sterling Avenue Closing
2/27/07
Claymont, DE
Theodore Jones
426 Eastlawn Avenue
Wilmington, DE
426 Eastlawn Avenue Closing
Collectively these real estate closings are referred to as the ("Sullivan Closings"). (Admitted Facts ¶ 11; Petition Ex. 2; Bxs. 6-27).
The Sanclemente Firm real estate escrow account hank records show there were no deposits of funds from the buyers in the Sullivan Closings with the exception of the Williams, Singleton and Bowe (107 W. 30th Street) closings and the buyers' costs were paid by others. (Admitted Facts ¶ 12, 13). In both the Sanclemente and Sullivan Closings funds were not disbursed according to the HUD-1 Statements. (Admitted Facts ¶ 7, 14). In the Sanclemente and Sullivan Closings funds were disbursed as reflected in the disbursement statement, an internal firm document not shared with the lenders. (Admitted Facts ¶ 8, 15). In the Sanclemente...
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