PER CURIAM.
The petition and accusations filed by the Committee on Practice of Law of the Minnesota State Bar Association against respondent, Essie W. Williams, asking for her disbarment or discipline as an attorney at law, were referred to the Honorable Karl Finkelnburg, a judge of the third judicial district, pursuant to Minn.St.1941, § 546.36, Mason St.1927, § 9319, to hear the evidence and make findings of fact. After a careful consideration of the evidence adduced before the referee, we find his findings of fact, which are adopted by this court, to be clearly sustained by the evidence.
Respondent, who was duly admitted to the bar of Minnesota in 1906, has been engaged in the practice of law since then, with
her residence and law office in St. Paul. In 1916, she entered into an oral agreement with a client, one Mrs. Luella Webb, whereby, for a consideration of $10,000 cash money then placed in escrow for payment to respondent by the escrow agent upon Mrs. Webb's death, respondent agreed to perform all legal services requested by Mrs. Webb during her lifetime and to advise and guide her in disposing of her property so that it would not be subject to tax. Respondent rendered legal services from time to time up to 1932. From 1932 until 1936, when Mrs. Webb died, respondent rendered no services, although she was legally bound to do so. Shortly after Mrs. Webb's death, the escrow agent delivered the $10,000 to respondent, but the latter neither reported nor included that amount in her 1936 state income tax return. No federal income tax return whatever was made by her in that year. At no time between 1916 and 1936 was any part of said $10,000 reported as income to either the federal or state authorities. The Minnesota board of tax appeals found specifically that her failure to report said amount as business income
or as nontaxable income was a wilful and deliberate attempt on her part to conceal receipt of the money and to evade the tax thereon. The referee found:
"11. That the failure of respondent to report said sum as an income either to the Federal or State Governments was a wilful and deliberate attempt on her part to conceal the receipt of said amount of money and to evade the tax thereon."
The referee further found:
"12. That on January 26, 1939, respondent was attorney for Miss Estella Simmons, and had been attorney for Miss Simmons for many years prior thereto. On said day Miss Simmons informed plaintiff that she, the said Estella Simmons, was soon to undergo a surgical operation which she might not survive. Respondent thereupon agreed to participate in a certain scheme for the distribution of Miss Simmons' property, in the event of her death, so as to avoid probate proceedings. The arrangement was that one Charles A. Powell should take said property, and should give to each of some thirty intended recipients negotiable bonds or cash in amounts set opposite their respective names in a certain list or written instructions which Miss Simmons had prepared. The remainder of her property was then to be divided equally among five residuary recipients designated in said written instructions. Respondent undertook to make such distribution in the event that said Powell died or was unable to act. The value of the property to be distributed was more than $500,000.
"13. That in furtherance of said scheme, Miss Simmons, upon advice of respondent, executed a bill of sale transferring to said Powell all her household goods and personal effects, of every nature. That she also conveyed to him all her real estate, at or about the same time. That she did not, however, assign or transfer to him any of her bonds or other securities; but that the same, together with a considerable amount of cash, were then contained in a certain safety deposit box in the First National Bank of St. Paul, numbered C-4690. That said box had been leased in the names of
Estella Simmons, Charles A. Powell and Addie Stephan on June 20, 1938; and Miss Simmons gave said Powell the key to it on or about January 26, 1939.
"14. That on February 8, 1939, substantially all of said cash, bonds and other securities were contained in a smaller safety deposit box in said bank, numbered D-143, while said deeds, bill of sale, written instructions and other papers belonging to Miss Simmons remained in the larger box, numbered C-4690. Said Powell had procured the smaller box in the names of himself and respondent on January 27, 1939, and respondent had signed the bank's card for it on or about that day.
"15. That on February 8, 1939, said Powell had been informed, and he in turn had informed respondent, that said Estella Simmons was about to die. That said Powell and respondent thereupon went to said bank and opened both said boxes. That respondent then wrongfully took from the smaller box certain United States Bonds of the par value of $25,000 and cash in the sum of $5,000; and told said Powell that she was taking it as fees. That said Powell then removed the rest of the cash and bonds
and took them to his home for the purpose of dividing and distributing them among the designated recipients.
"16. That respondent was not designated as a recipient in said written instructions, and that said instructions made no provision for paying her any fees. That she had no claim for fees for past services, except that she afterwards asserted a claim for $3,000 for advising Miss Simmons regarding the aforesaid scheme of distribution on January 26th, and a claim for $500 for advising her regarding some letters that she had received from a niece.
"17. That said Estella Simmons died on February 11, 1939. That soon thereafter said Powell informed respondent that he had made distribution to all the specific recipients except five, and that he was unable to complete the task. He then gave her five sealed envelopes, addressed respectively to said five, and asked her to deliver them. She accordingly delivered said five envelopes to five persons who came to her office and claimed them; but she did not examine
the contents of the envelopes; neither did she take any pains to establish the identity of the persons to whom she delivered them.
"18. That sometime after taking said $30,000 respondent declared that she had undertaken to use said sum to pay gift taxes, or estate or inheritance taxes, that might be assessed against the specific recipients, and to pay the costs of litigation to establish the validity of the distribution as gifts causa mortis, and that what remained was to be her fees for services in that regard. That respondent, however, never made any computation of such taxes, other than a rough preliminary estimate; that she took no steps to have them declared or assessed; that she kept no record of the persons to whom distribution was made or of the property distributed.
"19. That after making distribution to the specific recipients, as aforesaid, said Powell became alarmed and delivered the residue of the property to the administrators of the estate of said Estella Simmons. That respondent thereupon advised said Powell to destroy said written instructions; and the same were accordingly destroyed.
"20. That thereafter, about April 24, 1939, respondent commenced an action in the District Court of Ramsey County, Minnesota, against said administrators and others for a declaratory judgment that she held said $30,000 in trust for the purpose of paying taxes and expenses of litigation as aforesaid; and in said action respondent disclaimed any personal interest in said property, because the statute relating to conversations with a deceased person prevented her from testifying thereto.
"21. That pending said action the said United States bonds of the par value of $25,000 and cash in the sum of $5,000 were deposited by respondent with the First Trust Company of St. Paul, for safe keeping, and the receipt therefor was delivered to the Clerk of said District Court to be held subject to the further order of the Court."
On February 21, 1940, the Ramsey county district court made its findings of fact, conclusions of law, and order for judgment in
the above entitled action to the effect "that plaintiff was not entitled to hold, and did not hold, the currency and bonds in the face amount of $30,000, as Trustee, for the uses and purposes of paying inheritance taxes on, and sustaining by legal action the validity of, gifts to be made by Estella Simmons, deceased," and further determining "that said personal property was, and is, an asset of the estate of Estella Simmons, deceased, to be administered and distributed by the Probate Court." The order for judgment of the Ramsey county court further provided for the delivery of said $30,000 to the administrators of the estate. From an order denying her motion for the amendment of said findings of fact, conclusions of law, and order for judgment or for a new trial, respondent appealed to this court. Thereafter judgment was entered, and from this judgment respondent also appealed. The judgment was affirmed by this court on July 11, 1941. Williams v. Jayne, 210 Minn. 594, 299 N.W. 853. The report of that decision is made a part of the findings of fact herein.
The referee further found:
"23. That on or about October 9, 1940, an action was commenced by said administrators
against said respondent, in said District Court, to recover certain property belonging to the estate of said decedent and alleged to have been converted by said respondent. Said action...
