Office of Lawyer Regulation v. Stern (In re Stern), 2013AP149–D.
| Decision Date | 21 May 2013 |
| Docket Number | No. 2013AP149–D.,2013AP149–D. |
| Citation | 2013 WI 46,830 N.W.2d 674,347 Wis.2d 552 |
| Parties | In the Matter of DISCIPLINARY PROCEEDINGS AGAINST Walter W. STERN, III, Attorney at Law: Office of Lawyer Regulation, Complainant, v. Walter W. Stern, III, Respondent. |
| Court | Wisconsin Supreme Court |
OPINION TEXT STARTS HERE
ATTORNEY disciplinary proceeding. Attorney's license suspended.
[347 Wis.2d 553]¶ 1 We review, pursuant to SCR 22.17(2),1 the report of the referee, Richard C. Ninneman, recommending the court suspend Attorney Walter W. Stern, III's license to practice law for a period of two years for professional misconduct resulting in his federal criminal conviction for conspiring to commit money laundering in violation of 18 U.S.C. § 1956(h). 2 No appeal has been filed.
¶ 2 We approve and adopt the referee's findings of fact and conclusions of law. We conclude that the seriousness of Attorney Stern's misconduct warrants a two-year license suspension. The Office of Lawyer Regulation (OLR) does not seek costs. No costs will be imposed.
¶ 3 Attorney Stern has been licensed to practice law in Wisconsin since 1974. He has been subject to a number of previous disciplinary proceedings. In August of 1988, the Board of Attorneys Professional Responsibility (BAPR), the predecessor to the OLR, imposed a private reprimand on Attorney Stern for professional misconduct consisting of communicating on the subject of the representation with a party he knew to be represented by a lawyer without the consent of the lawyer. In September of 1992, BAPR publicly reprimanded Attorney Stern for professional misconduct consisting of advancing a factual position without a basis; failing to maintain the respect due courts of justice and judicial officers; violating the Attorney's Oath; and engaging in offensive personality. Public Reprimand of Walter W. Stern III, No. 1992–11. In November of 1993, Attorney Stern consented to a private reprimand for professional misconduct consisting of failing to pay a third-party lien from settlement proceeds after receiving notice of the lien. BAPR Private Reprimand, No. 1993–25. In March of 2008, Attorney Stern consented to a private reprimand for professional misconduct consisting of committing criminal acts that reflected adversely on his honesty, trustworthiness, or fitness as a lawyer. The discipline was a result of Attorney Stern pleading no contest to a second and third offense of Operating a Motor Vehicle While Under the Influence. OLR Private Reprimand, No. 2008–08.
¶ 4 The disciplinary complaint now before us involves allegations that Attorney Stern engaged in money laundering in connection with funds received by a party, N.L.A., pursuant to a marital settlement agreement (MSA). On or about June 1, 2005, N.L.A. and her then-husband entered into an MSA under which N.L.A. was to receive $95,000. On or about June 22, 2005, N.L.A.'s divorce attorney deposited $29,000 toward the MSA in a trust account.
[347 Wis.2d 555]¶ 5 Attorney Stern was acquainted with N.L.A. and referred her to a bankruptcy attorney. On or about September 30, 2005, N.L.A. filed a Chapter 7 bankruptcy petition. N.L.A. concealed the MSA and the funds received and due under the MSA from her bankruptcy attorney.
¶ 6 In October of 2005, N.L.A.'s divorce attorney received a second MSA payment of $20,000.
¶ 7 On or about January 14, 2006, the bankruptcy court determined N.L.A.'s petition to be a no-asset case and discharged her debts.
¶ 8 On or about January 17, 2006, N.L.A.'s divorce attorney received a third MSA payment of $20,000.
¶ 9 On or about March 3, 2006, N.L.A. gave the funds from the three MSA payments to Attorney Stern. Attorney Stern then purchased a certificate of deposit (CD) from a bank in his own name, with the proceeds going to N.L.A. upon his death.
¶ 10 In April of 2006, N.L.A. received a fourth MSA payment of $26,000.
¶ 11 In January of 2007, Attorney Stern used the proceeds from the March 2006 CD and the fourth MSA payment to purchase another CD, also in his name, payable to N.L.A. upon his death.
¶ 12 On December 20, 2011, a federal grand jury indicted Attorney Stern for violating 18 U.S.C. § 1956(h) by knowingly conspiring with N.L.A. to commit money laundering to conceal the $95,000 N.L.A. received, thereby committing bankruptcy fraud.
¶ 13 On June 20, 2012, a federal jury found Attorney Stern guilty of the money laundering charge. On January 9, 2013, Attorney Stern was sentenced to federal prison for one year and one day.
[347 Wis.2d 556]¶ 14 On January 22, 2013, the OLR filed a complaint alleging that by engaging in conduct resulting in his federal criminal conviction for conspiring to commit money laundering in violation of 18 U.S.C. § 1956(h), Attorney Stern committed a criminal act that reflected adversely on his honesty, trustworthiness, or fitness as a lawyer in other respects, contrary to SCR 20:8.4(b)3 and engaged in conduct involving dishonesty, fraud, deceit, or misrepresentation, contrary to SCR 20:8.4(c).4
¶ 15 On February 4, 2013, the parties filed a stipulation and no contest plea agreement whereby Attorney Stern pled no contest to the misconduct alleged in the complaint. Attorney Stern agreed that the referee could use the allegations of the complaint as an adequate factual basis for a determination of misconduct and for the discipline requested. Attorney Stern further agreed that it would be appropriate for this court to impose the level of discipline sought by the OLR Director, namely, a two-year suspension of Attorney Stern's license to practice law in Wisconsin. The parties requested that the referee approve the stipulation and file a report finding facts and misconduct consistent with the stipulation and recommending that Attorney Stern's license to practice law be suspended for two years.
¶ 16 On ...
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Office of Lawyer Regulation v. Stern (In re Stern), 2013AP149–D.
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