State Bar Of California Acts Against Members Involved In Various Types Of Client Ripoffs

The Sate Bar of California recently published its periodic 'gossip sheet' announcing the discipline meted out to some of its wayward members.

The following lawyers were disciplined for either playing fast & loose with client's trust funds, attempting to improperly rip off clients out of unwarranted legal fees, or being involved in some form of loan modification scheme:

• CALEB PAUL LEYS [#171683], 70, of Beverly Hills, was suspended for one year, stayed, and placed on one year of probation with an actual 120-day suspension that will continue until he pays restitution. He was ordered to comply with rule 9.20 of the California Rules of Court. The order took effect March 16, 2013.
  
  Leys stipulated that he failed to perform legal services with competence, to return unearned fees and to promptly respond to reasonable status inquiries in connection with a home loan modification. The client paid Leys $2,995 in advance attorney fees and Leys pledged to file a civil suit if he was unable to negotiate with the lender. Instead, he performed no services of value and failed to return any part of the unearned fees.
  
  Leys was previously disciplined for similar misconduct that occurred between March and September 2009. Leys failed to perform legal services with competence and return unearned fees in two client matters involving loan modifications, and in a third matter, engaged in the unauthorized practice of law and collected an illegal fee.
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• CURTIS GEORGE MUCK [#190328], 42, of Rolling Hills Estates, was suspended for two years, stayed, placed on three years of probation with an actual six-month suspension, and was ordered to take the MPRE . The order took effect March 16, 2013.
  
  Muck committed misconduct in three client matters, all of which involved aiding in the unauthorized practice of law. In one of the matters, Muck also shared fees with a non-lawyer and failed to cooperate with a disciplinary investigation. In that matter, he allowed a non-attorney to give legal advice to a client and to collect fees from her, which the two later shared. Muck later failed to acknowledge a letter from a State Bar investigator asking him to respond to complaints the client made against him.
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• MITCHELL BERENSON [#183166], 48, of Los Angeles, was suspended for one year, stayed, and he was placed on probation for one year subject to conditions, including paying restitution and passing the MPRE. The order took effect March 16, 2013.
  
  Berenson stipulated to four acts of misconduct in one client matter. Berenson failed to perform legal services with competence in an immigration matter, failed to respond to repeated inquiries from his client regarding the immigration matter, failed to return advance fees, and failed to cooperate and participate in the State Bar investigation. Berenson was ordered to pay his former client $1,500 in restitution, plus interest.
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• CHARLOTTE SPADARO [#190328], 61, of Riverside, was suspended for one year, stayed, and placed on three years of probation with an actual six-month suspension until she makes restitution in the amount of $26,500, plus interest. She was also ordered to take the MPRE. The order took effect March 22, 2013.
  
  Spadaro was found culpable of failing to account for client funds, failing to return advanced fees and unused advanced costs totaling $7,500, and three counts of entering into an improper business relationship with a client.
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• LOUIS GORDON BRUNO [#137898], 60, of Escondido, was suspended for two years, stayed, placed on two years of probation with an actual six-month suspension, and was ordered to take the MPRE and to pay restitution. The order took effect March 23, 2013.
  
  Bruno stipulated to three counts of misconduct in one client matter, collecting an illegal fee, holding himself out to be eligible to practice law when he wasn’t and misrepresenting his entitlement to practice law. [...] Bruno was ordered to pay $1,500 in restitution, plus interest.
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• MARIE DARLENE ALLEN [#138263], 63, of Cypress, was suspended for one year, stayed, placed on one year of probation with an actual 30-day suspension and was ordered to take the MPRE. The order took effect April 6, 2013.
  
  Allen was found culpable of two counts of misconduct: issuing numerous checks from her client trust account without sufficient funds to cover them and failure to cooperate with a disciplinary investigation by not responding in a timely matter to three letters she received from a State Bar investigator.
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• ALLYSON ERWIN BAUTISTA [#202023], 55, of Escondido, was suspended for three years, stayed, placed on three years of probation with an actual six-month suspension and was ordered to take the MPRE and comply with rule 9.20 of the California Rules of Court. The order took effect April 6, 2013.
  
  Bautista stipulated that he charged and collected an unconscionable fee and failed to provide a client with a full accounting of a settlement the client received.
  
  Bautista settled his client’s personal injury matter for $15,000 then essentially double billed the client, withholding $2,967.68 for hourly fees as well as $5,000 in contingency fees for the same services. Bautista also failed to provide the client with an itemized list of “administrative costs” he charged for his services.
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• NICOLE ROSIE GALLEGOS [#231744], 36, of Irvine, was suspended for two years, stayed, and placed on two years of probation with an actual nine-month suspension that will continue until she pays restitution. She was also ordered to take the MPRE and comply with rule 9.20 of the California Rules of Court. The order took effect April 6, 2013.
  
  Gallegos stipulated to 15 counts of misconduct in seven loan modification matters, six of which involved collecting illegal fees from out-of-state clients. Gallegos also committed multiple counts of unauthorized practice of law. She has been ordered to pay $ 11,979.98 in restitution.
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• TANYA CORA ZEROUNIAN [#235207], 36, of Simi Valley, was suspended for two years, stayed, placed on 18 months of probation with an actual six-month suspension and was ordered to take the MPRE, comply with rule 9.20 of the California Rules of Court and pay restitution. The order went into effect April 6, 2013.
  
  Zerounian stipulated to misconduct in three client matters. In each instance, Zerounian failed to prepare and file clients’ bankruptcy petitions, to respond to inquiries about the clients’ cases and to return unearned fees. Zerounian also failed to respond to allegations in a complaint one of the clients made to the State Bar. She was ordered to pay $5,600 in restitution, plus interest.

Source: California Bar Journal (June 2013): Suspensions/Probation.