Monday, October 12, 2015

The Colorado Presiding Disciplinary Judge disbarred an attorney who defaulted on charges of msappropriation.

After he was ordered to return a real estate buyer's $400,000, it came back $100,000 short

Respondent represented Ernst Kappeli in a contract dispute arising out of the sale of real property. In 2006, Kappeli decided to sell a parcel of land to Alice Brien for $6,000,000.00. When the contract for sale was executed, Brien tendered $400,000.00 to Kappeli on the contract. Thereafter, Brien repudiated the contract and litigation followed.

During the course of the litigation, the trial court ordered Kappeli to return the $400,000.00, plus interest, to Brien. In compliance with the court’s order, Kappeli wiretransferred $400,000.00 to Respondent’s trust account on January 17, 2012. Instead of returning $400,000.oo to Brien as the court ordered, Respondent returned just $300,000.00 to Brien and knowingly converted $100,000.00 for own use and benefit. He then concealed his conversion until approximately November 2013...

This evidence presents a clear case of conversion of a substantial sum of money— misconduct compounded by Respondent’s effort to conceal his misappropriation for years. Respondent’s misconduct has caused his former client substantial financial harm. Furthermore, his disrespect for these proceedings after converting $100,000.00 from his client and thereafter absconding from Colorado demonstrates that Respondent has irreparably severed the bonds of trust he forged with his clients and betrayed the confidence of the Colorado bar. Respondent is not fit to practice law and is not worthy of the appellation of attorney. The Court disbars Respondent.

(Mike Frisch)

https://lawprofessors.typepad.com/legal_profession/2015/10/the-colorado-presiding-judge-disbarred-an-attorney-who-defaulted-on-charges-of-msappropriation-after-he-was-ordered-to-retu.html