Appellate Division: Second Judicial Department

M115441

E/ct

A. GAIL PRUDENTI, P.J.

WILLIAM F. MASTRO

REINALDO E. RIVERA

MARK C. DILLON

JOSEPH COVELLO, JJ.

2010-11068 In the Matter of Sandra Mara Sands, an attorney and counselor-at-law. Grievance Committee for the Tenth Judicial District, petitioner; Sandra Mara Sands, respondent. (Attorney Registration No. 2792265)

DECISION & ORDER ON MOTION

Motion by the Grievance Committee for the Tenth Judicial District for an order: (1) suspending the respondent from the practice of law, pursuant to 22 NYCRR 691.4(l)(1)(ii) and (iii), upon a finding that she is guilty of professional misconduct immediately threatening the public interest based upon substantial admissions under oath that she has committed acts of professional misconduct and/or other uncontroverted evidence of professional misconduct; (2) authorizing it to institute and prosecute a disciplinary proceeding based upon the allegations set forth in a petition dated October 25, 2010; and (3) referring the issues raised to a Special Referee to hear and report. The respondent was admitted to the Bar at a term of the Appellate Division of the Supreme Court in the Second Judicial Department on February 19, 1997.

Upon the papers filed in support of the motion and the papers filed in opposition thereto, it is

ORDERED that the motion is granted; and it is further,

ORDERED that pursuant to 22 NYCRR 691.4(l)(1)(ii) and (iii), the respondent, Sandra Mara Sands, is immediately suspended from the practice of law in the State of New York, pending further order of the Court; and it is further,

ORDERED that the respondent, Sandra Mara Sands, shall promptly comply with this Court's rules governing the conduct of disbarred, suspended, and resigned attorneys (see 22 NYCRR 691.10); and it is further,

ORDERED that pursuant to Judiciary Law § 90, during the period of suspension and until further order of this Court, the respondent, Sandra Mara Sands, is commanded to desist and refrain from (1) practicing law in any form, either as principal or agent, clerk, or employee of another, (2) appearing as an attorney or counselor-at-law before any court, Judge, Justice, board, commission, or other public authority, (3) giving to another an opinion as to the law or its application, or any advice in relation thereto, and (4) holding herself out in any way as an attorney and counselor-at-law; and it is further,

ORDERED that the Grievance Committee for the Tenth Judicial District is hereby authorized to institute and prosecute a disciplinary proceeding in this Court, against Sandra Mara Sands, based on the petition dated October 25, 2010; and it is further,

ORDERED that Robert A. Green, Chief Counsel, Grievance Committee for the Tenth Judicial District, 150 Motor Parkway, Suite 102, Hauppauge, New York 11788, is hereby appointed as attorney for the petitioner in such proceeding; and it is further,

ORDERED that within 20 days after service upon her of a copy of this order, the respondent, Sandra Mara Sands, shall serve an answer upon the Special Referee; and it is further,

ORDERED that the issues raised by the petition and answer are referred to the Hon. Abraham G. Gerges, a retired Justice of the Supreme Court, Kings County, 303 East 57th Street, Apt. 36A, New York, New York 10022, as Special Referee to hear and report, together with his findings on the issues, and to submit a report within 60 days after the conclusion of the hearing or the submission of post-hearing memoranda; and it is further,

ORDERED that if the respondent, Sandra Mara Sands, has been issued a secure pass by the Office of Court Administration, it shall be returned forthwith to the issuing agency and the respondent shall certify to the same in her affidavit of compliance pursuant to 22 NYCRR 691.10(f).

We find, prima facie, that the respondent is guilty of professional misconduct immediately threatening the public interest based upon substantial admissions she has made under oath that she committed acts of professional misconduct and other uncontroverted evidence of professional misconduct.

The investigation by the Grievance Committee for the Tenth Judicial District (hereinafter Grievance Committee) emanated from a complaint dated March 15, 2010, filed by Jose Jacon alleging that the respondent converted settlement proceeds. In September 2007, Jacon retained the respondent to represent him in a Workers' Compensation matter, and to assert a claim under Section 14-a of the Workers' Compensation Law, against his former employer, J & K Three, Ltd. (hereinafter J & K). The Workers' Compensation matter was settled in September 2008 for the sum of $34,160 and Jacon received payment pursuant to the settlement directly from Public Service Mutual. Jacon's claim under Section 14-a was settled in October 2008 for the sum of $33,660. A Stipulation to Forego Litigation on Section 14-a, dated October 31, 2008, provided that J & K was to remit monthly payments to the respondent's law firm, with the first payment in the sum of $3,660 due on November 1, 2008, and thereafter payments in the sum of $3,000 due on the first of every month until paid in full. The respondent allegedly was to remit to Jacon his share of the settlement once all of the payments had been received.

The respondent admitted at her examination under oath before the Grievance Committee that J & K remitted check no. 3152, dated October 31, 2008, payable to "Sandra Sands and Associates, PLLC," in the sum of $3,660, as the first payment pursuant to the stipulation. After receiving check no. 3152, the respondent failed to deposit it into her IOLA account, or any other trust account, on behalf of the client. Rather, she deposited the check into her operating account, and converted the funds to pay for her personal expenses. The respondent stipulated, through counsel, that J & K remitted seven checks to her, all payable to her or her law firm in payment of the amount owed pursuant to the stipulation. The respondent admitted under oath that she deposited the checks into her operating account and used the funds for her personal expenses. The respondent further admitted under oath that when Jacon inquired about the settlement in November 2009, she falsely misrepresented to him that the payments were still being made by J & K, when, in fact, the payments had been completed. The respondent provided Jacon with a partial payment of $5,000 on or about November 18, 2009. The respondent admitted that she finally remitted Jacon 's funds to him by check, dated March 30, 2010, in the amount of $17,440, which constituted the balance due him less her legal fee.

Submitted with the Grievance Committee's motion papers is a petition dated October 25, 2010, containing four charges of professional misconduct against the respondent.

In opposition, the respondent disputes the contention that she constitutes an immediate threat to the public. She contends that she should not be penalized for her candor and cooperation with the investigation. Her conversion of client funds in 2008 took place during a time of extreme financial and emotional stress. She believed at the time that she would replenish the funds before they became due and owing to her client. She has since borrowed the money and paid the client in full. She is deeply regretful and accepts full responsibility for her actions.

Based on the foregoing, the Grievance Committee's motion is granted, the respondent is immediately suspended from the practice of law, pursuant to 22 NYCRR 691.4(l)(1)(ii) and (iii), pending further order of this Court, the Grievance Committee is authorized to institute and prosecute a disciplinary proceeding against her, and the matter is referred to a Special Referee to hear and report.

PRUDENTI, P.J., MASTRO, RIVERA, DILLON and COVELLO, JJ., concur.

ENTER:

Matthew G. Kiernan

Clerk of the Court