Appellate Division: Second Judicial Department

M237308

E/ct

RANDALL T. ENG, P.J.

WILLIAM F. MASTRO

REINALDO E. RIVERA

MARK C. DILLON

SHERI S. ROMAN, JJ.

2017-05866 In the Matter of Joseph A. Morrone, admitted as Joseph A. Morrone, Jr., an attorney and counselor-at-law. Grievance Committee for the Tenth Judicial District, petitioner; Joseph A. Morrone, respondent. (Attorney Registration No. 1726082)

DECISION & ORDER ON MOTION

Motion by the Grievance Committee for the Tenth Judicial District (1) to suspend the respondent from the practice of law pending the consideration of charges of professional misconduct against him pursuant to 22 NYCRR 1240.09(a)(3), (4), and (5), upon a finding that he is guilty of professional misconduct immediately threatening the public interest based upon his failure to cooperate with the lawful demands of the Grievance Committee, willful failure or refusal to pay money owed to a client, and other uncontroverted evidence of professional misconduct; (2) to notify the respondent, pursuant to 22 NYCRR 1240.9(b), that he may be disbarred by the Court without further notice in the event he continues to fail to respond to or appear for further investigatory or disciplinary proceedings within six months; and (3) pursuant to 22 NYCRR 1240.9(c), to refer 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 May 6, 1981, under the name Joseph A. Morrone, Jr. The Grievance Committee has served and filed a notice of petition dated April 28, 2017, and a verified petition dated April 25, 2017.

Upon the papers filed in support of the motion and no papers having been filed in opposition or in relation thereto, it is

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

ORDERED that pursuant to 22 NYCRR 1240.09(a)(3), (4), and (5), the respondent, Joseph A. Morrone admitted as Joseph A. Morrone, Jr., 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, Joseph A. Morrone, admitted as Joseph A. Morrone, Jr., shall promptly comply with the rules governing the conduct of disbarred and suspended attorneys (see 22 NYCRR 1240.15); 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, Joseph A. Morrone, admitted as Joseph A. Morrone, Jr., 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 himself out in any way as an attorney and counselor-at-law; and it is further,

ORDERED that if the respondent, Joseph A. Morrone, admitted as Joseph A. Morrone, Jr., 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 his affidavit of compliance pursuant to 22 NYCRR 1240.15(f); and it is further,

ORDERED that pursuant to 22 NYCRR 1240.9(b), in the event that Joseph A. Morrone, admitted as Joseph A. Morrone, Jr., continues to fail to respond to or appear for further investigatory or disciplinary proceedings within six months of the date of this decision and order on motion, he may be disbarred by the Court without further notice; and it is further,

ORDERED that the issues raised by the verified petition and any answer thereto are referred to the Honorable Elaine Jackson Stack, c/o Barket Marion Epstein & Kearn, LLP, 666 Old County Road, Suite 700, Garden City, NY 11530, as Special Referee, to hear and report, with the hearing to be completed within 60 days of the date of this order, or as soon as practicable, and to submit a report, which contains her findings on the issues, within 60 days after the conclusion of the hearing or the submission of post-hearing memoranda.

We find, prima facie, that the respondent is guilty of professional misconduct immediately threatening the public interest based upon his failure to cooperate with the lawful demands of the Grievance Committee for the Tenth Judicial District, his willful failure or refusal to pay money owed to his clients, and other uncontroverted evidence of professional misconduct.

The Cucuzza Complaint

On or about July 5, 2016, the Grievance Committee received a complaint of professional misconduct against the respondent from Nancy Cucuzza. According to the complaint, Cucuzza retained the respondent to represent her in the sale of real property located in Staten Island, New York. The respondent received a $130,000 downpayment check from the purchasers, which he deposited into his Capital One Bank, account no. ending 8719, entitled "MORRONE & ASSOCIATES PC, IOLA-ATTORNEY ESCROW ACCOUNT" (hereinafter the IOLA account), on February 19, 2016. Pursuant to the terms of the contract of sale, the respondent was required to hold the downpayment in the IOLA account until closing or termination of the contract.

At the closing on June 10, 2016, the respondent issued IOLA check no. 1304 to his client, Cucuzza, in the sum of $129,000. On June 20, 2016, check no. 1304 was returned as dishonored due to insufficient funds in the IOLA account. On June 23, 2016, the respondent issued a replacement check to Cucuzza, check no. 1190, from another account he maintained at Capital One Bank, account number ending 0244, entitled "MORRONE & ASSOCIATES PC, SPECIAL ACCOUNT 1" (hereinafter the Special Account). On June 28, 2016, the replacement check was returned as the Special Account was "closed." Cucuzza alleges that she has not received her funds from the respondent.

By letter dated July 14, 2016, the Grievance Committee notified the respondent of the Cucuzza complaint, and requested his response within 10 days. On July 26, 2016, the respondent called the Grievance Committee's office, advising that he had just received the July 14, 2016, letter, as his office had moved to Staten Island. The respondent provided the Grievance Committee with his new law office address, and stated that he would submit his written response to the complaint within 7 days, but he failed to do so. A second request for a response to the Cucuzza complaint was made by letter dated September 1, 2016. After receiving no response, by letter dated October 12, 2016, the Grievance Committee sent a third request to the respondent, by both certified and regular mail. No response was forthcoming. A fourth request was made by letter dated November 15, 2016, sent by the Grievance Committee to the respondent by both certified and regular mail. The respondent failed to submit a written response.

The Donnaruma Complaint

On or about September 7, 2016, the Grievance Committee received a complaint of professional misconduct against the respondent from Lori A. Donnaruma. According to the complaint, Donnaruma retained the respondent to represent her in the sale of real property located in Bayside, New York. The respondent received a $21,500 downpayment check from a prospective purchaser which he deposited into his IOLA account on February 25, 2016. However, that transaction did not close and on April 27, 2016, the respondent also deposited a $22,500 downpayment check from the ultimate purchasers into his IOLA account. On April 28, 2016, the respondent withdrew $21,500 from the IOLA account and had a cashier's check issued in the same amount to the prospective purchaser, as a refund of the downpayment from the cancelled transaction.

At the closing on August 19, 2016, the respondent issued IOLA check no. 1305 to his client, Donnaruma, in the sum of $22,500. That day, check no. 1305 was dishonored by the respondent's bank due to insufficient funds in the IOLA account. On August 30, 2016, the respondent issued a replacement check to Donnaruma, check no. 1189, from the Special Account. Ms. Donnaruma was unable to negotiate the replacement check as the Special Account was closed. Ms. Donnaruma alleges that she has not received her funds from the respondent.

By letter dated September 12, 2016, the Grievance Committee notified the respondent of the Donnaruma complaint, and requested his response within 10 days. The respondent failed to submit a written response. A second request was made by letter dated October 12, 2016, sent to the respondent by both certified and regular mail. After receiving no response, the Grievance Committee made a third request by letter dated November 15, 2016, sent by both certified and regular mail. The respondent failed to submit a written response.

The Dishonored Check Complaint

By letter dated September 23, 2016, the Grievance Committee notified the respondent that an investigation had been initiated based upon a notice from the Lawyers' Fund for Client Protection, which indicated that one of the respondent's IOLA account checks had been dishonored. The respondent was asked to provide an answer, and to produce certain bank and bookkeeping records for his IOLA account within 20 days. The respondent failed to respond. A second request was made by letter dated November 15, 2016, sent by the Grievance Committee to the respondent by both certified and regular mail. Both certified mailings were returned as "undeliverable." The letters sent by regular mail were not returned. The respondent failed to respond.

On December 14, 2016, the respondent was personally served with judicial subpoenas requiring him to appear at the Grievance Committee's office on December 28, 2016, to give testimony under oath and to produce documentation in connection with the above-referenced matters. On December 27, 2016, the respondent requested an adjournment so that he could retain counsel and the appearance was adjourned to January 11, 2017, which was confirmed by letter dated January 6, 2017. On January 10, 2017, the respondent requested and received another adjournment to January 20, 2017. On January 19, 2017, the respondent called the Grievance Committee and left a voice mail message stating that he would not be appearing the next day, and he subsequently advised the Grievance Committee that he would call the following week to set a new date for his examination under oath but he failed to do so.

Pursuant to subpoena, the Grievance Committee obtained records from Capital One Bank for the period from January 2016 through October 2016. Those records reflect that while the respondent was entrusted with the downpayment funds being held in both the Cucuzza and Donnaruma transactions, the balance in his IOLA account fell below the amount he was required to maintain on multiple dates. By March 15, 2016, the respondent's IOLA account balance was $0, well below the $151,500 he was required to maintain for the Cucuzza and Donnaruma transactions.

Based upon the foregoing, the motion is granted, the respondent is immediately suspended from the practice of law pursuant to 22 NYCRR 1240.9(a), and the matter is referred to a Special Referee, to hear and report.

ENG, P.J., MASTRO, RIVERA, DILLON and ROMAN, JJ., concur

ENTER:

Aprilanne Agostino

Clerk of the Court