Appellate Division: Second Judicial Department

M272329

E/afa

ALAN D. SCHEINKMAN, P.J.

WILLIAM F. MASTRO

REINALDO E. RIVERA

MARK C. DILLON

LEONARD B. AUSTIN, JJ.

2019-11990 In the Matter of Jorge A. Vasquez, admitted as Jorge Armando Vasquez, an attorney and counselor-at-law. Grievance Committee for the Second, Eleventh, and Thirteenth Judicial Districts, petitioner; Jorge A. Vasquez, respondent. (Attorney Registration No. 5223870)

DECISION & ORDER ON MOTION

Motion by the Grievance Committee for the Second, Eleventh, and Thirteenth Judicial Districts to suspend the respondent from the practice of law, pursuant to 22 NYCRR 1240.9 (a)(2) and (5), upon a finding that he is guilty of professional misconduct immediately threatening the public interest, and to appoint 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 April 30, 2014, under the name Jorge Armando Vasquez. The Grievance Committee served and filed a notice of petition and a verified petition, both dated October 24, 2019, and the respondent served and filed a verified answer dated December 4, 2019. Subsequently, the Grievance Committee filed a statement of disputed and undisputed facts dated January 14, 2020.

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 1240.9(a)(2) and (5), the respondent, Jorge A. Vasquez, admitted as Jorge Armando Vasquez, 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, Jorge A. Vasquez, admitted as Jorge Armando Vasquez, shall promptly comply with this Court's rules governing the conduct of disbarred or 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, Jorge A. Vasquez, admitted as Jorge Armando Vasquez, 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, Jorge A. Vasquez, admitted as Jorge Armando Vasquez, 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 the issues raised are referred to the Honorable Charles J. Thomas, 50 East 89th Street, #10-F, New York, NY 10128, as Special Referee, to hear and report, with the hearing to be completed within 60 days of the date of this decision and order on motion, or as soon thereafter as practicable, and the report, which contains his findings on the issues and charges, to be submitted within 60 days after the conclusion of the hearing or the submission of post-hearing memoranda.

We find, prima facie, that the respondent, Jorge A. Vasquez, admitted as Jorge Armando Vasquez, is guilty of professional misconduct immediately threatening the public interest based on uncontroverted evidence that he misappropriated client funds entrusted to him.

The respondent represented the plaintiff in a divorce action entitled Isakharov v L. Isakharov, commenced in the Supreme Court, Queens County, under Index No. 4233/2017. The parties agreed to sell the marital residence, and, on August 13, 2018, the parties and their attorneys signed a stipulation providing for the distribution of the sale proceeds. The stipulation directed the respondent to hold, in an attorney escrow account maintained by him (1) $200,000 of the sale proceeds belonging to both parties to cover any marital debt to be maintained at Chase Bank, and (2) $10,000 from his client's share of the sale proceeds for any "default amount" owed on the mortgage encumbering the marital residence.

The respondent attended the real estate closing as Mr. Isakharov's attorney on August 14, 2018, and received three checks, in the sums of $460,921.54, $10,000, and $41,471.07, totaling $512,392.61. On that same day, the respondent deposited the $460,921.54 and $10,000 checks into his non-escrow checking account at Bank of America, entitled "Jorge Vasquez's, New York Litigators, Inc." (hereinafter the Litigators account), and deposited the $41,471.07 check into his non-escrow checking account at Bank of America, entitled "Vasquez & Associates Real Estate Inc." (hereinafter the Realty account).

By check no. 1341, drawn on the Litigators account on August 27, 2018, the respondent paid his client the sum of $290,392.60. After accounting for the respondent's fee, the respondent was required to hold the sum of $210,000 in escrow pursuant to the August 13, 2018, stipulation. However, between August 14, 2018, and August 31, 2018, the respondent repeatedly withdrew funds from the Litigators account to pay personal credit cards, reducing the balance to $42,304 as of August 31, 2018. Additionally, the respondent issued a check in the sum of $20,000 payable to an individual unrelated to the Isakharov transaction, which cleared the Realty account on August 15, 2018, largely against the money deposited into the Realty account from the Isakharov transaction, and made other unrelated transactions, reducing the balance in the Realty account as of August 31, 2018, to $600.41. Therefore, the total funds available in both accounts was reduced well below the amount that the respondent was required to hold for the Isakharov transaction pursuant to the August 13, 2018, stipulation.

At his examination under oath, the respondent admitted that at the time he received the Isakharov sale proceeds, he did not maintain an escrow account, despite signing a stipulation requiring him to deposit $210,000 into an escrow account. In addition, the respondent admitted that he depleted the Isakharov funds he was required to hold in escrow by making payments towards his personal credit cards. The respondent explained that he was anticipating the receipt of funds from another transaction, and intended to replenish the Isakharov funds.

In his opposition papers, the respondent provided mitigating personal circumstances, including his diagnosis of post-traumatic stress disorder. However he reiterated his prior statements that he deposited his client's funds into a non-escrow account and failed to safeguard these funds by allowing them to be depleted.

We find that the Grievance Committee has sufficiently demonstrated that the respondent poses an immediate threat to the public interest based on his intentional and repeated misappropriation of client funds for personal use.

Based on the foregoing, the motion is granted, the respondent is immediately suspended from the practice of law, pursuant to 22 NYCRR 1240.9(a)(2) and (5), pending further order of this Court, and the matter is referred to a Special Referee, to hear and report.

SCHEINKMAN, P.J., MASTRO, RIVERA, DILLON and AUSTIN, JJ., concur.

ENTER:

Aprilanne Agostino

Clerk of the Court