| Description: |
Bellingham lawyer George Livesey Jr. (WSBA No. 02492, admitted 1949) has been ordered disbarred effective January 13, 1997, by order of the Supreme Court. The discipline imposed was pursuant to an October 1996 Stipulation for Disbarment. Livesey's disbarment was based upon several misappropriations of client money, ranging from $21,000 to $80,000, which he had received as executor of an estate and as attorney for the beneficiary of another probate estate; his preparation of a testamentary instrument for a nonrelative, which bequeathed to him $10,000; and his $50,000 unsecured loan from a long-time client without complying with the terms of the conflict-of-interest rules. The misappropriations of estate and client funds occurred between March 1994 and October 1995.
Procedural History
Disciplinary charges were filed against Livesey on March 18,1996. On April 11, 1996, the Supreme Court suspended Livesey pending the outcome of the disciplinary proceedings. On October 10, 1996, Livesey signed a Stipulation to Disbarment. The Stipulation provided for restitution of:
1.Three payments to a probate estate:
a. $4,885 principal plus $216.23 in costs;
b. $23,725.68 principal plus $2,500 in attorney's fees, with interest;
c. $60,000 principal and $20,000 in attorney's fees plus interest;
1. A payment of $80,122.27 principal, prejudgment interest of $4,807.32, attorney's fees of $3,500, and costs of $210, plus interest,
to the beneficiary of second probate estate.
The restitution amounts were based on a November 1995 judgment and three stipulated judgments entered in Whatcom County Superior Court in March 1996 and May 1996 in a case filed by the estate for which Livesey had acted as Executor and a case filed by one of his clients, a beneficiary to another estate. Pursuant to the terms of the stipulation to disbarment, Livesey also agreed to pay to the Bar Association costs and expenses of $3,475.60. The Disciplinary Board approved the stipulation on December 4, 1996. By Supreme Court order entered January 13,1997, Livesey was disbarred and ordered to pay restitution and costs as outlined above.
Facts
A. Theft at First Client's Funds
In March 1994, Livesey assumed his duties as executor of an estate, and received a $21,650.81 check on behalf of the Estate. He deposited the check in his IOLTA account instead of the estate's account, and misappropriated the money. As of the date of the stipulation, there were insufficient funds in the IOLTA account to disburse the $21,650.81 to the estate. In February 1995, Livesey cashed the estate's $67,298.95 certificates of deposit in return for a cashier's check made payable to the estate. Livesey deposited the cashier's check into his IOLTA account instead of the estate's account, and misappropriated the money. The beneficiaries of the estate learned of the misappropriations in the summer of 1995, after Livesey had resigned as executor. Livesey resigned after the beneficiaries began to question: 1) his delay in creating the trust provided for in their mother's will; 2) his preparation of the will which provided him with a $10,000 bequest; 3) his payment to himself of the $10,000 bequest; and 4) his payment to himself of $14,000 in attorney's fees without court approval or notice to the beneficiaries.
Livesey stipulated that the Association had sufficient evidence for a hearing officer to find that as executor of the estate, he violated RLD l.l(a) (commission of an act involving dishonesty), RPC 1.8(c) (prohibiting the preparation of a testamentary instrument which gives the lawyer a substantial bequest), and RPC 1.14 and 8.4(c) (relating to dishonesty and mishandling of client funds).
B. Improper Loan from Second Client
On September 26,1995, Livesey asked a long-time client to loan him $50,000 for four days. Prior to obtaining the loan, Livesey did not fully disclose to the client the terms of the loan, nor did he give her reasonable opportunity to seek the advice of independent counsel. The client loaned him the $50,000. Livesey used the $50,000 loan to repay the Estate referenced in Section II.A., above. The next day, Livesey gave the client a promissory note evidencing a promise to repay the loan on or before October 2, 1995, with $1,000 interest. Livesey did not repay the loan by October 2, 1995. On October 3, 1995, Livesey showed the client a check for approximately $80,000, payable to one of Livesey's other clients, and told her that he would deposit that check in his account and use it to repay the $50,000 loan. The client also asked Livesey for the $10,000 which Livesey had received on her behalf in connection with the sale of real estate in August 1995. On October 11, 1995, the client filed suit for money owing. On October 12, 1995, Livesey paid the client $62,000, using a $52,000 cashier's check purchased with funds drawn on this general business account and a $10,000 general business account check.
Livesey stipulated that the Association had sufficient evidence for a hearing officer to find that he violated RLD 1.1(a) (commission of an act involving dishonesty), and RPC 1.8(a)(1) and 1.8(a)(2) (improper business transaction with a client) when he obtained the loan from his client.
C. Forgery of Third Client’s Check and Misuse of Funds
Livesey was hired by the third client to represent her interests during the probate of her father's estate. On October 2, 1995, Livesey received an $80,122.27 check payable to the third client. drawn on her late father's estate account. He asked his client to endorse the check over to him so that he could deposit it in his IOLTA account. He said he would give her an IOLTA check for the ful1 amount as soon as the check cleared the account. On October 12, 1995, Livesey went to the bank on which the check was drawn and endorsed it payable to the order of himself, scratching out the "for deposit only" endorsement on the back of the check. Instead of cashing the check, the bank issued an $80,122.27 cashier's check payable to the client.
On October 12, 1995, Livesey endorsed the cashier's check over to himself, signing his client's name. He deposited the check into his general business account. Livesey did not have his client's permission to endorse the cashier's check on her behalf, nor did he have the client's permission to deposit the check into his general business account. Livesey used the funds from the $80,122.27 cashier's check to pay the second client $62,000.
Livesey stipulated that the Association had sufficient evidence for a hearing officer to find that his unauthorized endorsement of the $80.122.27 cashier's check, unauthorized deposit of the cashier's check into his general business account, and use of his client's monies to repay the second client $62,000 violated RLD l.l(a) (commission of an act involving dishonesty), and RPC 1.14 and 8.4(c) (relating to dishonesty and mishandling of client funds).
The hearing officer was Nancy Preg of Seattle. Livesey represented himself. The Bar Association was represented by disciplinary counsel Leslie Ching Allen.
|