Discipline Notice - John G. Gissberg

License Number: 19677
Member Name: John G. Gissberg
Discipline Detail
Action: Suspension
Effective Date: 4/30/2009
RPC: 1.14 - (prior to 9/1/2006) Preserving Identity of Funds and Property of a Client
1.15A - Safeguarding Property
1.15B - Required Trust Account Records
8.4 (l) - Violate ELCs
Discipline Notice:
Description: John G. Gissberg (WSBA No. 19677, admitted 1990), of Seattle, was suspended for nine months, effective April 30, 2009, by order of the Washington State Supreme Court following a default hearing. This discipline is based on conduct involving failure to adequately safeguard client property in his possession, trust-account irregularities, and non-cooperation in a Bar Association investigation.

In 2005, the Bar Association investigated an overdraft on Mr. Gissberg's trust account. In that investigation, Mr. Gissberg failed to respond to two letters from the Association requesting his response. Consequently, the Association was required to take Mr. Gissberg's deposition. Following the deposition, in August 2006, disciplinary counsel sent Mr. Gissberg a letter dismissing the investigation but warning him that "if you fail to cooperate in the future, you should expect that we will seek disciplinary sanctions against you."

On April 9, 2007, Mr. Gissberg presented two checks against his IOLTA account in excess of the funds on deposit. These items were paid, resulting in an overdraft. On April 18, 2007, the Bar Association received a notification from the bank that Mr. Gissberg's IOLTA account was overdrawn and sent him a letter requesting his response to the overdraft notice. Mr. Gissberg failed to respond. On April 30, 2007, a third check was presented against Mr. Gissberg's IOLTA account, for which there were insufficient funds on deposit. The account incurred continuous overdraft fees each day from April 9 until May 17, 2007, when Mr. Gissberg deposited money into the account. On May 23, 2007, the Bar Association sent Mr. Gissberg a certified letter requesting his response by June 5, 2007. The letter was returned to the Bar Association because Mr. Gissberg failed to claim the letter from the post office. On June 18, 2007, the Bar Association issued a subpoena duces tecum, requiring Mr. Gissberg's attendance at a deposition scheduled for July 10, 2007. The subpoena requested the production of documents. Mr. Gissberg did not appear for the deposition. On July 17, 2007, the Bar Association filed a petition for interim suspension with the Washington State Supreme Court; the Court suspended Mr. Gissberg from the practice of law on October 12, 2007. Mr. Gissberg did not file an affidavit of compliance in accordance with ELC 14.3 following his suspension. Mr. Gissberg subsequently appeared for a deposition on December 17, 2007.

In 2007, Mr. Gissberg did not keep a trust-account register, did not keep a running balance of the funds in his trust account, and did not reconcile his monthly bank statements to any other document. In fact, he reviewed his bank statements only once a year. He did not keep individual client ledgers, but instead wrote the client's name on the checks deposited to, or written on, the account. Mr. Gissberg relied solely on memory to determine whose money was in the trust account. Consequently, he did not always know whose funds were in the trust account, or in what amounts. Mr. Gissberg's April 2007 overdrafts of his trust account occurred because of the deficiencies in his record-keeping.

In September 2007, Mr. Gissberg represented client A in an immigration matter. Mr. Gissberg received a fee of $2,400 from client A, which he considered earned upon receipt. On September 28, 2007, Mr. Gissberg deposited $1,800 into his trust account, and $600 into his general account. He accomplished this by depositing one check into two or more accounts at the same time, commonly known as a split deposit.

In 2007, Mr. Gissberg represented clients B and C. Mr. Gissberg held the funds given to him for legal services by clients B and C in his trust account. In April 2007, Mr. Gissberg removed the money from trust because he believed he had earned the fees. Mr. Gissberg did not provide clients B or C with a bill showing that he had earned the money they paid him prior to removing the money from the trust account.

Mr. Gissberg's conduct violated former RPC 1.14 and current RPC 1.15A and RPC 1.15B, requiring all funds of clients paid to a lawyer or law firm to be deposited into one or more identifiable interest-bearing trust accounts maintained as set for the in the rules and that no funds belonging to the lawyer or law firm be deposited therein; and RPC 8.4(l), prohibiting a lawyer from violating a duty or sanction imposed by or under the Rules of Lawyer Conduct in connection with a disciplinary matter (here, ELC 5.3(f) and ELC 14.3).

Sachia Stonefeld Powell represented the Bar Association. Mr. Gissberg represented himself. William S. Bailey was the hearing officer.


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