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Stephen D. Cramer (WSBA No. 9085, admitted 1979), of Federal Way, was disbarred, effective February 11, 2010, by order of the Washington State Supreme Court, following an appeal. This discipline is based on conduct involving dishonesty, illegal conduct, deceit, and misrepresentation of his tax liabilities. For more information, see in re Disciplinary Proceeding against Cramer Wn.2d, P.3d. Stephen D. Cramer is to be distinguished from Steven A. Kraemer of Portland, Oregon.
In 1995, the Department of Revenue (DOR) issued Mr. Cramer, a solo practitioner, a certificate of registration for Stephen D. Cramer, PLLC. Mr. Cramer was the sole owner of the PLLC. In 2003, Mr. Cramer stopped filing quarterly excise tax statements and eventually stopped paying taxes altogether. By 2006, he owed nearly $10,000 in back taxes. In April 2006, the DOR notified Mr. Cramer of a pre-hearing scheduled in May to discuss repayment of his tax deficiencies and filing of delinquent tax statements. Mr. Cramer did not appear at the hearing.
In August 2006, the DOR notified Mr. Cramer of a September 2006 hearing to determine the revocation of his PLLC certificate of registration due to outstanding tax warrants and failure to demonstrate the ability to pay past and future tax obligations. Mr. Cramer failed to appear at the hearing. The DOR subsequently issued a preliminary revocation order (PRO) revoking Mr. Cramer’s certificate of registration for his PLLC based on his failure to pay taxes from 2003 to 2005. The PRO provided 21 days for Mr. Cramer to request review. Instead, on September 22, 2006, Mr. Cramer notified the DOR that his PLLC would cease doing business and terminate all further operations on September 30, 2006. He executed a notice of dissolution of the PLLC effective September 30, 2006. Two days before sending notice of his intent to dissolve the PLLC to the DOR, Mr. Cramer obtained a certificate of incorporation for a new professional services corporation, The Law Office of Stephen D. Cramer, Inc., PS (PS), from the secretary of state. He listed himself as the sole owner, shareholder, and officer of the PS. Mr. Cramer maintained the same law office space, phone number, office equipment, accounts receivable, and employee as when he operated his PLLC. He transferred his PLLC’s assets to the new PS, but not the liabilities. Mr. Cramer did not seek a certificate of registration for his PS with DOR and did not inform DOR of its existence.
On October 6, 2006, the PRO for the PLLC became final. On October 12, 2006, the final revocation order was posted on Mr. Cramer’s law office door. The provisions of the order required that it remain posted at the main entrance until the tax warrants were paid, and further advised “it shall be unlawful for any person to engage in business after the revocation of certificate of registration. Persons violating this provision shall be guilty of a Class C felony.” Mr. Cramer later removed the posting.
Mr. Cramer operated his unregistered PS from October 2006 to January 2007. The DOR discovered Mr. Cramer’s filing with the secretary of state incorporating his PS. On November 22, 2006, the DOR sent a letter to Mr. Cramer, which requested his PS registration number or submission of a completed application for certificate of registration. Mr. Cramer did not respond. When confronted by the DOR in January 2007, Mr. Cramer denied ever having received the November 2006 letter, which had been date-stamped by his office and was later submitted in correspondence to the WSBA in December 2006. Mr. Cramer also claimed he believed the Secretary of State’s Office would take care of the registration of his PS with DOR, although he had handled the registration of his PLLC with DOR. On January 8, 2007, Mr. Cramer submitted his application to DOR for the PS. The DOR subsequently determined the PS was a successor to the PLLC and transferred the tax liabilities from the PLLC to the PS. Mr. Cramer did not pay his overdue taxes until DOR began garnishing the bank accounts of his PS in 2008.
Mr. Cramer’s conduct violated RPC 8.4(b), prohibiting a lawyer from committing a criminal act that reflects adversely on the lawyer’s honesty, trustworthiness, or fitness as a lawyer; RPC 8.4(c), prohibiting a lawyer from engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation; RPC 8.4(i), prohibiting a lawyer from committing any act which reflects disregard for the rule of law whether the same be committed in the course of his or her conduct as a lawyer, or otherwise.
Joanne S. Abelson represented the Bar Association. Stephen C. Smith represented Mr. Cramer. Craig C. Beles was the hearing officer.
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