| Description: |
William F. Dippolito (WSBA No. 12533, admitted 1956), of Tacoma, resigned in lieu of disbarment, effective December 30, 2010. While not admitting the misconduct alleged, Mr. Dippolito affirmatively admitted that the WSBA could prove by a clear preponderance of the evidence the alleged violations of the Rules of Professional Conduct, and that proof of such violations would suffice to result in disbarment. This resignation is based on conduct involving theft of investors' funds. According to the Statement of Misconduct:
Mr. Dippolito acted as attorney for individuals and corporations engaging in schemes promoting high yield investment programs designed to defraud investors. Mr. Dippolito acted as the escrow agent for the receipt of investor funds. He used the title "paymaster" and assured investors that he would hold, in trust, investment funds wired to his paymaster account and that he would safeguard their funds until a banking instrument was delivered to him permitting their release.
The principals of Corporation A, for which Mr. Dippolito acted as attorney and "paymaster" in July 2008, falsely alleged to investors that their funds would be used to purchase United States Treasury notes as collateral for a transaction with another corporation. In fact, the principals intended to abscond with investor funds. On July 16, 2008, Mr. Dippolito wrote and signed a trust agreement with Investor A stating that Investor A would deposit $141,000 via wire transfer into Mr. Dippolito's trust account to enable Corporation A to purchase the notes. The agreement conditioned that Mr. Dippolito would not release Investor A's money until the receipt and authentication by Mr. Dippolito of a bank guarantee instrument known as an MT760.
On July 17, 2008, Investor A wired $141,000 to Mr. Dippolito's paymaster trust account. The same day, Mr. Dippolito released investor A's money to Corporation A's principals without the issuance or authentication of an MT760 form. Before releasing the money, Mr. Dippolito removed $1,500 from the $141,000 as his payment. Investor A demanded that Mr. Dippolito return the funds. Mr. Dippolito assured investor A that his funds would be returned, but failed to do so. Following a November 2008 civil suit filed by Investor A, Mr. Dippolito stipulated to an entry of judgment against him for damages in the amount of $160,000, but subsequently failed to pay the judgment.
The principals of Corporation B, for which Mr. Dippolito acted as attorney and "paymaster" in June and July 2008, falsely alleged to investors that their funds would be used to purchase a 500 million euro high-yield medium-term note to support a non-existent trading program. In fact, the principals intended to abscond with investor funds. In late June or early July 2008, Mr. Dippolito wrote and signed a trust agreement with Investor B stating that Investor B would deposit $2,500,000 via wire transfer into Mr. Dippolito's trust account to enable Corporation B to purchase the note. The agreement conditioned that Mr. Dippolito would not release the money until the receipt and authentication by Mr. Dippolito of an MT760. In June or July 2008, Investor B wired $2,500,000 to Mr. Dippolito's trust account. Shortly thereafter, Mr. Dippolito released the money to Corporation B's principals without the issuance or authentication of an MT760 form. Before releasing the money, Mr. Dippolito removed approximately $17,000 from the $2,500,000 as his payment. Investor B demanded that Mr. Dippolito return the money. Although Mr. Dippolito assured Investor B that his money would be returned, he failed to do so. On April 22, 2009, the Securities and Exchange Commission (SEC) filed a civil fraud action in Los Angeles, California against Mr. Dippolito, charging him with aiding and abetting Corporation B and its principals in perpetrating fraud against investors in violation of the Securities Exchange Act.
Previously, in July 2007, the SEC charged Mr. Dippolito with engaging in fraudulent conduct in a scheme similar to those perpetrated against Investors A and B. As a result, to resolve the suit, Mr. Dippolito consented to being permanently enjoined by the SEC from aiding and abetting violations of the Exchange Act, and to disgorging that portion of investor money he retained as his share of the fraudulent scheme.
Mr. Dippolito's conduct violated RPC 8.4(b), prohibiting a lawyer from committing a criminal act (here, first-degree theft) that reflects adversely on the lawyer's honesty, trustworthiness, or fitness as a lawyer in other respects; and RPC 8.4(c), prohibiting a lawyer from engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation.
Kathleen A.T. Dassel represented the Bar Association. Mr. Dippolito represented himself.
|