| Description: |
G. Patrick Healy (WSBA No. 4835, admitted 1972), of Tacoma, was suspended for one year, following a stipulation to discipline, by order of the Supreme Court, effective January 22, 2003. This discipline is based on his conduct in several investment partnerships and corporations in the late 1980s and early 1990s.
In the early 1980s, Mr. Healy and Richard Butko began investing in real estate development ventures. By the late 1980s, they began forming partnerships and corporations to manage these real estate ventures. Mr. Butko’s mother, Ann, and Mr. Healy’s brother Michael were involved in some of these corporations and partnerships. In early 1992, Mr. Healy and Mr. Butko encountered financial difficulties and loan default proceedings were begun. Mr. Healy asked Mr. Butko to make capital contributions to the entities with property in default. When Mr. Butko made no capital contributions, Mr. Healy, claiming to protect the corporate and partnership assets, extinguished the Butkos’ interests. Mr. Healy took many actions to accomplish this goal over the next two years. In several cases, Mr. Healy prepared resolutions purporting to transfer property, dissolve corporations or forfeit the Butkos’ interest in property. These resolutions stated that they had been unanimously approved by the shareholders. In fact, Mr. Butko and sometimes Ms. Butko voted against these resolutions. In other cases, Mr. Healy prepared partnership resolutions, even though he did not have a majority interest.
In 1993, Richard and Anne Butko sued Mr. Healy under separate cause numbers. Anne Butko’s claim was resolved in arbitration with a judgment in her favor for $103,000. The Court granted Mr. Butko an award of 2.4 million dollars. These lawsuits restored the Butkos’ interests in seven of the nine partnerships and corporations.
Mr. Healy’s conduct violated RPC 8.4(c), prohibiting conduct involving dishonesty, fraud, deceit or misrepresentation.
Linda Eide represented the Bar Association. Mr. Healy represented himself.
|