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Lynn M. Abreu (WSBA No. 14241, admitted 1984), of Renton, was disbarred, effective November 20, 2007, by order of the Washington State Supreme Court following a default hearing. This discipline was based on conduct involving two counts of theft.
In January 2006, Ms. Abreu signed as escrow agent on a standby letter of credit escrow agreement for a financial transaction between a corporation located in Turkey (Corporation A) and a corporation located in Illinois (Corporation B). The purpose of the agreement was to allow Corporation B to obtain funds needed for construction of a power plant in India through lease of a standby letter of credit. Ms. Abreu's part in the transaction was simply to receive and hold the funds transmitted to her on behalf of Corporation B in her trust account and then to transmit them, less her fee, upon Corporation A's performance of its obligations under the agreement. To fulfill its obligations under the agreement, Corporation B went to outside investors and obtained $485,000, which was then wired directly to Ms. Abreu's account. The account that Ms. Abreu provided to receive the funds was not a trust account. Under the escrow agreement, Ms. Abreu was required to return the funds to the individual investors if Corporation A did not produce a required standby letter of credit within 45 international banking days of her receipt of the funds. Corporation A did not produce the letter within the required time. In November 2007, the president of Corporation B wrote Ms. Abreu demanding that the funds be wired to the individual investors no later than the third business day following his letter. Ms. Abreu failed to return the funds.
In April 2006, Ms. Abreu signed as escrow agent on a standby letter of credit escrow agreement for a financial transaction between the previously mentioned Corporation A and a biotechnology company located in Canada (Corporation C). The purpose of the agreement was to allow Corporation C to obtain funds needed for research through lease of a standby letter of credit. Ms. Abreu's part in the transaction was simply to receive and hold the funds transmitted by Corporation C in her trust account and then to transmit them, less her fee, upon Corporation A's performance of its obligations under the agreement. The agreement provided that if Corporation A did not perform its obligations under a related memorandum of understanding, the money was to be refunded less the escrow fee of $5,000. Pursuant to its obligations under the agreement, Corporation C wired $305,000 to Ms. Abreu. The account that Ms. Abreu provided to receive the funds was not a trust account. Corporation A did not perform its obligations and, in June 2006, the president of Corporation C wrote Ms. Abreu to request the immediate return of the company's money. Ms. Abreu returned $100,000 of the $305,000 in July 2006. Along with the funds, Ms. Abreu sent an e-mail stating that this amount was being sent "while the accounting is concluded" with the failed transaction. Corporation C informed Ms. Abreu, through outside counsel, of her obligation to refund the entire sum immediately upon notification that the transaction between the parties would not take place. Despite repeated requests, threats of bar complaints, and civil litigation, Ms. Abreu failed to return Corporation C's funds.
In both matters, the majority of the funds associated with the transactions were either used by Ms. Abreu and transferred to her personal account or forwarded to individuals associated with Corporation A. Neither activity was authorized in either matter by the respective escrow agreements. Ms. Abreu's actions violated various state and federal prohibitions regarding theft and fraudulent use of wire transfers (including RCW 9.56.030 and 18 U.S.C. § 1343) and deprived both Corporation B and Corporation C of needed funds.
The Washington State Bar Association received grievances from Corporation C in October 2006 and from Corporation B in December 2006. Ms. Abreu avoided service in connection with these grievances and deliberately failed to cooperate with the disciplinary process.
Ms. Abreu's conduct violated RPC 8.4(b), prohibiting a lawyer from committing a criminal act (here, theft) that reflects adversely on the lawyer's honesty, trustworthiness, or fitness as a lawyer in other respects; RPC 8.4(c), prohibiting a lawyer from engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation; and RPC 8.4(i), prohibiting a lawyer from committing any act involving moral turpitude, or corruption, or any other act which reflects disregard for the rule of the law.
Linda B. Eide represented the Bar Association. Ms. Abreu was not represented either in person or by counsel. Bertha B. Fitzer was the hearing officer. |