Attorney Grievance Commission v. Butler
172 A.3d 486
Md.2017Background
- Lance Butler III, a USAID employee who was also a Maryland- and D.C.-bar member, maintained a private law practice while working full-time for USAID; he was under temporary suspension from the Maryland Bar for unpaid assessments when disciplined here.
- An anonymous complaint to the USAID Inspector General alleged Butler falsified time sheets, worked on private clients on government time, misrepresented employment to obtain student loan deferment, and failed to file/pay taxes; the Inspector General referred its investigation to Bar Counsel.
- Inspector General and Bar Counsel investigations uncovered: falsified OGE financial disclosure and national security questionnaire entries, false student‑loan deferment statements, repeated failure to file/pay federal and state tax returns and misstatements on returns, and falsified USAID time sheets (≈200 hours; ~$9,500 loss); Butler admitted falsifying tax returns and making other untruthful statements in a later interview.
- Butler gave false testimony in prior disciplinary proceedings (claiming he had reported the AGC investigation to the Inspector General) and made material misrepresentations to the Inspector General during its investigation; he also failed timely to respond to Bar Counsel and defaulted in the present proceeding.
- The hearing judge, after an order of default and Butler’s absence at the disciplinary hearing, deemed factual admissions established, found clear and convincing evidence of violations of MLRPC 3.3 and 8.4(a),(b),(c),(d), and recommended discipline; the Court of Appeals disbarred Butler by per curiam order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Butler violated Rule 3.3 (candor to tribunal) | Butler knowingly gave false testimony in his prior disciplinary deposition and hearing | (No exceptions filed; Butler did not contest) | Court held Butler violated Rule 3.3 for intentionally false testimony |
| Whether Butler violated Rule 8.4(b),(c),(d) (criminal acts; dishonesty; prejudicial conduct) | Butler committed federal and state crimes (false statements, failure to file/pay taxes, false loan application), and engaged in extensive dishonesty and deceit | (No contest; factual admissions established) | Court held Butler violated 8.4(b),(c),(d) based on false disclosures, falsified time sheets, false testimony, and tax violations |
| Appropriate sanction for multiple, intentional dishonest acts including false testimony | AGC: disbarment given prolonged, intentional dishonesty and criminal conduct undermining public confidence | Butler offered no written mitigation or exceptions; defaulted | Court held disbarment appropriate to protect public and maintain confidence in the profession |
| Effect of procedural default / failure to respond | AGC treated admitted facts as conclusively established and relied on hearing judge findings | Butler did not move to vacate default or file exceptions | Court accepted hearing judge findings (not clearly erroneous) and proceeded to sanction; default permitted treating facts as established |
Key Cases Cited
- Attorney Grievance Comm’n v. Bellamy, 453 Md. 377 (general rule on treating admissions and defaults in disciplinary proceedings)
- Attorney Grievance Comm’n v. Joseph, 422 Md. 670 (importance of attorney candor to tribunals)
- Attorney Grievance Comm’n v. White, 354 Md. 346 (false or misleading testimony violates Rule 3.3)
- Attorney Grievance Comm’n v. Zodrow, 419 Md. 286 (disbarment for false testimony and related misconduct)
- Attorney Grievance Comm’n v. Katz, 443 Md. 389 (disbarment for prolonged, intentional failure to file federal tax returns)