Attorney Grievance Commission v. Giannetti
175 A.3d 119
| Md. | 2017Background
- John A. Giannetti, Jr., a Maryland attorney (admitted 1995), failed to timely file federal and Maryland income tax returns and pay taxes from 2008 through 2015.
- He was self-employed (no withholding); in some years he filed for extensions but did not file returns by the extended dates.
- He made only one payment (applied to 2007) and did not establish a payment plan; Maryland tax lien exceeded $112,000 and federal balance was later reported at ~$41,628.
- Respondent did not respond to Bar Counsel discovery; the hearing judge deemed admissions established and barred Respondent from presenting evidence other than personal testimony (which he largely did not provide).
- The hearing judge found by clear and convincing evidence violations of MLRPC 8.4(a)–(d) (willful failure to file/pay taxes; dishonesty; conduct prejudicial to administration of justice).
- Court imposed an indefinite suspension effective 30 days after opinion, with right to seek reinstatement no sooner than one year and conditions requiring evidence of being in good standing on federal/state tax obligations.
Issues
| Issue | Plaintiff's Argument (Attorney Grievance Comm'n) | Defendant's Argument (Giannetti) | Held |
|---|---|---|---|
| Whether respondent violated MLRPC 8.4(b) (criminal act reflecting on fitness) by willfully failing to file/pay income taxes 2008–2015 | Willful failure to file/pay is a crime under federal and Maryland law and the record (admissions, extensions, nonpayments) shows willfulness | Argued distinctions (e.g., he requested extensions) to show he was not hiding from taxing authorities | Held: Violation proven; willful failure to file/pay satisfied the test for 8.4(b) |
| Whether respondent violated MLRPC 8.4(c) (dishonesty, fraud, deceit) by repeated tax noncompliance | Repeated, prolonged failure to file/pay is dishonest conduct even absent fraud or conviction | Argued mitigating facts like extensions and (implicitly) lack of fraudulent intent | Held: Violation proven; repeated multi-year failures constitute dishonest conduct under 8.4(c) |
| Whether respondent violated MLRPC 8.4(d) (conduct prejudicial to administration of justice) | Such tax misconduct undermines public confidence and ‘‘cheats and defrauds the government,’’ prejudicing administration of justice | Argued his conduct was less severe (extensions, no claim of client harm) | Held: Violation proven; willful tax noncompliance is prejudicial to administration of justice under 8.4(d) |
| Whether respondent also violated MLRPC 8.4(a) (violation of the Rules) | If (b)–(d) proven, (a) follows because (a) forbids violating the MLRPC | Denied or minimized misconduct; sought lenient sanction | Held: Violation proven (derivative of violations of 8.4(b)–(d)) |
Key Cases Cited
- Attorney Grievance Comm’n v. Atkinson, 357 Md. 646 (2000) (repeated multi-year failure to file/pay taxes found dishonest and warranted suspension)
- Attorney Grievance Comm’n v. Tayback, 378 Md. 578 (2003) (willful failure to file/pay is a crime and reflects on fitness; suspension appropriate)
- Attorney Grievance Comm’n v. Walman, 280 Md. 453 (1977) (willful failure to file/pay taxes constitutes professional misconduct even without fraud/conviction)
- Attorney Grievance Comm’n v. Katz, 443 Md. 389 (2015) (egregious long-term tax evasion can warrant disbarment; court compares degrees of misconduct when assessing sanctions)