Attorney Grievance Commission v. Hoang
72 A.3d 548
Md.2013Background
- Hoang, Maryland-licensed attorney since 1986, was a partner in Tax-Smart Technology Services (Tax-Smart) in Virginia.
- Tax-Smart and Hoang devised a website sale scheme to generate fraudulent tax deductions for clients.
- Customers paid down, with balance via promissory notes; Tax-Smart licensed source code for nine years and paid annual licensing fees.
- Clients claimed inflated deductions; Hoang prepared 500+ fraudulent tax returns from 2003–2006 and took a share of refunds.
- Hoang back-dated contracts to claim earlier depreciation; multiple customers used same source code for fraud.
- IRS investigated in 2005; Hoang failed to respond to audits and later consented to a federal injunction; Hoang did not file federal tax returns from 2000 through 2008.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Hoang violated MLRPC 8.4(b). | Bar Counsel: Hoang’s fraudulent tax scheme reflects dishonesty and unfitness. | Hoang: arguments insufficient to prove 8.4(b) violations; conduct unrelated to practice. | Yes; violations established. |
| Whether Hoang violated MLRPC 8.4(c). | Bar Counsel: fraud/deceit in preparing fraudulent returns violates 8.4(c). | Hoang: insufficient proof of deceit under 8.4(c). | Yes; violations established. |
| Whether Hoang violated MLRPC 8.4(d). | Bar Counsel: failure to file personal tax returns prejudices justice. | Hoang: argues no 8.4(d) violation beyond other counts. | Yes; violations established. |
| Appropriate sanction for Hoang’s misconduct. | Bar Counsel: disbarment is warranted given severity and lack of mitigation. | Hoang: (no substantive mitigation presented) no counter-argument documented. | Disbarment ordered; costs awarded. |
Key Cases Cited
- Attorney Grievance Comm’n v. Jacob, 303 Md. 172 (1985) (fraudulent tax return constitutes moral turpitude)
- Attorney Grievance Comm’n v. Tayback, 378 Md. 578 (2003) (willful failure to file returns violates 8.4(b)-(d))
- Att’y Griev. Comm’n v. Seltzer, 424 Md. 94 (2011) (dishonesty in professional conduct broadly prohibited)
- Att’y Griev. Comm’n v. Rand, 411 Md. 83 (2009) (failure to file tax returns prejudices administration of justice)
- Att’y Griev. Comm’n v. Atkinson, 357 Md. 646 (2000) (repeated failure to file income tax returns is dishonest)
- Att’y Griev. Comm’n v. Casalino, 335 Md. 446 (1994) (knowing falsification of tax returns warrants discipline)
- Attorney Grievance Comm’n v. Agnew, 271 Md. 543 (1974) (misconduct reflecting dishonesty undermines fitness to practice)
- Att’y Griev. Comm’n v. Swerdloff, 279 Md. 296 (1977) (fraudulent tax-related conduct by a lawyer shows deceit)
- Att’y Griev. Comm’n v. Deutsch, 294 Md. 353 (1982) (conduct involving deceit in tax matters violates 8.4(c))
- Vanderlinde, 364 Md. 376 (2001) (intentional dishonest conduct by a lawyer is sanctionable)