2014 Ohio 1127
Ohio2014Background
- Robert C. Schuler, admitted 1991, pled guilty in March 2011 to one felony count of filing a false tax return for tax year 2002 (under 26 U.S.C. § 7206(1)); two other federal counts were dismissed.
- His 2002 return omitted $360,000 in business income; he reported $1,162,087 but admitted the missing income.
- Sentenced September 20, 2011 to one year probation in home confinement and a $50,000 fine; interim felony suspension of his Ohio law license was imposed October 6, 2011.
- Disciplinary counsel charged violations of DR 1-102(A)(4) and (A)(6) (dishonesty and conduct reflecting adversely on fitness to practice).
- Parties initially proposed an 18‑month suspension; after remand they stipulated to facts and recommended a two‑year suspension. A board panel adopted the stipulations but recommended an indefinite suspension with credit for time served; the Supreme Court accepted misconduct findings and adopted the board’s recommendation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Schuler’s felony tax conviction constitutes professional misconduct violating DR 1‑102(A)(4) and (A)(6) | Schuler’s conviction and admitted false return show dishonesty and conduct adverse to fitness to practice | Schuler acknowledged signing the false return, characterized omission as inadvertent bookkeeping/accounting error and emphasized restitution and cooperation | Court found violations of DR 1‑102(A)(4) and (A)(6) based on the guilty plea and record of false return |
| Appropriate disciplinary sanction | Relator recommended suspension (parties previously suggested 18 months; later two years) given dishonest motive | Schuler sought a finite suspension with credit for interim suspension, noting mitigation (no prior discipline, cooperation, payment toward taxes/fine) | Court imposed an indefinite suspension, but credited time served under the interim felony suspension |
| Whether credit for interim felony suspension time is appropriate | Relator did not oppose credit; board and majority supported credit | Two justices would concur in sanction but deny credit for interim time | Majority granted credit for time served under interim suspension; two justices concurred in sanction but dissented on credit |
| Precedent governing sanction severity | Cited cases imposing indefinite suspension for comparable felony financial misconduct | Schuler argued mitigating circumstances and restitution reduce need for indefinite sanction | Court followed precedent and ruled indefinite suspension appropriate given similar cases and aggravating factors |
Key Cases Cited
- Disciplinary Counsel v. Bennett, 124 Ohio St.3d 314 (indefinite suspension for illegal structuring to evade currency‑reporting)
- Disciplinary Counsel v. Smith, 128 Ohio St.3d 390 (indefinite suspension for false tax returns and related obstruction/conspiracy)
- Columbus Bar Assn. v. Hunter, 130 Ohio St.3d 355 (indefinite suspension for failing to report large cash payment plus client‑related misconduct)