In re Cheatham
304 Ga. 645
| Ga. | 2018Background
- Anthony E. Cheatham (admitted 1991) was the subject of a State Bar formal complaint alleging conversion of real estate closing funds and related misconduct arising from a July 2017 closing.
- Cheatham was administratively suspended from practicing law May–August 2017 for failure to complete CLE when he agreed to represent purchasers and received closing funds.
- Purchasers wired $140,600 (plus $1,000 earnest money) into Cheatham's IOLTA; he commingled and converted those funds to personal use and made incomplete, incremental disbursements to the seller.
- Cheatham failed to timely prepare/record the warranty deed, failed to account for the proceeds when asked, stopped payment on a disbursement knowing insufficient IOLTA funds, and abandoned completion of the sale.
- He was personally served with the formal complaint, failed to answer, and was found in default; the special master concluded he violated multiple Georgia Rules of Professional Conduct and recommended disbarment.
- The Court adopted the recommendation and ordered Cheatham disbarred, citing aggravating factors (dishonest motive, obstruction of the disciplinary process, victim vulnerability, substantial experience) and precedent disbarring attorneys for comparable misconduct.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether disbarment is the appropriate sanction for converting closing funds while suspended | State Bar: conversion, commingling, abandonment, and other violations warrant disbarment | Cheatham: no response (default) — no mitigating contest presented | Court: Disbarment ordered as consistent with ABA standards and precedent |
| Whether default findings establish rule violations | State Bar: service and Cheatham's failure to answer permit default findings of alleged misconduct | Cheatham: no answer or defense submitted | Court: Accepted special master's default-based findings and rule violations |
| Whether aggravating factors justify the maximum sanction | State Bar: dishonest/selfish motive, obstruction, victim vulnerability, experienced attorney justify disbarment | Cheatham: no rebuttal evidence | Court: Aggravating factors found and support disbarment |
| Applicability of Bar Rule amendments to proceeding | State Bar: proceeding commenced before rule amendments; former rules govern | Cheatham: not argued | Court: Noted rule-amendment timeline; former rules apply to this pre-July 1, 2018 proceeding |
Key Cases Cited
- In the Matter of Morse, 266 Ga. 652 (1996) (ABA Standards for Imposing Lawyer Sanctions referenced)
- In the Matter of Snipes, 303 Ga. 800 (2018) (disbarment for settling without client knowledge and converting funds)
- In the Matter of Mathis, 297 Ga. 867 (2015) (disbarment for misappropriation of real-estate closing funds)
- In the Matter of Myers, 297 Ga. 783 (2015) (disbarment for abandonment, fee misconduct, and failure to respond to disciplinary authorities)
- In the Matter of Gist, 297 Ga. 142 (2015) (disbarment for trustee/accounting failures and large-scale misappropriation)
- In the Matter of Jones, 296 Ga. 151 (2014) (disbarment for absconding with client funds and failing to respond to disciplinary authorities)