In re Daniel
135 A.3d 796
| D.C. | 2016Background
- In 2011 this court found Daniel commingled client and personal funds in violation of DR 1.15(a), made false statements to an IRS agent in violation of DR 8.4(c), and concealed taxable income in two IOLTA/client trust accounts, resulting in a three-year suspension with reinstatement conditioned on fitness.
- The court noted that Daniel’s status with the IRS would be a relevant consideration in any reinstatement petition.
- Daniel petitioned for reinstatement and the Ad Hoc Hearing Committee recommended denial.
- The court agreed with the Committee that Daniel failed to prove by clear and convincing evidence that reinstatement is appropriate.
- Specifically, Daniel did not fully document tax deficiencies or substantiate that he had satisfied his tax obligations, and his assertions of being “all square” with the IRS were inadequate.
- Post-hearing documents were not reliable indicators of full disclosure to the IRS, and letters to the IRS in 2013 were not a serious, current effort to resolve tax issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Daniel proved reinstatement is appropriate | Daniel seeks readmission. | Daniel failed to prove the required criteria. | Denial of reinstatement. |
| Whether Daniel demonstrated full tax disclosure to the IRS | He had addressed tax deficiencies. | He had not provided adequate proof of disclosure. | Failure to document or prove disclosure supports denial. |
| Whether post-hearing documents suffice to show tax compliance | Letters and notices support compliance. | Documents were vague and untimely. | Documents insufficient to establish compliance. |
| What documentation is required for future reinstatement petitions | No more proof needed. | Additional IRS documentation required. | Future petition must include IRS communications and deficiency details. |
Key Cases Cited
- In re Daniel, 11 A.3d 291 (D.C.2011) (suspension and reinstatement context for misconduct involving trust accounts and IRS issues)
- In re Roundtree, 503 A.2d 1215 (D.C.1985) (framework for evaluating reinstatement petitions (Roundtree factors))
- In re Robinson, 705 A.2d 687 (D.C.1998) (emphasis on issues closest to the original discipline in reinstatement)
- In re Courtois, 931 A.2d 1015 (D.C.2007) (approval of reinstatement with conditions when IRS resolution is involved)