Matter of Petiton
155 A.D.3d 118
| N.Y. App. Div. | 2017Background
- John E. Petiton, admitted to NY Bar in 1985, pleaded guilty in federal court on October 23, 2015 to one count of conspiracy to commit bank fraud (18 U.S.C. §§ 1349, 1344).
- Federal sentence imposed December 2, 2016: 63 months imprisonment, three years supervised release, and $2,500,000 restitution.
- Grievance Committee for the Tenth Judicial District moved to strike Petiton’s name from the roll of attorneys under Judiciary Law § 90(4) based on the federal felony conviction.
- Petiton was served with the motion but filed no opposition or request for additional time.
- The plea allocution admitted participation in a multi-year scheme (2003–2008) to obtain over $30 million from lenders through materially false mortgage applications and concealment of collateral information.
- The Appellate Division found the federal conspiracy conviction met the Judiciary Law definition of a felony and ordered automatic disbarment effective October 23, 2015.
Issues
| Issue | Grievance Committee's Argument | Petiton's Argument | Held |
|---|---|---|---|
| Does the federal conviction qualify as a "felony" under Judiciary Law § 90(4)(e)? | The federal conspiracy to commit bank fraud is a felony and thus triggers automatic disbarment. | (No opposition filed.) | Yes. The conviction is a felony under § 90(4)(e). |
| Is the federal offense essentially similar to a NY felony (to support disbarment)? | The federal bank fraud conspiracy is essentially similar to NY’s scheme to defraud in the first degree (Penal Law § 190.65). | (No opposition filed.) | Yes. The plea allocution shows essential similarity to NY scheme to defraud in the first degree. |
Key Cases Cited
- Matter of Margiotta, 60 N.Y.2d 147 (court may require "essential similarity" between out-of-jurisdiction felony and NY felony)
- Matter of Woghin, 64 A.D.3d 5 (plea allocution may be considered when comparing federal offense to NY felony)
- Matter of Duval, 148 A.D.3d 73 (construing bank fraud-type convictions as essentially similar to NY scheme to defraud)
(Disposition: Motion to strike name from roll granted; Petiton disbarred effective October 23, 2015; ordered to comply with rules governing disbarred attorneys and desist from practicing law.)