STATE ex rel. OKLAHOMA BAR ASSOCIATION v. FRIESEN, 350 P.3d 1269

Background

Larry D. Friesen, an Oklahoma attorney, pled guilty in federal court to three misdemeanor counts for willfully failing to pay employment (income and FICA) taxes for quarterly periods in 2007; he admitted withholding taxes from employees but not remitting them.
Federal sentence (Sept. 25, 2014): 36 months probation, 45 days weekend incarceration, 180 days house arrest (with GPS), and $209,673 restitution (total agreed restitution $320,000 with credit for $110,327 already paid).
Oklahoma Bar imposed immediate interim suspension (Oct. 18, 2014); Respondent requested a hearing and presented mitigating evidence (embezzlement by long-time CPA, costly federal gun defense, remedial office-management steps, full cooperation, community support).
PRT recommended lifting interim suspension and imposing a deferred suspension of two years and one day, conditioned on compliance with federal probation; the Bar asked for suspension at least through house arrest.
The Oklahoma Supreme Court reviewed de novo and concluded that repeated willful nonpayment of employment taxes (including withholding from employees) reflects adversely on fitness to practice, but given mitigation, remediation, restitution payments, lack of client harm, and cooperation, it deferred final discipline while Respondent remains on federal probation.
Court ordered suspension effective from the interim suspension date until this pronouncement becomes effective (allowing resumption of practice once costs paid), reserved right to impose full discipline if federal probation terms are violated, and required notice to Bar of any federal probation revocation motion.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Friesen's convictions and tax misconduct render him unfit to practice law	Repeated willful failure to pay employment taxes (withholding from employees) shows indifference to legal obligations and undermines public confidence; unfitness is appropriate.	Friesen argued this was failure to pay (not failure to file), was mitigated by embezzlement by his CPA, extraordinary legal-defense expenses, remediation of office practices, restitution paid, no client harm, and long record of service.	Court: Tax offenses reflect adversely on fitness, especially repeated nonpayment after withholding; but mitigation and restitution support deferral of final discipline while probation continues.
Appropriate discipline for federal tax misdemeanors by an attorney	Bar recommended continued suspension at least through house arrest and then a deferred suspension for remainder of probation.	Friesen sought leniency: lift interim suspension and impose deferred discipline conditioned on probation compliance.	Court: Deferred imposition of final discipline (suspension withheld) so long as Respondent complies with federal probation; interim suspension period counted and costs must be paid before resuming practice.
Relevance of prior misconduct or other offenses to discipline	Prior disciplinary matters and other conduct could justify harsher discipline.	Friesen noted prior private reprimand (2009) was for minor record-keeping error and should not increase discipline.	Court: Declined to enhance discipline for the 2009 private reprimand; focused on current tax misconduct and mitigation.
Need for monitoring and contingency if probation violated	Bar sought immediate imposition of suspension if probation is revoked or accelerated.	Friesen accepted notification requirements and condition.	Court: Reserved right to impose full discipline upon federal probation violation; required respondent to notify Bar of any federal motion to revoke/accelerate probation and Bar to notify court upon learning of such filing.

Key Cases Cited

State ex rel. Oklahoma Bar Ass'n v. Hart, 339 P.3d 895 (Okla. 2014) (criminal conviction does not automatically require finding of unfitness; relevant precedent on discipline).
State ex rel. Oklahoma Bar Ass'n v. Livshee, 870 P.2d 770 (Okla. 1994) (willful failure to file tax return reflects adversely on fitness; disciplinary deferral/interim suspension discussion).
State ex rel. Oklahoma Bar Ass'n v. Spradling, 213 P.3d 570 (Okla. 2009) (failure to comply with federal tax law undermines public confidence and lawyer’s duty to uphold the law).
State ex rel. Oklahoma Bar Ass'n v. Givens, 343 P.3d 214 (Okla. 2014) (use of precedent comparing discipline for similar misconduct).
State ex rel. Oklahoma Bar Ass'n v. Edwards, 248 P.3d 850 (Okla. 2011) (discipline comparisons and considerations).
State ex rel. Oklahoma Bar Ass'n v. Bernhardt, 323 P.3d 222 (Okla. 2014) (deferred suspension comparable in prior serious criminal context).
State ex rel. Oklahoma Bar Ass'n v. Cooley, 304 P.3d 453 (Okla. 2013) (disciplinary jurisdiction and standards).
State ex rel. Oklahoma Bar Ass'n v. Wilburn, 142 P.3d 420 (Okla. 2006) (disciplinary standards and authority).
State ex rel. Oklahoma Bar Ass'n v. Wolfe, 919 P.2d 427 (Okla. 1996) (suspension for combined tax violations and multiple professional violations).
State ex rel. Oklahoma Bar Ass'n v. Stewart, 71 P.3d 1 (Okla. 2003) (severe suspension for multiple federal-law violations including tax-related issues).
State ex rel. Oklahoma Bar Ass'n v. Gann, 895 P.2d 726 (Okla. 1995) (examples of public censure for misconduct).