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ATTORNEY disciplinary
proceeding. Attorney's license
suspended.
¶1 PER CURIAM. Attorney Gary R.
George appeals a referee's recommendation
that his license to practice law in
Wisconsin be revoked for professional
misconduct consisting of committing criminal
acts that reflect adversely on his honesty,
trustworthiness and fitness as a lawyer.
The referee also recommends that Attorney
George pay the costs of the disciplinary
proceeding. The sole issue on appeal is the
appropriate level of discipline.
¶2 We approve the referee's findings of
fact and conclusions of law and we adopt
them. We conclude that a lengthy suspension
is the appropriate level of discipline in
this proceeding, and we impose the costs of
the proceeding.
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¶3 Attorney George was admitted to the
practice of law in Wisconsin in 1979. He
has no prior disciplinary history. On April
1, 2004, this court summarily suspended
Attorney George's license to practice law in
Wisconsin pursuant to SCR 22.20(1) upon
notification that Attorney George had been
convicted in federal court, on entry of a
guilty plea, of one count of conspiracy to
commit offenses against federal program
funds in violation of 18 U.S.C. § 371.
¶4 His license to practice law remains
under suspension.
¶5 Attorney George served in the
Wisconsin Senate for 23 years. During that
time, he developed a professional
relationship with Milwaukee attorney Mark
Sostarich (Sostarich), and Carl Gee (Gee),
the former executive director of the
Opportunities Industrialization Center of
Greater Milwaukee ("OIC"), an entity that
held contracts to administer Wisconsin's
welfare-reform program, popularly known as W-
2 (for "Wisconsin Works").
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¶6 Attorney George, Sostarich, Gee and
others entered into business arrangements
that eventually gave rise to federal
conspiracy charges. In 2003 Attorney George
was indicted on charges that he accepted
kickbacks in exchange for exercising his
political influence over federal grants as
well as programs financed by state
revenues. See United States v.
George, 403 F.3d 470 (7th Cir. 2005).
Attorney George pled guilty to the first
count of the indictment pursuant to a plea
agreement. The remaining charges were
dismissed but read into the record.
Attorney George was sentenced to 48 months'
imprisonment and was ordered to pay
$568,596.48 in restitution.
¶7 We summarize the facts underlying
the charge to which Attorney George pled
guilty. Attorney George and Sostarich
undertook joint legal representation of the
OIC and various OIC subsidiaries with the
OIC's knowledge and consent. The parties
entered into a written fee agreement,
whereby Sostarich served as the attorney of
record.
¶8 Between approximately October 1997
and August 2002, the OIC paid a monthly
retainer to Sostarich, usually in the amount
of $5,834. Sostarich, in turn, would
deposit the retainer check into his bank
account and then write two checks——one to
his law firm and one to Attorney George.
The amount Attorney George received varied
from four-fifths of the total monthly
retainer ($4,667.20) to one-half of
additional legal payments the OIC made to
Sostarich. Attorney George performed no
legal work in exchange for this money;
neither the OIC nor Sostarich filed tax
documents showing how the monthly fee was
allocated.
¶9 The OIC also "invested" $200,000 of
an affiliate's money in a corporation
controlled by Attorney George's family,
whose sole asset was a television station in
the Virgin Islands. The "investment" never
appeared on the corporation's books. The
federal court observed that "[t]he money
seems to have gone straight to George's
pocket, with the OIC receiving his goodwill
and political patronage rather than an
equity interest in a business." United
States v. Gee, 432 F.3d 713, 714 (7th Cir.
2005). Attorney George eventually received
over $400,000 in various payments from the
OIC. In addition, the indictment alleged
and Attorney George has admitted that he
used state employees to perform personal
work for him, and that he failed to disclose
the fees received from the OIC arrangement
on his Statement of Economic Interests.
¶10 On August 2, 2005, the Office of
Lawyer Regulation (OLR) filed a disciplinary
complaint against Attorney George alleging
that by virtue of his conviction in federal
court he had violated SCR 20:8.4(b), which
provides that it is professional misconduct
to "commit a criminal act that reflects
adversely on the lawyer's honesty,
trustworthiness or fitness as a lawyer in
other respects."
¶11 A hearing on the attorney
disciplinary matter was conducted on April
20, 2006. On December 12, 2006, the
referee, Gene B. Radcliffe, filed his report
recommending revocation. This appeal
followed. The Wisconsin Supreme Court
conducted oral argument on December 13, 2007.
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¶12 Attorney George does not challenge
the referee's finding that his federal
conviction established a violation of SCR
20:8.4(b). Therefore, the sole question
before the court on appeal is the
appropriate discipline for Attorney George's
professional misconduct. The OLR
acknowledged at oral argument that any
discipline should be imposed retroactive to
the date Attorney George's license to
practice law was summarily suspended.
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¶13 It is this court's responsibility to
determine the appropriate discipline to be
imposed for an attorney's misconduct. In
making that determination, we are free to
impose discipline more or less severe than
that recommended by the referee. In re
Disciplinary Proceedings Against Elliott,
133 Wis. 2d 110, 394 N.W.2d 313 (1986); In
re Disciplinary Proceedings Against Reitz,
2005 WI 39, 279 Wis. 2d 550, 694 N.W.2d 894.
¶14 We consider the seriousness of the
misconduct, the need to protect the public,
courts and the legal system from repetition
of misconduct, the need to impress upon the
attorney the seriousness of the misconduct,
and the need to deter other attorneys from
engaging in similar misconduct. See
In re
Disciplinary Proceedings Against Arthur,
2005 WI 40, 279 Wis. 2d 583, 694 N.W.2d 910.
¶15 Attorney George acknowledges the
seriousness of his misconduct, but asserts
that a lesser sanction than revocation is
warranted. The crux of Attorney George's
argument is that the federal court decisions
overstate the nature of the conspiracy and,
while he concedes it was wrong to use state
employees for personal work and wrong to
fail to disclose the payments he received on
his Statement of Economic Interests, the
payments he received from the OIC were
fairly obtained. He maintains that he did
not exert his influence improperly on behalf
of the OIC. He maintains that the payments
he received were for legitimate services
rendered to the OIC. Despite Attorney
George's protestations to the contrary, this
characterization of the events was clearly
not accepted by the referee who stated, "In
spite of his arguments that he was convicted
because of technicalities and the general
coercive nature of the criminal . . .
system and that he really did provide legal
services to the entities for which he
received kickbacks, the record clearly
indicates otherwise." (Emphasis added).
¶16 We decline to disturb the referee's
factual finding on this point and note that
it is fully consistent with Attorney
George's statements made at his plea
hearing, where the federal court described
the allegations contained in count one of
the indictment and asked, "Are those the
facts to which you are pleading guilty here
today as they——as those facts relate to
you?" Attorney George responded, "Yes, your
Honor."
¶17 Similarly, we are not persuaded by
Attorney George's suggestion that his
discipline should not be significantly more
severe than that imposed on Sostarich.
There is substantial record evidence that
both Sostarich and Gee benefited far less
than Attorney George from the scheme.
Attorney George's effort to characterize his
culpability as on par with that of Sostarich
is simply not compelling.
¶18 Attorney George also suggests that
the referee erroneously assumed that
revocation is automatically warranted when
an attorney has committed any serious
felony. However, it does not appear the
referee erroneously assumed that commission
of a serious felony automatically requires
revocation. In his report, the referee
referenced section 5.11(a) of the ABA
Standards for Imposing Lawyer Sanctions
which states that disbarment is generally
appropriate when:
[A] lawyer engages in serious criminal
conduct a necessary element of which
includes intentional interference with the
administration of justice, false swearing,
misrepresentation, fraud, extortion,
misappropriation, or theft; . . . or an
attempt or conspiracy or solicitation of
another to commit any of these offenses[.]
¶19 The referee stated, "In imposing
discipline in these cases, most courts
impose disbarment on lawyers who are
convicted on serious felonies." The referee
added that Section 5.21 of the ABA Standards
for Imposing Lawyer Sanctions provides
that "disbarment is generally appropriate
when a lawyer in an official or governmental
position, such as [Attorney George],
knowingly misuses the position with intent
to obtain a significant benefit or advantage
for himself."
¶20 We are not persuaded that by these
statements, the referee erroneously assumed
revocation was the only sanction he could
recommend to this court.
¶21 However, while we decline to accept
Attorney George's characterization of the
events giving rise to his conviction,
neither are we persuaded that revocation is
a necessary sanction in this instance.
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¶22 In considering the appropriate
discipline, we consider prior Wisconsin
precedent, the ABA Standards for Imposing
Lawyer Sanctions, the mitigating and
aggravating circumstances involved in this
matter, and the specific circumstances of
Attorney George's misconduct.
¶23 Ultimately, each disciplinary case
turns on its specific facts. See,
e.g., In
re Disciplinary Proceedings Against
O'Byrne,
2002 WI 123, 257 Wis. 2d 8, 653 N.W.2d 111.
We have considered the cases cited by both
parties and commend counsel for providing
the court with a thorough analysis of
relevant case law. See, e.g., In
re
Disciplinary Proceedings Against Burke,
2007
WI 46, 300 Wis. 2d 198, 730 N.W.2d 651
(suspension); In re Disciplinary
Proceedings
Against Chvala, 2007 WI 47, 300 Wis. 2d
206,
730 N.W.2d 648 (suspension); In re
Disciplinary Proceedings Against Paulus,
2004 WI 71, 272 Wis. 2d 143, 682 N.W.2d 326
(consensual revocation); In re
Disciplinary
Proceedings Against Hausmann, 2005 WI 131,
285 Wis. 2d 608, 699 N.W.2d 923
(suspension); O'Byrne, 2002 WI 123
(revocation); In re Disciplinary
Proceedings
Against Kortsch, 225 Wis. 2d 235, 591
N.W.2d
841 (1999) (revocation); In re
Disciplinary
Proceedings Against Hinnawi, 202 Wis. 2d
113, 549 N.W.2d 245 (1996) (revocation);
In
re Disciplinary Proceedings Against
Wright,
180 Wis. 2d 492, 509 N.W.2d (1994)
(revocation); In re Disciplinary
Proceedings
Against Smith, 145 Wis. 2d 632, 428
N.W.2d
547 (1988) (revocation).
¶24 Revocation is the most extreme
sanction this court can impose upon an
attorney who has violated the Rules of
Professional Conduct for Attorneys. It is
reserved for the most egregious cases of
professional misconduct, cases where we
conclude that the nature and extent of the
misconduct renders an attorney wholly unfit
to be licensed by this court to represent
others in the legal system.
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¶25 Revoking a lawyer's license to
practice law does not, however, preclude
that person from ever practicing law in
Wisconsin again. One whose license has been
revoked may seek reinstatement "at any time
commencing five years after the effective
date of the revocation." SCR 22.29(2).
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¶26 In seeking a lesser sanction than
revocation, Attorney George offered, as a
mitigating factor, his lengthy public
service, including 23 years in the Wisconsin
Senate, and his involvement since the 1970s
in Wisconsin Special Olympics and other
charitable and professional works benefiting
underprivileged youth.
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¶27 At the oral argument on this matter,
however, counsel for the OLR persuasively
argued the other side of that same coin,
emphasizing that Attorney George was not
only acting as an attorney, but also as an
elected official when he committed the
misconduct at issue here. As such, Attorney
George's misconduct not only involved
dishonesty, it violated the public's trust
and served to undermine the public's
confidence in its elected officials.
¶28 This is a difficult case and one
this court considered very seriously. We
share the OLR's concerns about the serious
violation of public trust committed by
Attorney George, and we agree that
substantial discipline is warranted to
address that misconduct. At the same time,
we are mindful that our role is not to
duplicate the punishment Attorney George has
already received for his actions, which
includes a felony conviction, a lengthy
prison sentence, and a very substantial
restitution obligation that must be paid.
¶29 Ultimately, we have concluded that
while Attorney George's misconduct was,
indeed, extremely serious, it does not
warrant the harshest penalty of revocation.
We are influenced by the fact that this is
the only disciplinary complaint filed
against Attorney George since he was
admitted to practice law in Wisconsin some
29 years ago. We are influenced by Attorney
George's public service to the citizens of
Wisconsin. His service long preceded the
events giving rise to this disciplinary
matter. Ultimately, while we agree that
Attorney George has committed serious
misconduct, we are persuaded that his
prospects for rehabilitation are real.
¶30 Therefore, we have concluded that a
lengthy suspension is appropriate discipline
for Attorney George's violation of SCR 20:8.4
(b). Attorney George's license to practice
law will be suspended for a period of four
years and three months. This is, perhaps,
the most lengthy suspension imposed by this
court in an attorney disciplinary matter.
¶31 Consistent with our past practice in
other cases involving criminal convictions,
we make the suspension retroactive to the
date on which Attorney George's license was
summarily suspended. We further conclude
that Attorney George should be required to
pay the costs of the proceeding which total
$14,064.72 as of December 17, 2007.
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¶32 We emphasize, moreover, that a
petition for reinstatement, whether it
follows a suspension or a revocation, is not
an automatic procedure. See, e.g.,
Reinstatement of Eisenberg, 206 Wis. 2d
264, 556 N.W.2d 749 (1996). In all cases of
revocation or license suspension of six
months or more, the individual's eligibility
and fitness to practice law is carefully
scrutinized, first by the OLR, then by a
referee, and finally by this court. The
person seeking reinstatement must
demonstrate that he or she has the moral
character to practice law, that his or her
resumption of the practice of law will not
be detrimental to the administration of
justice or subversive of the public
interest, and the person seeking
reinstatement must also demonstrate
compliance with various other conditions as
set forth in the rules or by order of the
court. See, e.g., SCRs 22.29-22.33.
¶33 IT IS ORDERED that Gary R. George's
license to practice law in Wisconsin is
suspended for a period of four years and
three months, retroactive to the date of his
summary license suspension imposed April 1,
2004.
¶34 IT IS FURTHER ORDERED that, if he
has not already done so, Gary R. George
comply with the provisions of SCR 22.26
concerning the duties of a person whose
license to practice law in Wisconsin has
been suspended.
¶35 IT IS FURTHER ORDERED that within 60
days of the date of this order Gary R.
George pay to the Office of Lawyer
Regulation the costs of this proceeding,
provided that if the costs are not paid
within the time specified and absent a
showing to this court of his inability to
pay those costs within that time, the
license of Gary R. George to practice law in
Wisconsin shall remain suspended until
further order of the court.
¶36 DAVID T. PROSSER, J., and LOUIS B.
BUTLER, JR., J., did not participate.
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