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ATTORNEY reinstatement
proceeding. Reinstatement granted.
¶1 PER CURIAM. We review the
recommendation of the referee, James J.
Winiarski, that Attorney Gary R. George's
petition seeking the reinstatement of his
license to practice law in Wisconsin be
denied. Attorney George filed an appeal
from the referee's report and recommendation
pursuant to SCR 22.33, requesting this court
grant the petition for reinstatement. After
consideration of the parties' briefs, the
referee's report and the entire record, we
conclude that Attorney George's petition for
reinstatement should be granted. We also
direct that the costs of the reinstatement
proceeding, which total $9,702.01 as of
December 18, 2009, be paid by Attorney
George.
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¶2 Attorney George was admitted to the
State Bar of Wisconsin in 1979. He served
in the Wisconsin Senate for 23 years. On
April 1, 2004, this court summarily
suspended Attorney George's license to
practice law upon learning he had entered a
guilty plea to one count of conspiracy to
commit offenses involving federal program
funds in violation of 18 U.S.C. § 371.
See
United States v. George, 403 F.3d 470
(7th
Cir. 2005). Attorney George had not
previously been disciplined for professional
misconduct.
¶3 The order and memorandum in the
federal court case stated Attorney George
received approximately $270,000 in illegal
kickbacks from another attorney for legal
fees to that attorney as a result of
Attorney George exercising his political
influence over federal grants as well as
programs financed by state revenues. In
addition, Attorney George secured state
construction contracts for a businessman as
a reward for the businessman making cash
payments to a business owned by Attorney
George's family. Attorney George also used
State of Wisconsin employees to conduct his
personal business involving his private law
practice. Attorney George was sentenced to
48 months in prison and three years of
extended supervision. He was ordered to pay
$568,596.48 in restitution. See United
States v. George, No. 03-CR-259, Memorandum
Decision (E.D. Wis. May 3, 2006), aff'd
after remand, United States v. George, 198
Fed. Appx. 552 (7th Cir. 2006).
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¶4 On March 26, 2008, following a full
disciplinary proceeding, this court
suspended Attorney George's license to
practice law for four years and three
months, retroactive to April 1, 2004, the
date of the summary suspension. In re
Disciplinary Proceedings Against George,
2008 WI 21, 308 Wis. 2d 50, 746 N.W.2d 236.
¶5 On June 23, 2008, Attorney George
filed a petition seeking reinstatement of
his license to practice law. A public
hearing on the reinstatement petition was
held on December 8, 2008. Seven character
witnesses testified in support of Attorney
George's petition and Attorney George
testified as well. The parties filed post-
hearing memoranda. On February 2, 2009, the
referee filed a report recommending denial
of the petition. Attorney George filed a
timely appeal from the referee's report and
recommendation. The Office of Lawyer
Regulation (OLR) opposes reinstatement. The
matter is now before the court pursuant to
SCR 22.33(2).
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¶6 Supreme court rule 22.31(1) provides
the standards to be met for reinstatement.
Specifically, the petitioner must show by
clear, satisfactory, and convincing evidence
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 that
he or she has complied with SCR 22.26 and
the terms of the order of suspension. In
addition to these requirements, SCRs 22.29(4)
(a) to (4m) provide additional requirements
that a petition for reinstatement must
show. All of these additional requirements
are effectively incorporated into SCR 22.31
(1).
¶7 When we review a referee's report
and recommendation, we will adopt a
referee's findings of fact unless they are
clearly erroneous. Conclusions of law are
reviewed de novo. See In re
Disciplinary
Proceedings Against Eisenberg, 2004 WI 14,
¶5, 269 Wis. 2d 43, 675 N.W.2d 747.
¶8 The referee made the following
factual findings relevant to Attorney
George's petition for reinstatement:
[1] [Attorney George] does desire the
return of his law license.
[2] During the course of his suspension,
[Attorney] George acted as a
paid "consultant" for two business
entities. His consulting activities
included law related work and the giving of
legal advice.
[3] [Attorney George] remains on federal
supervised release following his prison
term. His supervised release is currently
scheduled to end in August, 2010. The terms
of his supervised release include that he is
not allowed to hold employment having
fiduciary responsibilities without the
consent of his probation officer. He is
allowed to only maintain one checking
account into which all income must be
deposited and expenses paid. All other
accounts must be disclosed to his probation
officer. He is not allowed to dispose of
any assets exceeding a fair market value of
$500.00 without the approval of his
probation officer. Subject to the
discretion of his probation officer,
[Attorney] George may be required to notify
third parties of risks that may be
occasioned by [Attorney] George's criminal
record or personal history.
[4] [Attorney George] recently filed a
motion in Federal Court asking that his
supervised release be terminated or
modified. The motion was denied. [Attorney
George] intends to continue efforts to
modify or end his supervised release.
[5] [Attorney George] believes his
prosecution in Federal Court was politically
motivated. He does not believe he did
anything wrong. He pled guilty only to
avoid the risk of greater penalties. He
believes that the "truth" will ultimately
come out and show he did nothing wrong.
[6] During the last year, while
[Attorney
George's] income has fluctuated, it appears
that he has averaged approximately $8,000
per month in gross income.
[7] [Attorney George] has paid very
little
of the $568,596.48 in restitution ordered by
the Federal Court. [Attorney George]
continues to dispute the restitution and the
precise remaining balance of restitution
due.
[8] [Attorney George] has paid very
little
of the court ordered costs of his Wisconsin
suspension proceeding, which amounted to
$14,064.71. However, communications have
occurred between OLR and [Attorney George],
and [Attorney George] believes he has an
agreement with OLR to pay $150 per month for
now, but more in the future. OLR believes
he can and should pay more.
[9] As a result of being imprisoned and
having his law license suspended, [Attorney
George] has been unable to pay all past
debts, family obligations, current living
expenses, Federal restitution, and the cost
of his suspension proceeding. However, he
should be paying more on a monthly basis
towards costs and restitution.
[10] [Attorney George] has attended
necessary courses and appears compliant with
CLE requirements. However he must obtain
and submit proof.
We adopt these findings of fact.
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¶9 The referee concluded Attorney
George had failed to meet his burden of
proof under SCR 22.31. In reaching this
conclusion the referee made specific
conclusions of law and discussed the
reasoning underlying those conclusions. The
referee concluded Attorney George has not
shown by clear, satisfactory, and convincing
evidence that during his period of
suspension, he has not engaged in law-
related work in violation of SCR 22.26(2).
He concluded Attorney George has not
complied fully with the terms of the order
of suspension and that his conduct since the
suspension or revocation has not been
exemplary and above reproach. The referee
concluded further that Attorney George does
not have a proper understanding of and
attitude toward the standards that are
imposed upon members of the bar, and that he
has not shown he will act in conformity with
such standards. The referee concluded
Attorney George cannot safely be recommended
to the legal profession, the courts, and the
public as a person fit to be consulted by
others and to represent them and otherwise
act in matters of trust and confidence, and
in general to aid in the administration of
justice as a member of the bar and as an
officer of the courts. The referee concluded
Attorney George has not complied fully with
the requirements set forth in SCR 22.26.
The referee concluded Attorney George has
not shown by clear, satisfactory, and
convincing evidence that he has the moral
character to practice law in Wisconsin; that
his resumption of the practice of law will
not be detrimental to the administration of
justice or subversive of the public
interest; that his representations in the
petition, including the representations
required by SCRs 22.29(4)(a) to [(m)] and
22.29(5), are substantiated; and that he has
complied fully with the terms of the order
of suspension and with the requirements of
SCR 22.26.
¶10 We consider these conclusions de
novo. We begin by acknowledging that some
of Attorney George's past conduct has been
deeply flawed. He has been professionally
disciplined and criminally prosecuted for
that bad conduct. He has been less than
forthcoming with information about his
activities while under suspension. He has
steadfastly maintained that he did nothing
wrong and that his criminal prosecution was
politically motivated. He appears to
operate under the misapprehension that he is
somehow entitled to reinstatement upon the
expiration of his license suspension.
Indeed, Attorney George's approach to this
entire reinstatement proceeding has made it
a more difficult and time-consuming inquiry
than it might otherwise have been.
¶11 However, we focus on the specific
question before us today: Whether Attorney
George has demonstrated by clear,
satisfactory, and convincing evidence that
his license to practice law should be
reinstated at this time. After careful
review of the entire record, we conclude the
answer to this question is, "Yes."
¶12 The referee concluded Attorney
George did meet certain of the requirements
necessary for reinstatement. There is no
dispute Attorney George desires to have his
license reinstated and that he has
maintained competence and learning in the
law by attendance at identified educational
activities. We agree with these conclusions.
¶13 The referee commented that Attorney
George could have done more to pay his
restitution obligations in federal court and
his costs due in the disciplinary proceeding
in this court. However, the referee
concluded Attorney George should not be
denied reinstatement even though he has not
yet fully paid his restitution obligations.
¶14 More specifically, the referee found
that as "a result of being imprisoned and
having his law license suspended, [Attorney
George] has been unable to pay all past
debts, family obligations, current living
expenses, Federal restitution, and the cost
of his suspension proceeding." The referee
concluded Attorney George "should be paying
more on a monthly basis toward costs and
restitution." We agree with these findings,
and we also agree with the referee's
observation that Attorney George should not
be denied reinstatement on the basis that
those costs have not been paid. As to the
restitution ordered in his federal case, as
the referee found, Attorney George continues
to challenge the remaining amount of
restitution. Again, we agree with the
referee's conclusion that his failure to pay
more toward this restitution obligation
should not preclude his reinstatement.
¶15 The referee was particularly
troubled by evidence that Attorney George
may have practiced law while under
suspension, may have failed to comply with
the terms of the suspension order, has
failed to acknowledge any wrongdoing, and
remains on federal supervised release on
terms that would seem to preclude the
practice of law. We address these serious
matters in turn.
¶16 The reinstatement process requires
Attorney George to show by clear,
satisfactory, and convincing evidence that
during his period of suspension, he has not
engaged in law-related work in violation of
SCR 22.26(2), which provides:
An attorney whose license to practice law
is
suspended or revoked or who is suspended
from the practice of law may not engage in
this state in the practice of law or in any
law work activity customarily done by law
students, law clerks, or other paralegal
personnel, except that the attorney may
engage in law related work in this state for
a commercial employer itself not engaged in
the practice of law.
This is a critical inquiry because it
implicates several related rule provisions
relevant to reinstatement. Supreme court
rule 22.29(4)(b) requires a petitioner
demonstrate he has not practiced law during
the period of suspension or revocation.
Supreme court rule 22.29(4)(c) requires a
showing that the petitioner has complied
fully with the terms of the order of
suspension or revocation. Supreme court
rule 22.29(4)(h) requires a demonstration
that the "petitioner has fully complied with
the requirements set forth in SCR 22.26."
Supreme court rule 22.31(1)(d) requires
Attorney George demonstrate that he has
complied fully with the terms of the order
of suspension or revocation and with the
requirements of SCR 22.26. Proof of
compliance with SCR 22.26 "is a condition
precedent to reinstatement of the attorney's
license to practice law." See SCR 22.26
(3).
¶17 During the course of his suspension,
Attorney George acted as a paid consultant
for two business entities. Attorney George
worked as a consultant for Pennebaker
Enterprises LLC, a business engaged in
commercial roofing and sheet metal, for
approximately one year during his
suspension. As a consultant, Attorney
George "help[ed] [Pennebaker Enterprises]
with [its] insurance issues, worker's comp
issues, stuff like that, or general HR
matters." Attorney George was paid $5,000
per month for his services with Pennebaker
Enterprises LLC.
¶18 Attorney George also has worked as a
consultant for R.J. Harris and Associates, a
marketing company, during his suspension.
Attorney George apparently worked on
diversity, personnel, and legislative issues
on behalf of R.J. Harris and Associates'
clients. Attorney George has been paid
$3,000 a month for at least eight months of
work during his suspension.
¶19 The referee was concerned about
several aspects of Attorney George's
activities while under suspension. In
particular, the referee noted that the
evidence Attorney George provided regarding
his activities while under suspension
was "not clear."
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¶20 The referee ultimately concluded
that Attorney George had violated SCR 22.26
by providing law-related work for more than
one commercial employer, reasoning that the
intent of SCR 22.26(2) "is to prohibit a
suspended lawyer from engaging in law
related work, as a consultant, or otherwise,
for multiple employers, entities, and
individuals." The referee commented
that "[p]roviding law related work, as a
consultant, for multiple employers or
entities, circumvents the rule and amounts
to the practice of law."
¶21 We disagree with this conclusion.
Supreme court rule 22.26(2) does not
preclude a suspended attorney from engaging
in law-related work on behalf of more than
one employer.
¶22 With respect to the allegations that
Attorney George engaged in the unauthorized
practice of law, we agree that the details
Attorney George provided in his petition for
reinstatement regarding his law-related
activities during his suspension were
somewhat cursory, complicating our inquiry.
That said, we conclude that Attorney George
satisfied the requirements of SCR 22.26(2).-
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¶23 The referee expressed legitimate
concern about Attorney George's failure to
acknowledge wrongdoing. As the referee
noted, Attorney George believes his
prosecution in federal court was politically
motivated:
He does not believe he did anything
wrong.
He pled guilty only to avoid the risk of
greater penalties. He believes that
the "truth" will ultimately come out and
show he did nothing wrong.
What are the ramifications of Attorney
George's belief? Should this preclude his
reinstatement? The referee ultimately
determined that he could not conclude that
Attorney George has the proper understanding
of legal standards or that he will act in
conformity with the standards. The referee
explained:
Several times during the hearing, I asked
[Attorney] George to address his current
feelings on the conduct that led to his
discipline. It was clear to me that he has
difficulty expressing remorse for his
conduct, given the fact that he does not
feel he did anything wrong. [Attorney]
George did indicate that his past problems
were the result of his political career. He
testified that those problems will not
reoccur, given that he can no longer be an
elected politician.
¶24 We respect the referee's insightful
observations, but we reach a different
conclusion based on the same facts. There
is nothing in the supreme court rules that
requires Attorney George to acknowledge the
wrongfulness of his actions before
reinstatement. The rules do require
Attorney George to have a proper
understanding of and attitude towards the
standards imposed on members of the
Wisconsin bar and to act in conformity with
those standards if reinstated. We note that
each of the seven witnesses who testified on
Attorney George's behalf believes Attorney
George would not engage in further
misconduct in the future. All of the
witnesses believe Attorney George to be
honest and all stated they would also trust
Attorney George with their future legal
affairs. The record evidence shows Attorney
George greatly regrets the embarrassment he
has brought to his family and his family
name. Indeed, the referee acknowledged the
evidence "strongly suggests that [Attorney]
George will avoid further misconduct" albeit
because "he does not wish to go to prison
again or lose his license to practice law
again, and not because he appreciates the
wrongfulness of his previous misconduct."
¶25 We are reluctant to hold that an
individual must explicitly admit wrongdoing
to be reinstated. Attorney George has
entered a guilty plea to criminal conduct
and that fact is a matter of public record.
He has been criminally sanctioned,
incarcerated, and professionally disciplined
for his offenses. The evidence supports a
conclusion that Attorney George will not
commit professional misconduct in the
future. As such, we are persuaded that he
has met his burden of showing that he has a
proper understanding of and attitude toward
the standards imposed on members of the
Wisconsin bar, and that he will act in
conformity with those standards.
¶26 The most troubling aspect of
Attorney George's reinstatement petition for
this court was the fact that Attorney George
remained on federal supervised release with
conditions that made it potentially
difficult for him to resume the practice of
law and comply with supreme court rules.
The referee stated, "While the Supreme Court
rules do not specifically address the issue
of reinstatement of a lawyer who remains
under Federal supervised release, conflict
of interest, fiduciary, and confidentiality
issues are apparent, given the current
conditions of petitioner's supervised
release."
¶27 We share the referee's concern that
the terms of Attorney George's supervised
release could constrain his ability to
practice law. He was not allowed to hold
employment having fiduciary responsibilities
without the consent of his probation
officer. He was allowed to maintain only
one checking account into which all income
must be deposited and expenses paid. He was
required to disclose all other accounts to
his probation officer. He was not allowed
to dispose of any assets exceeding a fair
market value of $500 without the approval of
his probation officer. Subject to the
discretion of his probation officer,
Attorney George might have been required to
notify third parties of risks that may be
occasioned by Attorney George's criminal
record or personal history.
¶28 Attorney's George's period of
supervised release ended on August 9, 2010.
Therefore, the strict conditions imposed
upon him are no longer potential impediments
to his practice of law.
¶29 Attorney George is a high-profile
individual whose criminal and professional
misconduct has been well publicized.
However, we must guard against a temptation
to "re-try" the disciplinary case or revisit
the criminal conduct for which Attorney
George has been punished. At the same time,
Attorney George is not "entitled to
reinstatement" simply because the period of
suspension has lapsed. See In re
Disciplinary Proceedings Against Hyndman,
2002 WI 6, ¶4, 249 Wis. 2d 650, 638 N.W.2d
293.
¶30 Upon careful consideration of the
entire record, we conclude Attorney George
has met his burden of proof with respect to
the elements necessary to justify
reinstatement. We conclude Attorney George
can safely be recommended to the legal
profession, the courts, and the public as a
person fit to be consulted by others as a
lawyer.
¶31 In granting Attorney George's
petition for reinstatement, we stress that
he is not being held to a different or
higher standard of conduct than other
attorneys in this state. All attorneys
licensed to practice in Wisconsin are held
to the highest standard of conduct, and we
expect nothing less from Attorney George.
¶32 IT IS ORDERED that Gary R. George's
license to practice law in Wisconsin is
reinstated effective the date of this order.
¶33 IT IS FURTHER ORDERED that within 60
days of the date of this order, Gary R.
George shall pay to the Office of Lawyer
Regulation the costs of this proceeding. If
the costs are not paid within the time
specified, and absent a showing to this
court of his inability to pay the costs
within that time, the license of Gary R.
George to practice law in Wisconsin shall be
suspended until further order of the court.
¶34 DAVID T. PROSSER, J., did not
participate.
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