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ATTORNEY disciplinary proceeding.
Attorney's license suspended.
¶1 PER CURIAM. We review, pursuant to
SCR 22.17(2), the report and recommendation
filed by referee, John Decker, in this
disciplinary proceeding involving Attorney
Mark E. Sostarich.
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¶2 Attorney Sostarich was admitted to
practice in 1978. He has no prior
disciplinary history. On May 18, 2004, this
court summarily suspended Attorney
Sostarich's license to practice law in
Wisconsin pursuant to SCR 22.20(1), upon
learning that he had pled guilty in federal
court to one count of conspiracy to commit
offenses involving federal program funds
under Title 18, U.S.C. §§ 371, 666, 1341 and
1346. United States v. Sostarich, No. 03 CR
260 (E.D. Wis. 2005).
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¶3 On July 19, 2004, the Office of
Lawyer Regulation (OLR) filed a disciplinary
complaint against Sostarich 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." The parties jointly agreed
that the referee would defer his
recommendation until Sostarich was sentenced
in federal district court, which, after some
procedural delays, occurred in March 2005.
¶4 On May 16, 2005, the referee filed
his report and recommendation. The parties
have agreed not to appeal the report.
¶5 The factual background giving rise
to Sostarich's conviction will be summarized
briefly. The complaint filed against
Sostarich in the federal court alleged that
Sostarich improperly provided former State
Senator Gary George (George) with a portion
of funds Sostarich obtained in connection
with legal work he performed for the Police
Athletic League (PAL), a non-profit
organization providing educational and
recreational opportunities for youth in
Milwaukee. The complaint alleged further
that George, who was on the PAL board of
directors, received more than $50,000 as a
result of this arrangement. George's
participation and receipt of fees relating
to the PAL legal work was not disclosed to
other PAL board members until October 2003,
when the matter was already the subject of a
criminal investigation. Sostarich accepted
a plea agreement and entered a guilty plea
to the charge on January 30, 2004.
¶6 On March 11, 2005, Sostarich was
sentenced in federal court to three years
probation, conditioned on 150 days of home
confinement under the usual conditions of
home confinement, including electronic
monitoring. Sostarich was also ordered to
make restitution to PAL in the amount of
$42,649 and to perform 75 hours of community
service.
¶7 A hearing was conducted in the
disciplinary matter on April 12 and 13,
2005. The referee made his recommendations
at the close of the hearing and filed his
formal report on May 16, 2005.
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¶8 After enumerating the circumstances,
the referee concluded that the OLR had
established by clear and convincing evidence
that, by engaging in conduct resulting in
his conviction of one count of conspiracy to
commit mail fraud in violation of Title 18,
U.S.C. § 371, Sostarich committed a criminal
act that reflects adversely on his honesty,
trustworthiness or fitness as a lawyer in
other respects, in violation of SCR 20:8.4
(b). We conclude that the referee's
findings of fact are supported by
satisfactory and convincing evidence. We
also agree with the referee's conclusions of
law that Attorney Sostarich engaged in
professional misconduct and turn to the
question of the appropriate discipline for
this misconduct.
¶9 The referee incorporated into his
report the recommendation statements he made
on the record at the close of the
disciplinary hearing, recommending that
Sostarich be suspended for a period of one
year, retroactive to the date of his summary
suspension on May 18, 2004. We consider
these statements together with the report
and recommendation.
¶10 The referee noted at the hearing
that the OLR had recommended an 18-month
suspension, and Attorney Sostarich requested
a suspension of 90 days. The referee
proceeded to discuss the nature of
Sostarich's violation, noting the
seriousness of the charge to which Sostarich
pled guilty.
¶11 The referee also considered
Sostarich's poor health, his family
commitments, and remarked on Sostarich's
very extensive community and volunteer
service, particularly his "long and
distinguished record of pro bono service to
individual clients." He noted that
Sostarich accepted full responsibility for
his actions and has cooperated fully with
federal and OLR investigators and
prosecutors.
¶12 While acknowledging the "substantial
amount of seriousness" of Sostarich's
misconduct, the referee explained that he
was influenced by the many mitigating
circumstances and by testimony of one of the
injured clients, who volunteered "I think
Mark [Sostarich] got snookered, just as we
did." The referee was clearly moved by
Sostarich's sincere remorse.
¶13 We have carefully considered the
referee's recommendation as to discipline.
However, Attorney Sostarich pleaded guilty
to a serious felony charge; we are not
persuaded that a retroactive suspension of
12 months is sufficient discipline for the
serious misconduct committed in this matter.
¶14 We conclude that the OLR's
recommended suspension of 18 months is more
appropriate to the serious nature of the
underlying conviction, but agree with the
referee that the suspension should be
imposed retroactive to the date on which
Sostarich's license to practice law was
summarily suspended based on the criminal
conviction. We further conclude that
Attorney Sostarich should be required to pay
the costs of the proceeding.
¶15 IT IS ORDERED that Attorney Mark E.
Sostarich's license to practice law in
Wisconsin is suspended for a period of 18
months, retroactive to May 18, 2004.
¶16 IT IS FURTHER ORDERED that, if he
has not already done so, Attorney Mark E.
Sostarich comply with the provisions of SCR
22.26 concerning the duties of a person
whose license to practice law in Wisconsin
has been suspended.
¶17 IT IS FURTHER ORDERED that within 60
days of the date of this order Attorney Mark
E. Sostarich 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 Attorney Mark E. Sostarich to
practice law in Wisconsin shall remain
suspended until further order of the court.
¶18 DAVID T. PROSSER and LOUIS B.
BUTLER, JR., J.J. did not participate.
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