Judicial Panel Recommends Suspension for Judge! Is that Enough?

I was in court on Wednesday and the Judge was reading a report issued by a panel of the state's Judicial Standard's Board. The judge in my case noted that he was reading about all things not to do when you are a judge. He was right.

Rochelle Olson from the Minneapolis Star Tribune wrote an interesting piece on the panel's recommendation. Timothy Blakey, a judge in Goodhue and Dakota Counties, Minnesota, sent business to his divorce lawyer - to whom he owed something in excess of $108,000 for unpaid fees.

The Lawyer likes the business, gives Blakely a $63,503 discount, and says she hopes he will continue to send her business. A panel of the Minnesota Judicial Standards Board reviewed the facts and recommended that Judge Blakely be suspended without pay for six months. Forever seems like a better recommendation.

What is not clear to me is, why the discount is not considered at least attempted bribery by the attorney, and accepting a bride by the judge. In Minnesota the applicable statute reads:

609.42 Bribery.

Subdivision 1. Acts constituting. Whoever does any of the following is guilty of bribery and may be sentenced to imprisonment for not more than ten years or to payment of a fine of not more than $20,000, or both:

(1) offers, gives, or promises to give, directly or indirectly, to any person who is a public officer or employee any benefit, reward or consideration to which the person is not legally entitled with intent thereby to influence the person's performance of the powers or duties as such officer or employee; or

(2) being a public officer or employee, requests, receives or agrees to receive, directly or indirectly, any such benefit, reward or consideration upon the understanding that it will have such an influence;

***

Subd. 2. Forfeiture of office. Any public officer who is convicted of violating or attempting to violate subdivision 1 shall forfeit the public officer's office and be forever disqualified from holding public office under the state.

Additionally, forgiveness of a debt is taxable income. The judge gained $63,503 in taxable
income because the debt was forgiven. That should be an impressive tax bill.

It is not uncommon in Minnesota, and I assume elsewhere, for judges to recommend certain mediators or a group of mediators to litigants. It is also common for judges to recommend firms to people that ask. This is not improper in itself.

What Blakely and his divorce attorney did is hopefully very rare. The matter now goes to the entire Judicial Standards Board for a final recommendation, and then on to the Minnesota Supreme Court - assuming the Board sustains the recommendation and agrees that discipline in warranted.

As an attorney that practices before many of the courts in the state, I think the recommendation is far too light. Would Judge Blakely recuse himself if the attorney was representing a party before his court?  Should he? 

Hopefully the board will reconsider the recommendation. If the public losses trust in the courts, we have lost the trust of a critical part of our government.  If litigants are worried about judicial corruption, we are in trouble as a society.

Judge Blakely needs to step down, and the Lawyer's Board needs to look at his lawyer.

Someone might also want to take a peek at the judge's tax return to be sure he paid his taxes on the new income.

Predictions! New Web and Blog Scam Aimed at Lawyers!

First the scam. I just ran into this post from Reid My Blog about the false use of a lawyer's name and web site to defraud people. I think all lawyers need to be aware of the scams out there that could impact their clients. While I don't have any great ideas about how to answer this threat, other than communicate with existing clients, the threat seems real.

Most of us occasionally receive an email from someone claiming to be looking for a lawyers with our unspecified qualifications. The e-mail is always from a foreign country, although which one is hard to know. As lawyers we can laugh at the weak attempt to steal money from us or our clients. This new scam seems to rely upon the victim checking to see that the attorney is in good standing, and relying upon that information to fall for the scam, without the knowledge of the attorney.

As always, we need to be aware and watch for any unusual activity.

Predictions for 2009

Keeping with the theme of crime and fraud, I am predicting that 2009 will bring new revelations about additional criminal complaints for major fraud schemes. I can't feel comfortable believing the Madoff and Petter are the only major financial criminals. The era of deregulation has had a fairly long run, and when no-one is looking, there are always people ready to take advantage. I predict, without any actual knowledge of any investigation, that there will be several more arrests for major frauds. Hopefully I am wrong, and the worst is over.

I am interested in what others think.

Finally: Happy New Year to All!

Gavin Craig

 

 

Petters Troubles Increase: The Legal Actions Start.

It didn't take long for the lawsuits to get filed after allegations of fraud were leveled against Petters and some of his companies. At least two so far: in the Federal District Court, Southern District of New York, and in the District of Minnesota. While we have not seen the results of the investigations or what the agents found while searching the various properties, the affidavit describing the allegations and the basis for the requested search warrants are stunning in their magnitude.

The Affidavit in support of the search warrant is here. There are going to be a significant number of Defendants if there is evidence supporting the allegations in the affidavits. Don't be surprised to see charges of tax fraud added on to the list.

If the allegations are correct, you need to wonder if there is any real money is to satisfy the claims of the plaintiffs.

More to come.