Motion List released on: August 21, 2019
By Scheinkman, P.J.; Mastro, Rivera, Dillon and Austin, JJ. MATTER of Michael-Hyun W. Lee, admitted as Hyun W. Lee, an attorney and counselor at law. Grievance Committee for the Second, Eleventh, and Thirteenth Judicial Districts, petitioner; Michael-Hyun W. Lee, res — (Attorney Registration No. 3030434) — Motion by the Grievance Committee for the Second, Eleventh, and Thirteenth Judicial Districts to immediately suspend the respondent from the practice of law, pursuant to 22 NYCRR 1240.9(a)(5), upon a finding that he is guilty of professional misconduct immediately threatening the public interest based upon uncontroverted evidence of professional misconduct which establishes his misappropriation of client funds, and to refer the issues raised to a Special Referee, to hear and report. The Grievance Committee commenced this disciplinary proceeding by serving and filing a notice of petition and a verified petition, both dated April 18, 2019. The respondent was admitted to the Bar at a term of the Appellate Division of the Supreme Court in the Second Judicial Department on September 17, 2003, under the name Hyun W. Lee. Upon the papers filed in support of the motion and the papers filed in relation thereto, it is ORDERED that the motion is granted; and it is further, ORDERED that pursuant to 22 NYCRR 1240.9(a) (5), the respondent, Michael-Hyun W. Lee, admitted as Hyun W. Lee, is immediately suspended from the practice of law in the State of New York, pending further order of the Court; and it is further, ORDERED that the respondent, Michael-Hyun W. Lee, admitted as Hyun W. Lee, shall promptly comply with this Court’s rules governing the conduct of disbarred or suspended attorneys (see 22 NYCRR 1240.15); and it is further, ORDERED that pursuant to Judiciary Law §90, during the period of suspension and until further order of this Court, the respondent, Michael-Hyun W. Lee, admitted as Hyun W. Lee, is commanded to desist and refrain from (1) practicing law in any form, either as principal or agent, clerk, or employee of another, (2) appearing as an attorney or counselor-at-law before any court, Judge, Justice, board, commission, or other public authority, (3) giving to another an opinion as to the law or its application or any advice in relation thereto, and (4) holding himself out in any way as an attorney and counselor-at-law; and it is further, ORDERED that if the respondent, Michael-Hyun W. Lee, admitted as Hyun W. Lee, has been issued a secure pass by the Office of Court Administration, it shall be returned forthwith to the issuing agency and the respondent shall certify to the same in his affidavit of compliance pursuant to 22 NYCRR 1240.15(f); and it is further, ORDERED that the issues raised are referred to the Hon. Abraham Gerges, 31 Elizabeth Lane, PO Box 5025, Quogue, NY 11959, as Special Referee, to hear and report, with the hearing to be completed within 60 days of the date of this decision and order on motion, or as soon thereafter as practicable, and the report, which contains his findings on the issues and charges, to be submitted within 60 days after the conclusion of the hearing or the submission of post-hearing memoranda. We find, prima facie, that the respondent is guilty of professional misconduct immediately threatening the public interest, based on the uncontroverted evidence that he misappropriated escrow funds. Uncontroverted Evidence_of Misappropriation On June 18, 2018, the Grievance Committee opened a sua sponte investigation after receiving notification from the Lawyers’ Fund for Client Protection concerning a dishonored check drawn on the respondent’s attorney trust account maintained at Shinhan Bank, entitled, “Attorney Trust Account/IOLA Law Office of Michael Lee and Associates, PLLC,” account number ending in 6354 (hereinafter the escrow account). During the investigation, the respondent produced escrow account records for the period from January 1, 2018, through August 31, 2018. A review of those records confirms that the respondent misappropriated funds entrusted to him in connection with seven client matters, as follows: Yangwen Kang Matter The respondent deposited a $111,000 down payment into his escrow account, on behalf of his client, Yangwen Kang, who was selling real property. While entrusted with those funds, the respondent’s escrow account balance fell below the amount he was required to maintain for the Kang transaction, as follows: January 16, 2018, $22,644.39; January 17, 2018, $1,354.39; and January 18, 2018, $-51,760.61. Ko Matter The respondent deposited a $99,500 down payment into his escrow account, on behalf of his client, Patrick Ko, who was selling real property. While entrusted with those funds, the respondent’s escrow account balance fell below the amount he was required to maintain for the Ko transaction, as follows: January 26, 2018, $62,479.18; January 29, 2018, $35,979.39; February 2, 2018, $20,294.55; and February 5, 2018, $18,579.55. Kim Matter The respondent deposited a $68,500 down payment into his escrow account, on behalf of his client, Rachel Kim, who was selling real property. While entrusted with those funds, the respondent’s escrow account balance fell below the amount he was required to maintain, as follows: March 9, 2018, $-28,860.43; and March 13, 2018, $-34,960.43. Animal Rescue of Queens, Inc., Matter On February 22, 2018, endowment funds totaling $1,455,807.81were wired into the respondent’s escrow account on behalf of his client, Animal Rescue of Queens, Inc. After making disbursements related to the client, the respondent should have maintained $878,638.67 on deposit in his escrow account for this client, on March 9, 2018. However, the balance on that date was $819,665.18. Lee Matter The respondent deposited a $91,000 down payment into his escrow account, on behalf of his clients, Jaewon and Kyonghee Lee, who were selling real property. While entrusted with those funds, the respondent’s escrow account balance fell below the amount he was required to maintain for the Lee transaction, as follows: March 30, 2018, $76,857.05; April 17, 2018, $9,038.87; and April 18, 2018, $-34,386.43. Choi Matter The respondent deposited a $10,000 down payment into his escrow account, on behalf of his client, Seon Hee Choi and Jong Hak Choi, who were selling real property. While entrusted with those funds, the respondent’s escrow account balance fell below the amount he was required to maintain for the Choi transaction, as follows: July 2, 2018, $-145,757.49; and July 3, 2018, $-45,757.49. Sung Jin Paik Matter On June 26, 2018, the respondent deposited a $63,500 down payment into his escrow account from Sung Jin Paik to hold until his closing. While entrusted with those funds, the respondent’s escrow account balance fell below the amount he was required to maintain, as follows: July 2, 2018, $-145,757.49; and July 3, 2018, $-45,757.49. Conclusion In an affidavit dated June 5, 2019, the respondent stated that after he had a “full opportunity to discuss” this matter with his counsel, and concluded that “it [was] appropriate for [him] not to oppose the Grievance Committee’s request that [he] be interimly suspended.” (Emphasis in original.) We find that the Grievance Committee has sufficiently demonstrated that the respondent poses an immediate threat to the public interest by his pattern and practice of misappropriating escrow funds. Based on the foregoing, the motion is granted, the respondent is immediately suspended from the practice of law pursuant to 22 NYCRR 1240.9(a)(5), pending further order of this Court, and the matter is referred to the Special Referee, to hear and report. SCHEINKMAN P.J., MASTRO, RIVERA, DILLON and AUSTIN, JJ., concur.
