Attorney Disbarred for Misappropriating Conservatorship Assets

Maryland's highest court disbars an attorney appointed as conservator for a disabled person for intentionally misappropriating conservatorship funds, even though the attorney's alleged motive was to maximize the estate's assets. Attorney Grievance Commission v. Whitehead (Md. App., No. 53, June 19, 2008).

A District of Columbia court appointed attorney H. Allen Whitehead as conservator of the estate of Reginald V. Grayson, Jr., a disabled adult. Without obtaining court approval, Mr. Whitehead paid himself attorneys fees of $42,000 and borrowed $600,000 from the estate to purchase investment property for his own benefit. A disciplinary action in the District of Columbia resulted in Mr. Whitehead's disbarment. Subsequently, Maryland's Attorney Grievance Commission filed reciprocal disciplinary charges against Mr. Whitehead.

Following an evidentiary hearing, a hearing judge concluded that although there was no nefarious purpose, Mr. Whitehead had violated multiple rules by using estate assets for his own benefit, essentially self-dealing. Mr. Whitehead took exception to portions of the judge's determination, arguing that he did not engage in any dishonesty, fraud or misrepresentation, and that his motivation was to benefit the estate by obtaining a higher rate of interest through the real estate purchase.

The Maryland Court of Appeals, the state's highest court, orders that Mr. Whitehead be disbarred. The court finds that "the misappropriation of entrusted funds is an act infected with deceit and dishonesty . . ." and that regardless of his motives, Mr. Whitehead's intentional misappropriation of conservatorship funds from a vulnerable adult, after years of legal experience, warrants disbarment.

To download the full text of this decision in PDF format, go to: https://www.mdcourts.gov/opinions/coa/2008/53a06ag.pdf 
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