Regulating Lawyer Misconduct in Florida: Who's Responsible?

U.S. Senator Bill Nelson's Campaign Funded by Thousands of Dollars From Overcharging Law Firm's Principals

2006-04-29T09:55:00.000-07:00

JACKSONVILLE, FLA--- U.S. Senator Bill Nelson, the senior Senator from Florida, is seeking re-election in 2006. Records reveal Nelson's campaign received thousands of dollars in contributions in the years 2003 through 2005 from the principals of a Jacksonville law firm who admit it overcharged its personal injury clients by $130,000 around the same period.

The law firm in question is FARAH, FARAH & ABBOTT, P.A. (a/k/a The Law Offices of Eddie Farah). According to the firm's web site, it is now known as the Law Offices of Farah & Farah, P.A. The principals in the firm are Eddie Farah and his brother, Charlie ("Chuck") E. Farah.

The Law Offices of Eddie Farah employed Florida attorney Jeffrey R. Hill in 2004 when he discovered it was regularly overcharging its personal injury clients by substantial sums. Hill says, "The firm was often 'padding' costs charged to clients by $300 or more per case and had been doing so for several years. Clients were required to sign settlement statements certifying they agreed with the falsified figures before any portion of their settlement funds would be paid to them. The firm's fee contracts, accounting records and settlement statements clearly document its overcharging practices."

Attorneys admit this law firm overcharged clients by $130,000 in the years 2002 through 2004. John A. Weiss, Esq. of Tallahassee represented Eddie and Chuck Farah, before the Bar. Weiss admitted the firm's overcharges in a Sept. 22, 2005 letter to The Bar stating,

"As an aside, I would advise you that the firm has refunded in excess of $120,000.00 ... to those clients who were inadvertently overcharged for costs. Approximately $10,000.00 remains undisbursed because the firm, and the private investigator it subsequently hired, could not find the individuals."

Hill observes, "That certainly sounds like a lot of money to be 'inadvertently' overcharged. The firm would have to overcharge 400 clients by $300 each to reach $120,000."

Even The Florida Bar's own audit confirmed $130,000 in overcharges and a lack of substantial compliance with Bar rules governing trust accounts in the years 2002 through 2004. Certified Public Accountant and Certified Fraud Examiner James F. Wells prepared the report following his audit of Farah's trust account records and procedures. Wells' Audit Report noted,

"Administrative costs that were not substantiated by documentary evidence were charged on some settlement statements in personal injury cases. These administrative costs were in excess of the documented costs such as copies, faxes and postage. Rule 5-1.2(b)(4) requires documentary support for all disbursements from the trust account. These costs were not authorized by the clients."

In discussing corrective action taken, Wells stated,

"The firm reviewed client files and settlement statements to determine the specific clients that had been charged unsubstantiated administrative costs. Refunds totaling approximately $130,000, including interest, were issued to those clients."

Wells concluded,

"In my opinion, Mr. Farah's trust accounting records and procedures in connection with the documentation of costs paid from trust funds during the period from January 1, 2002 through December 31, 2004 were not in substantial compliance with The Florida Bar's rules governing trust accounts." (Emphasis supplied).

Online records show Nelson's campaign received
$12,500 from Eddie Farah and $2,500 from Chuck Farah in 2005 for a total of $15,000 that year. Eddie Farah apparently also contributed $1,000 to Nelson's campaign in 2003. Records for 2004 and 2006 campaigns show the Farah brothers contributed thousands of dollars more to Federal Democratic candidates John Kerry, Betty Castor, Patrick Leahy, Corrine Brown and Debbie Stabenow.

The source of the funds contributed by the Farahs remains in question.

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

Jailhouse Lawyers: The Story Continues

2006-03-17T09:25:00.000-08:00

According to a Mar. 1, 2006 article in the Florida Times-Union, a Federal Court convicted attorney David Fleet in Oct. 2005 of "multiple counts of wire fraud, money laundering and other charges" and U.S. District Judge M. Casey Rodgers sentenced him this week to three years incarceration. The article states that Fleet is to report to prison on May 1, 2006.

Despite Fleet’s criminal conviction and sentencing, as of Apr. 15, 2006 The Florida Bar's online records show Fleet is still a member in good standing of The Florida Bar and licensed to practice law. He is with the law firm Fleet, Spencer, Martin & Kilpatrick, P.A. and the firm's web page states he practices in the areas of criminal defense and business and commercial litigation out of the its Destin office.

Six months after Fleet’s conviction on multiple fraud related offenses against clients and weeks after being sentenced to Federal prison, The Florida Bar continues to allow Fleet’s practice of law and representation of clients.

This is not an isolated case. A Feb. 4, 2006 article in the Miami Herald reports that attorney Samuel I. Burstyn was sentenced to 3 ½ years in prison in a money-laundering case and ordered to permanently resign from The Florida Bar. According to the article, he entered a plea agreement back in Sept. 2005 and had already served seven months of his sentence.

The Florida Bar has plainly been well aware of Burstyn's conviction and sentencing according to a Feb. 6, 2006 posting on its web site. As of Mar. 3, 2006, Burstyn had already been incarcerated for seven months, yet The Florida Bar's online records still showed him as being a member in good standing and eligible to practice law.

The Florida Bar finally got around to taking at least some action. As of Mar. 17, 2006, The Florida Bar's online records have been changed to show Burstyn is now an “Other Affiliate” who is not currently eligible to practice law.

What about attorney David Fleet? When will The Florida Bar get around to addressing his status?

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

Governor Jeb Bush Not-So-Glad After All and Now Says Matter is Not Within His Jurisdiction

2006-03-03T15:15:00.000-08:00

Unresponsiveness by Florida Attorney General Charlie Crist's office necessitated calling upon Governor Jeb Bush to look into selective enforcement of Florida's Deceptive and Unfair Trade Practices Act, at least where politically well-connected law firms are concerned. See previous posts for additional details.

Governor Bush's office initially responded to my concerns by email dated Feb. 22, 2006 from Warren Davis of the Governor's Office of Citizens' Services. Davis stated, "Governor Bush is glad you took the time to share your perspective and asked me to respond on his behalf."

According to Davis, "Governor Bush wants to know how Floridians feel about the many critical issues we face, and promises to keep your ideas in mind as he forms policy for addressing these concerns."

Sadly, that email was followed by a Mar. 3, 2006 email from Rex T. Newman on behalf of Governor Bush's office stating,

"Although the Governor welcomes the opportunity to review your concerns, the Attorney General is a separated elected, cabinet-level position and outside of the jurisdiction of the Governor's Office."

Hmmm. If the matter is not within the jursidiction of The Florida Bar, the City of Jacksonville, Florida Attorney General Charlie Crist or Florida Governor Jeb Bush, who is responsible?

Is anybody regulating law firm fraud these days? If so, you have to wonder why there hasn't been a referral to the appropriate agency by the officials who have already been notified.

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

Jailhouse Lawyers?

2006-03-02T08:45:00.000-08:00

According to a Mar. 1, 2006 article in the Florida Times-Union, a Federal Court convicted attorney David Fleet in Oct. 2005 of "multiple counts of wire fraud, money laundering and other charges" and U.S. District Judge M. Casey Rodgers sentenced him this week to three years incarceration. The article states that Fleet is to report to prison on May 1, 2006.

On Mar. 2, 2006, The Florida Bar's online records show Fleet is still a member in good standing of The Florida Bar and licensed to practice law. He is with the law firm Fleet, Spencer, Martin & Kilpatrick, P.A. and the firm's web page states he practices in the areas of criminal defense and business and commercial litigation out of the its Destin office.

Does this strike anyone beside me as being odd? How can The Florida Bar allow an attorney convicted four months ago of "multiple counts of wire fraud, money laundering and other charges", and scheduled to report for a three year prison sentence, to continue practicing law?

This is not an isolated case. A Feb. 4, 2006 article in the Miami Herald reports that attorney Samuel I. Burstyn was sentenced to 3 ½ years in prison in a money-laundering case and ordered to permanently resign from The Florida Bar. According to the article, he entered a plea agreement in Sept. 2005 and has already served seven months of his sentence. The Florida Bar is plainly well aware of Burstyn's conviction and sentencing according to a Feb. 6, 2006 posting on its web site. On Mar. 3, 2006, The Florida Bar's online records still showed Burstyn as being a member in good standing and eligible to practice law.

The Florida Bar's web site, states,

"The Florida Bar has an important role in the regulation of lawyer misconduct. A complaint of unprofessional conduct against a Florida Bar member is a serious matter. The processing and investigation of inquiries and complaints are a basic responsibility of the Bar as mandated by the Florida Supreme Court. The Bar seeks to protect the public from unethical lawyers."

Maybe The Florida Bar is waiting for someone to file formal inquiries or complaints with it as though the criminal convictions are not enough to prompt action. More likely, the lawyers may just be politically well-connected.

In any event, this gives new meaning to the term "jailhouse lawyers".

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

Gov. Bush Glad for Report of Attorney General Charlie Crist's Selective Enforcement of Florida's Deceptive and Unfair Trade Practices Act

2006-02-23T07:26:00.000-08:00

Unresponsiveness by Florida Attorney General Charlie Crist's office necessitated calling upon Governor Jeb Bush to look into selective emforcement of Florida's Deceptive and Unfair Trade Practices Act, at least where politically well-connected law firms are concerned. See previous posts for additional details.

By email dated Jan. 28, 2006, I asked Crist to explain for voters what his office's position is concerning this issue. After almost three weeks with no response from Crist, I sent two Feb. 14, 2006 emails to Governor Bush asking him to help correct a situation harmful to the public interest and more widespread than many imagine. I've still heard nothing from Crist, but that doesn't surprise me.

In drastic contrast to Crist's Office, Governor Bush's office promptly responded to my concerns by email dated Feb. 22, 2006 from Warren Davis from the Governor's Office of Citizens' Services. Davis stated, "Governor Bush is glad you took the time to share your perspective and asked me to respond on his behalf."

Davis suggested, "I encourage you to continue working with the Attorney General's office to resolve your concerns in this regard. As you know, the Attorney General is a state elected official who has administrative authority over his office and those under his supervision."

According to Davis, "Governor Bush wants to know how Floridians feel about the many critical issues we face, and promises to keep your ideas in mind as he forms policy for addressing these concerns."

I responded to Davis by email dated Feb. 22, 2006 explaining,

"Unfortunately, it seems futile to continue working with Attorney General Crist's office to resolve my concerns, I've contacted his office on several occasions over the last year with no results. Pursuing the issues through the media will hopefully prove productive."

"Selective enforcement of Florida's Deceptive and Unfair Trade Practices Act when well-connected law firms are involved is gaining increasing attention this election year. By email dated Jan. 28, 2006, I asked Florida Attorney General Crist to explain what his office's position is concerning this issue. So far, no response whatsoever. Seems like we Florida voters deserve better, particularly from a man who aspires to be our next Governor."

"Unresponsiveness by Florida Attorney General Charlie Crist's office is what led me to call upon Governor Bush. to look into the situation. Thank you and the Governor taking the time to consider and respond to my concerns."

I have faith that Governor Bush will stand by his promise to keep my ideas concerning Crist's Selective Enforcement of Florida's Deceptive and Unfair Trade Practices Act in mind as he forms policy addressing the critical issues facing Floridians. He's a Bush, after all, and I have yet to be disappointed by him, his brother or father.

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

A Solution to The Florida Bar's Inability to Evenhandedly Regulate Lawyer Misconduct

2006-02-11T14:52:00.000-08:00

Our system of government demands that the legal profession command the public's full trust and confidence. A recent survey by The Florida Bar's Research, Planning and Evaluation Department revealed 68% of those surveyed say the public does not have confidence in the legal system. See my previous posts for reasons I'm surprised that percentage isn't even higher.

Under the current system, Florida’s attorneys are licensed, supervised and regulated by the Florida Supreme Court through The Florida Bar, which is the delegated administrative arm of the Court. While self-regulation of the profession by The Florida Bar may have been a worthwhile experiment, it is becoming increasingly apparent that it fails to evenhandedly regulate lawyer misconduct. The Florida Bar's failure is a disservice to both the public and the professionally responsible attorneys who suffer by association.

Among the greatest flaws in The Florida Bar's grievance and disciplinary process are inadequate investigation and documentation to support grievance committee decisions. Written records are not usually kept of grievance committee proceedings. The discussions are typically oral and not, routinely, recorded. This fosters cronyism characterized by a lack of meaningful investigations and nod-nod, wink-wink decisions in cases involving well-connected lawyers. Many law firms are political juggernauts that enjoy a unique sheld against consequences for violating The Rules Regulating The Florida Bar.

Is there a solution to The Florida Bar's inability to appropriately regulate lawyer misconduct? It seems incapable of investigating itself. Maybe the current system just cannot be fixed and must instead be changed.

Legislators, public officials and special interest groups have in the past called for the regulation of the legal profession by an entity other than the Supreme Court of Florida. Florida's Department of Business and Professional Regulation (DBPR) seems the logical entity to take over since it already oversees licensing and regulation of most other professionals including accountants, veterinarians, contractors and about 200 other occupations. The Florida Bar has firmly opposed the proposed change but its arguments in opposition are unconvincing at best.

The DBPR would be a far better watchdog over the legal profession than The Bar and the Supreme Court of Florida. Just take a look at my posts summarizing the Bar's 'investigation' of The Law Offices of Eddie Farah's blatant overcharging practices.

The foxes have guarded the henhouse long enough. It's time to acknowledge the failed experiment of a self-regulating Bar and put a suitable system in place.

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

I Trust Juries

2006-02-03T08:21:00.000-08:00

JACKSONVILLE, FLA---I have faith in the American jury trial system. Lots of cronyism in politics, but juries have a knack for finding the truth. They have everything to gain and nothing to lose by rendering fair verdicts. Sometimes, the wrong verdict is rendered, but statistically the system is an overwhelming success.

No system is going to be perfect. The overhaul needed of The Florida Bar's role in regulating lawyer misconduct is one example. Florida Attorney General and 2006 gubernatorial candidate Charlie Crist's seemingly selective enforcement of Florida Deceptive and Unfair Trade Practices Act is another. See earlier posts in this blog for details concerning these examples.

The availability of trial by jury is one of the beauties of our justice system. It's an honor, although a bit of a pain in the butt, to serve on a jury regardless of the magnitude of the case. The cases are important to the parties involved and that makes them important to the system itself.

I trust juries. Juries are folks like you and me who have no political agendas to attend to in deciding the cases before them. One of my favorite movies is "To Kill a Mockingbird" starring Gregory Peck as lawyer Atticus Finch and a young Robert Duval as Arthur "Boo" Radley. A great film that was way ahead of its time. "The Verdict" starring Paul Newman and wonderful character actor Jack Warden is another -- the names of the characters aren't as engraved in my memory, but I haven't seen that film near as many times as I've seen 'Mockingbird'.

It's a bit like Frank Capra's classic film "It's a Wonderful Life" starring Jimmy Stewart, Donna Reed, Lionel Barrymore and many other fine actors -- a movie that's really stuck with me over the years. Not a courtroom drama, but one that still resonates for me. The Baileys avoided court because of overwhelming, but well- deserved, support from their community. It's hard to forget George Bailey (Jimmy Stewart) running down the snowy streets of Bedford Falls exuberantly shouting "Merry Christmas, you wonderful old Building and Loan!" ;)

Whatcha think? Should I just shut my pie-hole? Lotsa money to be made if attorneys can defraud clients with impunity just by doing business as professional assocations.

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

No Word Yet From Fla. Attorney General and Gubernatorial Candidate Charlie Crist RE: Selective Enforcement of Deceptive and Unfair Trade Practices Act

2006-02-02T10:27:00.000-08:00

TALLAHASSEE, FLA---Selective enforcement of Florida's Deceptive and Unfair Trade Practices Act when well-connected law firms are involved is gaining increasing attention this election year. By email dated Jan. 28, 2006, I asked Florida Attorney General and gubernatorial candidate Charlie Crist to explain for voters what his office's position is concerning this issue.

If you've read previous posts here, you know I'm a lawyer -- please don't hate me for it! ;) Crist’s office failed to investigate my reports of a well-connected law firm's widescale misappropriation of its clients' funds. I was employed by the The Law Offices of Eddie Farah in 2004 when I discovered, The firm was frequently 'padding' costs charged to personal injury clients by $300 or more per case and had been doing so for several years. It overcharged hundreds of unsuspecting clients and the combined misappropriated funds are estimated at several hundred thousand dollars.

According to the firm's web site, it is now known as the Law Offices of Farah & Farah, P.A. The principals in the firm are Eddie Farah and his brother, Charlie E. Farah.

I have yet to receive any response whatsoever to my latest inquiry to Crist. Maybe he just has no explanation for his office's obvious inaction despite having been provided with ample documentation of the law firm/professional association's overcharging practices. I can only guess since he hasn't responded. Seems like we Florida voters deserve more, particularly from a man who aspires to become our next State Governor.

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

More Telling Letters to The Florida Bar Concerning a Law Firm's Widescale Overcharging Practices

2006-01-31T20:44:00.000-08:00

JACKSONVILLE, FLA---See below for a couple of the more telling letters I submitted to The Florida Bar in Sept. and Oct. 2005 concerning The Law Offices of Eddie Farah's widescale misappropriation of client funds. According to the firm's web site, it is now known as the Law Offices of Farah & Farah, P.A.

My Sept. 6, 2005 letter and Oct. 31, 2005 letters to The Florida Bar's Chief Branch Discipline Counsel, Donald Spangler, Esq., provide ample information concerning the firm's overcharging practices.

There was a time I would have found it hard to believe The Florida Bar would just sweep such information under the rug, but that seems to be what occurred. I've repeatedly asked Spangler to explain the Bar's lack of any meaningful investigation but he has yet to do so. Political cronyism in action perhaps.

We have IT developers to thank for making it possible to share information and documentation on the web. Technology has really come a long way in the last decade or so. When I was a kid, we were lucky to receive a half dozen TV stations using 'rabbit ear' antennas and I was enthralled by my citizens band (CB) radio's range of a couple miles at best. Now we can communicate worldwide through cyberspace. Truly amazing developments in a relatively short period of time. I can't wait for quality 'Dick Tracy' style wrist-videophones to come out. I'm a gadget-guy at heart.

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

Fla. Attorney General and 2006 Gubernatorial Candidate Charlie Crist's Views Sought on Selective Enforcement of Deceptive & Unfair Trade Practices Act

2006-01-28T06:56:00.000-08:00

TALLAHASSEE, FLA---Florida Attorney General and gubernatorial candidate Charlie Crist has been asked for his views on selective enforcement of Florida's Deceptive and Unfair Trade Practices Act where well-connected law firms are concerned.

Crist announced on Dec. 6, 2005 that his office sued two Palm Beach County men for unfair and deceptive trade practices stemming from allegations that their cabinet and countertop business took customers' deposits but failed to provide the requested items. Crist's complaint alleges the two men never delivered promised services. Affidavits from consumers reportedly reflect that victims were cheated out of more than $175,000 in deposits. Crist's office reportedly maintains the two Palm Beach County men are being sued under Florida's Deceptive and Unfair Trade Practices Act, which allows a penalty of $10,000 per violation, or $15,000 if the victim is a senior citizen or disabled adult.

In sharp contrast, Crist's office failed to even investigate reports of a well-connected Jacksonville law firm's widescale misappropriation of clients' funds. I am an attorney who was employed by FARAH, FARAH & ABBOTT, P.A. (a/k/a The Law Offices of Eddie Farah) in 2004 when I discovered it was frequently 'padding' costs charged to personal injury clients by $300 or more per case and had been doing so for several years. It overcharged hundreds of unsuspecting clients and the combined misappropriated funds are estimated at several hundred thousand dollars.

According to the firm's web site, it is now known as the Law Offices of Farah & Farah, P.A. The principals in the firm are Eddie Farah and his brother, Charlie E. Farah.

The law firm practiced as a professional association ("P.A."), an authorized business entity under The Rules Regulating The Florida Bar. Florida Bar Rule 4-8.6(a) specifically provides, "Authorized Business Entities. Lawyers may practice law in the form of professional service corporations, professional limited liability companies, sole proprietorships, general partnerships, or limited liability partnerships organized or qualified under applicable law. Such forms of practice are authorized business entities under these rules."

There are many reasons attorneys choose to form professional associations for their legal practices. The owners of a professional association are called shareholders and ordinarily do not have personal liability for liabilities that arise in the ordinary course of business or from the malpractice of other attorneys at the law firm. This is one of the major benefits of operating a law practice as a professional association.

My Jan. 10, 2005 letter to Crist's office reported The Law Offices of Eddie Farah's repeated acts of consumer theft/fraud in the years 2002 through 2004. That letter included supporting documentation from ten cases in which the firm grossly overcharged clients. The letter emphasized, “Given the frequency and duration of [the firm’s] overcharging practice, many clients and considerable sums of money are involved in these matters."

Crist's office responded by letter dated Jan. 24, 2005, simply identifying The Florida Bar as the agency responsible for reviewing grievances against Florida lawyers. That letter gave no reason for his office's failure to investigate the offenses being reported as committed by the firm itself, a professional association. I am aware of no legal authority exempting law firms operating as professional associations from being investigated and, if appropriate, prosecuted under Florida's Deceptive and Unfair Trade Practices Act.

My concerns over The Law Offices of Eddie Farah's overcharging practices had already been reported to The Florida Bar by letter dated Sept. 28, 2004 to Donald M. Spangler, Esq., Chief Branch Discipline Counsel. Supporting documentation of the firm's overcharging practices was also provided. To my surprise, a full year went by with no contact from anyone on behalf of The Florida Bar to investigate the reported widescale fraud and misappropriation of clients' funds by The Law Offices of Eddie Farah. Not a single inquiry from The Florida Bar by letter, email or telephone.

I followed up with Spangler by email dated Sept. 1, 2005, letter dated Sept. 6, 2005 and email dated Oct. 25, 2005. By email dated Oct. 27, 2005, Spangler rather succinctly responded, "The file to which you refer was closed. The grievance committee considered the matter after investigation and an audit by the bar staff auditor, and found there was no probable cause to pursue disciplinary proceedings. They did elect to send a letter of advice to the firm."

According to The Florida Bar's web site, "The Florida Bar has an important role in the regulation of lawyer misconduct. A complaint of unprofessional conduct against a Florida Bar member is a serious matter. The processing and investigation of inquiries and complaints are a basic responsibility of the Bar as mandated by the Florida Supreme Court. The Bar seeks to protect the public from unethical lawyers."

It's difficult to fathom how The Florida Bar's grievance committee could reach an informed decision concerning probable cause to pursue disciplinary proceedings without ever even contacting the person reporting the misconduct as part of its investigation.

Questioning the thoroughness of the grievance committee's investigation and audit by the staff auditor, I sent a public records request to The Florida Bar for its complete file. It was only after repeated follow up requests that the Bar finally complied and produced the records. Unfortunately, the records produced offer no clues as to the basis for the grievance committee's finding of no probable cause for disciplinary proceedings. There are no indications any Bar investigators even contacted any of the witnesses I identified by name. Even the grievance committee's Nov. 8, 2005 Notice of No Probable Cause and Letter of Advice fails to explain the basis for its finding.

It's undisputed The Law Offices of Eddie Farah overcharged many clients by substantial sums. Attorney John A. Weiss, Esq. of Tallahassee represented the firm's principals, attorneys and brothers Eddie and Chuck Farah, before the Bar. Weiss admitted the firm's overcharges in a Sept. 22, 2005 letter to The Bar stating,

"As an aside, I would advise you that the firm has refunded in excess of $120,000.00 ... to those clients who were inadvertently overcharged for costs. Approximately $10,000.00 remains undisbursed because the firm, and the private investigator it subsequently hired, could not find the individuals."

That certainly sounds like a lot of money to be 'inadvertently' overcharged. The firm would have to overcharge 400 clients by $300 each to reach $120,000. Even The Florida Bar's own audit of the firm's trust account confirmed $130,000 in overcharges and a lack of substantial compliance with Bar rules governing trust acounts in the years 2002 through 2004.

According to a Jan. 6, 2006 letter from Spangler, "The Florida Bar cannot impose disciplinary action against a law firm, only against individual lawyers." This case demonstrates a dangerous loophole unscrupulous attorneys can easily exploit to the public’s detriment. If law firms themselves aren't subject to disciplinary action by The Florida Bar, why won't Attorney General Crist's office investigate a professional assocation's documented overcharging practices under Florida's Deceptive and Unfair Trade Practices Act? Is it because the professional association in question just happens to be a law firm rather than some other business?

It's been over eighteen months since The Law Offices of Eddie Farah's overcharging practices were reported to The Florida Bar and to Crist's office. Someone must be responsible for protecting clients defrauded by law firms and the public needs to know who that is. If it's not The Florida Bar or the Florida Attorney General's Office, who the heck is it?

Selective enforcement of Florida's Deceptive and Unfair Trade Practices Act when well-connected law firms are involved is gaining increasing attention. By email dated Jan. 28, 2006, I asked Crist to explain for voters what his office's position is concerning this issue. No response has been forthcoming.

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

Examples of The Law Offices of Eddie Farah's Overcharging Activities Averaging Over $300 Per Client

2006-01-26T16:56:00.000-08:00

JACKSONVILLE, FLA---These ten examples are just a small sampling of the many clients The Law Offices of Eddie Farah overcharged over a several year period. The combined misappropriated funds are estimated at several hundred thousand dollars. See full report in The Palm Beach Times' Action Line section. According to the firm's web site, it is now known as the Law Offices of Farah & Farah, P.A.

Example #1: $300 overcharge

Example #2: $293 overcharge

Example #3: $300 overcharge

Example #4: $310 overcharge

Example #5: $303 overcharge

Example #6: $320 overcharge

Example #7: $320 overcharge

Example #8: $315.01 overcharge

Example #9: $312 overcharge

Example #10: $302.98 overcharge

If you believe you may be among those who were overcharged by FARAH, FARAH & ABBOTT, P.A. a/k/a The Law Offices of Eddie Farah, you are urged to immediately contact The Florida Bar at 850-561-5600.

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

Florida Attorney General Charlie Crist Fails to Investigate The Law Offices of Eddie Farah's Documented Overcharging Practices

2006-01-19T18:08:00.000-08:00

TALLAHASSEE, FLA---Florida Attorney General Charlie Crist announced Dec. 6, 2005 that his office sued two Palm Beach County men for unfair and deceptive trade practices stemming from allegations that their cabinet and countertop business took customers' deposits but failed to provide the requested items.

Crist's complaint alleges the two men never delivered promised services. Affidavits from consumers reportedly reflect that victims were cheated out of more than $175,000 in deposits. Crist’s office maintains the two Palm Beach County men are being sued under Florida's Deceptive and Unfair Trade Practices Act, which allows a penalty of $10,000 per violation, or $15,000 if the victim is a senior citizen or disabled adult.

In sharp contrast, Crist’s office refused to even investigate reports of a well connected law firm's widescale misappropriation of its clients' funds. I was employed as an attorney with FARAH, FARAH & ABBOTT, P.A. (a/k/a The Law Offices of Eddie Farah) in 2004 when I discovered the firm was frequently 'padding' costs charged to personal injury clients by $300 or more per case and had been doing so for several years. It overcharged hundreds of unsuspecting clients and the combined misappropriated funds are estimated at several hundred thousand dollars.

According to the firm's web site, it is now known as the Law Offices of Farah & Farah, P.A. The principals in the firm are Eddie Farah and his brother, Charlie E. Farah.

The law firm practiced as a professional association ("P.A."), an authorized business entity under The Rules Regulating The Florida Bar. Florida Bar Rule 4-8.6(a) specifically provides, "Authorized Business Entities. Lawyers may practice law in the form of professional service corporations, professional limited liability companies, sole proprietorships, general partnerships, or limited liability partnerships organized or qualified under applicable law. Such forms of practice are authorized business entities under these rules."

There are many reasons attorneys choose to form professional associations for their legal practices. The owners of a professional association are called shareholders and ordinarily do not have personal liability for liabilities that arise in the ordinary course of business or from the malpractice of other attorneys at the law firm. This is one of the major benefits of operating a law practice as a professional association.

My Jan. 10, 2005 letter to Crist’s office reported the law firm’s repeated acts of consumer theft/fraud in the years 2002 through 2004 and emphasized, “Given the frequency and duration of [the firm’s] overcharging practice, many clients and considerable sums of money are involved in these matters." Crist’s office responded by
letter dated Jan. 24, 2005, simply identifying The Florida Bar as the agency responsible for reviewing grievances against Florida lawyers.

I know of no legal authority exempting law firms operating as professional associations from being prosecuted under Florida's Deceptive and Unfair Trade Practices Act. My concerns over the firm's illicit overcharging practices had already been reported to The Florida Bar in Sept. 2004 by
letter to Donald M. Spangler, Esq., Chief Branch Discipline Counsel. Surprisingly, a full year went by with no contact from any representatives of The Florida Bar to investigate the reported widescale fraud and misappropriation of clients' funds by The Law Offices of Eddie Farah. Not a single inquiry from The Florida Bar by letter, email or telephone.

When I followed up with The Florida Bar in late 2005 concerning the firm’s overcharging practices, I received a succinct
Oct. 27, 2005 email from Spangler stating, "The file to which you refer was closed. The grievance committee considered the matter after investigation and an audit by the Bar Staff Auditor, and found there was no probable cause to pursue disciplinary proceedings. They did elect to send a letter of advice to the firm."

The fact The Law Offices of Eddie Farah overcharged clients by substantial sums is not in dispute. Attorney John A. Weiss, Esq. of Tallahassee represented the firm's principals, attorneys and brothers Eddie and Chuck Farah, before the Bar.
Weiss admitted in a Sept. 22, 2005 letter to The Bar that the firm overcharged clients stating,

"As an aside, I would advise you that the firm has refunded in excess of $120,000.00 ... to those clients who were inadvertently overcharged for costs. Approximately $10,000.00 remains undisbursed because the firm, and the private investigator it subsequently hired, could not find the individuals."

Even The Florida Bar's own audit of the firm's trust account confirmed $130,000 in overcharges and a lack of substantial compliance with Bar rules governing trust acounts in the years 2002 through 2004.

According to a Jan. 6, 2006 letter Spangler, "The Florida Bar cannot impose disciplinary action against a law firm, only against individual lawyers."

This is just one case pointing out the dangerous loophole unscrupulous legal practitioners exploit to the public’s detriment. If law firms aren't subject to disciplinary action by The Florida Bar, why won't Attorney General Crist investigate the professional assocation's admitted overcharging practices under Florida's Deceptive and Unfair Trade Practices Act?

Someone must take responsibility for protecting clients defrauded by law firms and the public needs to know who that is.

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

Florida Bar Audit Confirms The Law Offices of Eddie Farah Overcharged Clients By $130,000 But No Attorneys to Be Disciplined

2006-01-11T07:25:00.000-08:00

JACKSONVILLE, FLA---In early Jan. 2006, I again followed up on my public records request and finally received The Florida Bar's 4/13/05 Audit Report for Eddie E. Farah of The Law Offices of Eddie Farah. According to the firm's web site, it is now known as the Law Offices of Farah & Farah, P.A. The principals in the firm are Eddie Farah and his brother, Charlie E. Farah.

Certified Public Accountant and Certified Fraud Examiner James F. Wells prepared the report following his audit on Farah's trust account records and procedures for the period 2002 through 2004 to determine whether they complied with the requirements of the Florida Bar rules governing trust accounts. Wells' Audit Report noted,

"Administrative costs that were not substantiated by documentary evidence were charged on some settlement statements in personal injury cases. These administrative costs were in excess of the documented costs such as copies, faxes and postage. Rule 5-1.2(b)(4) requires documentary support for all disbursements from the trust account. These costs were not authorized by the clients."

In discussing corrective action taken, Wells stated,

"The firm reviewed client files and settlement statements to determine the specific clients that had been charged unsubstantiated administrative costs. Refunds totaling approximately $130,000, including interest, were issued to those clients."

Wells' Audit Report concluded,

"In my opinion, Mr. Farah's trust accounting records and procedures in connection with the documentation of costs paid from trust funds during the period from January 1, 2002 through December 31, 2004 were not in substantial compiance with The Florida Bar's rules governing trust accounts." (Emphasis supplied).

The records produced by The Florida Bar offer no clues to the basis for its grievance committee's finding of no probable cause for disciplinary proceedings. Cronyism seems to be the likely explanation.

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

Attorneys Admit The Law Offices of Eddie Farah Overcharged Clients By $130,000

2005-12-09T10:11:00.000-08:00

JACKSONVILLE, FLA---Public records reveal attorneys admit that the Florida law firm FARAH, FARAH & ABBOTT, P.A. a/k/a The Law Offices of Eddie Farah overcharged clients by substantial sums in the years 2002 through 2004.

According to the firm's web site, it is now known as the Law Offices of Farah & Farah, P.A. The principals in the firm are Eddie Farah and his brother, Charlie E. Farah.

I am an attorney who was employed by the firm in 2004 when I discovered it was regularly overcharging its personal injury clients. The firm was often 'padding' costs charged to clients by $300 or more per case and had been doing so for several years.

I reported my concerns over the firm's illicit overcharging practices in Sept. 2004 by letter to Donald M. Spangler, Esq., Chief Branch Discipline Counsel for The Florida Bar. A full year went by with no contact from any representatives of The Florida Bar to investigate the reported widescale fraud and misappropriation of clients' funds. I followed up with the Florida Bar in Sept. and Oct. 2005. By email dated Oct. 27, Spangler succinctly responded, "The file to which you refer was closed. The grievance committee considered the matter after investigation and an audit by the bar staff auditor, and found there was no probable cause to pursue disciplinary proceedings. They did elect to send a letter of advice to the firm."

Questioning the thoroughness the grievance committee's investigation as well as the audit by the Bar staff auditor, I followed up with Spangler requesting a copy of The Florida Bar's
complete file. Spangler responded by email on Oct. 28, 2005 saying, "Your request will be treated as a public records request and you will be informed by the appropriate individual regarding the cost of the documents you are requesting."

After additional follow up, I finally received a response to my public records request on Dec. 7, 2005 but the records were obviously incomplete. With the exception of nine pages, the records produced were limited to documents I had personally sent to The Florida Bar. Most notably absent from the records were the Grievance Committee's file and the results from the audit of the firm's trust account that was apparently scheduled for 3/2/05. It appeared the audit took place since the Farahs' attorney, John A. Weiss, Esq., stated in a 9/22/05 letter to The Florida Bar,

"As an aside, I would advise you that the firm has refunded in excess of $120,000.00 ... to those clients who were inadvertently overcharged for costs. Approximately $10,000.00 remains undisbursed because the firm, and the private investigator it subsequently hired, could not find the individuals."

That certainly sounds like a lot of money to be 'inadvertently' overcharged. It would take overcharging 400 clients by $300 each to reach $120,000.

Copyright © 2006 by Jeffrey R. Hill. All rights reserved.

Special Commission Conducting Long Overdue Review of The Florida Bar's Disciplinary Process

2005-12-05T21:11:00.000-08:00

JACKSONVILLE, FLA---Sometimes, hopefully rarely, people are taken advantage of by someone they turned to when they were vulnerable and needed help. Deceived by someone they had every reason to believe they could trust. Violated by someone they should have been able to trust.

Discovery of such betrayal shakes our faith. Even more so when it occurs within the sanctity of an attorney-client relationship. And still more when the duplicity becomes so commonplace at a law firm that it's simply dismissed as a routine business practice.

The public relies upon The Florida Bar to fulfill its responsibilities to process and investigate inquiries and complaints of lawyer misconduct as mandated by the Florida Supreme Court. Recent events demonstrate how The Florida Bar's role in regulating lawyer misconduct falls far short of meeting the public's needs.

It's been over a year since I resigned from my job as an attorney with FARAH, FARAH & ABBOTT, P.A. (a/k/a The Law Offices of Eddie Farah) in Jacksonville, Florida. According to the firm's web site, it is now known as the Law Offices of Farah & Farah, P.A. The principals in the firm are Eddie Farah and his brother, Charlie E. Farah.

The underlying circumstances bring John Grisham's novels to mind, only without the mystery. In a nutshell, I discovered in 2004 that the law firm was regularly overcharging personal injury clients by subtantial sums. The firm was frequently 'padding' costs charged to clients by $300 or more per case and had been doing so for several years. Clients were being required to sign settlement statements certifying they agreed with the falsified figures before any portion of their settlement proceeds would be paid to them.

The firm's settlement statements and accounting records clearly document its overcharging practices. Hundreds of clients were overcharged in this manner and the combined misappropriated funds are estimated at several hundred thousand dollars.

Discovery of the firm's widescale overcharging practices created professional conflicts of interest requiring my immediate resignation. My resignation letter speaks for itself.

City of Jacksonville and State of Florida officials declined to investigate reports of the firm's overcharging practices, ostensibly because The Florida Bar has exclusive jurisdiction.

My Jan. 10, 2005 letter to the Office of Florida Attorney General Charlie Crist reported the firm's repeated acts of consumer theft/fraud. The Florida Attorney General’s Office responded by letter dated Jan. 24, 2005 identifying The Florida Bar as the agency responsible for reviewing grievances against Florida lawyers.

An Aug. 5, 2005 Complaint to the City of Jacksonville Division of Consumer Affairs also reported the firm's overcharging practices. An Aug. 29, 2005 email from Cecelia Jefferson, Division Chief of the City of Jacksonville Consumer Affairs Division, stated the complaint exceeded the scope of her office's authority, but suggested contacting both The Florida Bar and the Office of the Florida Attorney General. Division Chief Jefferson's email stated,

"...[T]he Office of the Attorney General for the State of Florida is the enforcing authority for Florida Statutes 501, Part II. This is the unfair and deceptive trade practices act and violations of that act carries penalties of $10,000.00 per violation."

Agreeing with Jefferson's assessment, I sent a copy of this Aug. 29, 2005 email to Attorney General Charlie Crist again requesting that he initiate an investigation into the firm's overcharging practices if he considered it appropriate to do so. I've heard nothing further from Crist's office since that time.

According to The Florida Bar's web site,

"The Florida Bar has an important role in the regulation of lawyer misconduct. A complaint of unprofessional conduct against a Florida Bar member is a serious matter. The processing and investigation of inquiries and complaints are a basic responsibility of the Bar as mandated by the Florida Supreme Court. The Bar seeks to protect the public from unethical lawyers."

I made a written report of my concerns over the firm's overcharging practices to Donald M. Spangler, Esq., Chief Branch Discipline Counsel for The Florida Bar back in Sept. 2004. The letter included evidence from ten cases in which the firm overcharged clients and pointed out,

"The documentation is being provided in only ten (10) cases, but the practice of overcharging clients for costs in this manner is widespread at the firm. There are likely hundreds and perhaps thousands of files in which the firm has overcharged clients for costs in this manner without their knowledge."

I telephoned Spangler a few days later and confirmed he received the letter and the enclosed supporting documentation. Surprisingly, a full year went by with no representatives of The Florida Bar contacting me to investigate the reported fraud and misappropriation of clients' funds. Not a single inquiry from The Florida Bar by letter, email or telephone.

I followed up with Spangler in Sept. and Oct. 2005 to provide The Florida Bar additional information uncovered since the initial Sept. 2004 complaint. By email dated Oct. 27, Spangler succinctly responded,

"The file to which you refer was closed. The grievance committee considered the matter after investigation and an audit by the Bar Staff Auditor, and found there was no probable cause to pursue disciplinary proceedings. They did elect to send a letter of advice to the firm."

It's difficult to fathom how The Florida Bar's grievance committee could reach an informed decision concerning probable cause to pursue disciplinary proceedings without contacting me as part of its investigation. Despite the egregiousness of the reported misconduct, I received no inquiries whatsoever from The Florida Bar. It's hard to have faith in a system that allows lawyer misconduct to go unacknowledged and uncorrected even after it's been identified, documented and reported.

I followed up in writing requesting a copy of The Florida Bar's file under The Public Records Act and inquiring about the scope of its 'investigation'. Plainly stated, justice hasn't been served and nobody seems too concerned about it. I've asked Spangler of The Flroida Bar,

"...[A]re you satisfied as Chief Branch Discipline Counsel for The Florida Bar that my allegations of misconduct by FARAH, FARAH & ABBOTT, P.A. have been adequately investigated and that no further action is necessary?"

I'm certainly not satisfied and am often asked whether cronyism is at the heart of The Florida Bar's failure to pursue disciplinary proceedings. While I hope cronyism did not come into play, The Florida Bar's role in investigating and regulating lawyer misconduct certainly seems badly in need of a major overhaul.

According to a Dec. 1, 2005 article in The Florida Bar News a first look at an "extensive review of the Florida Bar’s disciplinary process" was on the agenda for the Bar's Board of Governors' recent December 16 at Amelia Island. Bar President-elect and Board of Governors member Henry Matson Coxe III chairs the Special Commission on Lawyer Regulation. Coincidentally, Coxe's law office within walking distance of The Law Offices of Eddie Farah in Jacksonville. By email to Mr. Coxe on Dec. 5, 2005, I requested that the manner in which my complaint of misconduct was handled be included in the Board of Governor's "extensive review" of the Bar’s disciplinary process at at its Dec. 16 meeting. I have not heard anything from Coxe.

If you believe you may be among those overcharged by FARAH, FARAH & ABBOTT, P.A. a/k/a The Law Offices of Eddie Farah, you are urged you to immediately contact The Florida Bar at 850-561-5600. Hopefully, you'll make more progress than I've been able to over the last year.

Copyright © 2005 by Jeffrey R. Hill. All rights reserved.

Overhaul Needed of The Florida Bar's Role in Regulating Lawyer Misconduct

2005-11-22T15:41:00.000-08:00

JACKSONVILLE, FLA---Sometimes, hopefully rarely, people are victimized by those they turned to when they were vulnerable and needed help. Deceived by someone they had every reason to think they could trust -- someone they should have been able to trust.

Discovery of such betrayal shakes our faith. Even more so when it occurs within the sanctity of an attorney-client relationship. And still more so if the duplicity becomes so commonplace at a law firm that it's simply dismissed as a routine business practice.

I'm an attorney and was employed by FARAH, FARAH & ABBOTT, P.A. a/k/a The Law Offices of Eddie Farah in 2004 when I discovered it was regularly overcharging its personal injury clients. According to the firm's web site, it is now known as the Law Offices of Farah & Farah, P.A. The principals in the firm are Eddie Farah and his brother, Charlie E. Farah.

The firm was frequently 'padding' costs charged to clients by $300 or more per case and had been doing so for several years. Clients were required clients to sign settlement statements certifying they agreed with the falsified figures before any portion of their settlement proceeds would be paid to them. The firm's contingency fee contracts, accounting records and settlement statements clearly document its overcharging practices. Examples of the firm's overcharging practices are available here".

I resigned from the law firm in Oct. 2004 because its overcharging practices presented me with irreconcilable conflicts of interest as an attorney representing its clients. My resignation letter speaks for itself. In my professional judgment, the firm's clients must be informed of its practice of misappropriating funds from similarly situated clients. Without that information, clients cannot make informed decisions concerning the law firm they choose to entrust with their legal representation. On the other hand, disclosure of such information would expose my employer and its principals to risk of financial, professional and criminal sanctions.

The conflicts of interest were sufficiently urgent to forego giving advance notice of my resignation to The Law Offices of Eddie Farah. I couldn’t very well say, ‘Here’s two weeks notice of my resignation because you have been defrauding your clients and I’ve reported you to the State Bar.’ I didn’t think that would be a workable situation. What would I do for the two weeks, inform clients that the firm was defrauding other clients, or keep my mouth shut and violate my obligations to the clients?

City of Jacksonville and State of Florida officials declined to investigate reports of the law firm's overcharging practices, ostensibly because The Florida Bar has exclusive jurisdiction. On Jan. 10, 2005, I wrote to the Office of Florida Attorney General Charlie Crist and reported the firm's repeated acts of consumer theft/fraud. The Florida Attorney General’s Office responded by letter dated Jan. 24, 2005 identifying The Florida Bar as the agency responsible for reviewing grievances against Florida lawyers.

My concerns over the firm's overcharging practices had already been reported in Sept. 2004 by letter to Donald M. Spangler, Esq., Chief Branch Discipline Counsel for The Florida Bar. The letter included supporting documentation from ten cases in which the firm grossly overcharged clients and pointed out, “The documentation is being provided in only ten (10) cases, but the practice of overcharging clients for costs in this manner is widespread at the firm. There are likely hundreds and perhaps thousands of files in which the firm has overcharged clients for costs in this manner without their knowledge." I telephoned Spangler a few days later and confirmed the letter and documentation were received.

Surprisingly, a full year went by with no contact from any representatives of The Florida Bar to investigate the report of widescale fraud and misappropriation of clients' funds by The Law Offices of Eddie Farah. Despite the egregiousness of the reported misconduct, I received no inquiries whatsoever from The Florida Bar by letter, telephone or email.

I followed up with The Florida Bar in Sept. and Oct. 2005. By email dated Oct. 27, 2005, Spangler succinctly responded, "The file to which you refer was closed. The grievance committee considered the matter after investigation and an audit by the Bar Staff Auditor, and found there was no probable cause to pursue disciplinary proceedings. They did elect to send a letter of advice to the firm."

According to The Florida Bar's web site, "The Florida Bar has an important role in the regulation of lawyer misconduct. A complaint of unprofessional conduct against a Florida Bar member is a serious matter. The processing and investigation of inquiries and complaints are a basic responsibility of the Bar as mandated by the Florida Supreme Court. The Bar seeks to protect the public from unethical lawyers."

It's difficult to fathom how The Florida Bar's grievance committee could reach an informed decision concerning probable cause to pursue disciplinary proceedings without ever even contacting the person reporting the misconduct. I'm following up with The Florida Bar requesting a copy of its file and inquiring into the scope of its 'investigation'.

Why am I speaking out publicly about The Law Offices of Eddie Farah's overcharging practices? It’s been over a year since I first reported the firm’s fraudulent overcharging practices. It overcharged hundreds of unsuspecting clients over a period spanning several years and the combined misappropriated funds are estimated at several hundred thousand dollars. Defrauded clients remain unaware they are owed return of their money. The Florida Attorney General's Office deferred to The Florida Bar to investigate the reported fraud. The Florida Bar in turn closed its file without even contacting the person reporting the overcharging practices. It's hard to have faith in a system that allows such attorney misconduct to go unacknowledged and uncorrected even after it's been identified, documented and reported. Plainly stated, justice hasn’t been served and nobody seems too concerned about it.

Who protects the clients who were overcharged by The Law Offices of Eddie Farah. Of particular concern is my question to Spangler, "...[A]re you satisfied as Chief Branch Discipline Counsel for The Florida Bar that my allegations of misconduct by FARAH, FARAH & ABBOTT, P.A. have been adequately investigated and that no further action is necessary?"
I'm is certainly not satisfied. I’ve been a lawyer for over eighteen years and this experience almost makes me wonder if I’m naive in believing the misuse of client funds to be among the worst offenses a lawyer can commit. I'm often asked whether cronyism is at the heart of The Florida Bar's seemingly inadequate investigation. While I hope cronyism did not come into play, The Florida Bar's role in investigating and regulating lawyer misconduct seems badly in need of a major overhaul.

Copyright © 2005 by Jeffrey R. Hill. All rights reserved.