Articles Posted in White Collar Crime

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Draughon was admitted to the Florida Bar in 1987. In 1993, he formed NLMC to purchase property for $315,000, and lease it to a client. The seller, Onusic, received a $7,500 down payment and accepted a promissory note which required NLMC to make monthly payments. Onusic signed the deed with the understanding that Draughon would hold the deed in escrow and not record it until she received full payment. In 1997, Draughon recorded the deed. In 2001, Draughon transferred the property from NLMC to himself, took out a mortgage of $274,975, and used the money to pay personal tax liabilities; none of the funds were used to pay the $110,000 owed Onusic. In 2003 Onusic filed suit, but Draughon filed for bankruptcy. The bankruptcy court found actual intent to defraud. A referee recommended that Draughon be found guilty of violating Bar Rule 3-4.3: commission by a lawyer of any act that is unlawful or contrary to honesty and justice, whether committed in the course of the attorney’s relations as an attorney or otherwise. The referee recommended that Draughon be found not guilty of violating Rule 4-4.3(a) concerning dealings with persons not represented by counsel, and recommended public reprimand. The supreme court imposed a one-year suspension. View "FL Bar v. Draughon" on Justia Law