Attorney Grievance Commission v. Stern

BATTAGLIA, J. Gary F. Stern, Respondent, was admitted to the Bar of this Court on June 23, 1994. On April 16, 2010, the Attorney Grievance Commission (“Petitioner” or “Bar Counsel”), acting pursuant to Maryland Rule 16-751(a), 1 filed a “Petition for Disciplinary or Remedial Action” against Stern, charging numerous violations of the Maryland Rules of Professional Conduct (“Rule”), including Rule 1.2(a) (Scope of Representation), 2 ⁵²⁸ Rule 1.15 (Safekeeping Property), 3 Rule 1.16(d), 4 Rule 8.1(b) ⁵²⁹ (Bar Admission and Disciplinary Matters), 5 Rules 8.4(b), (c), and (d) (Misconduct), 6 Section 10-306 of the Business Occupations and Professions Article, Maryland Code (2000, 2010 RepLVol.), 7 Rule 16-604 (Trust Account), 8 and Rule 16-609 (Prohibited Transactions). 9 ⁵³⁰ According to the “Petition for Disciplinary or Remedial Action,” Stern failed to pay a physical therapy provider approximately $45,000.00 in connection with his representation of nineteen clients in personal injury cases, although the requisite assignments and authorizations had been given; he also allegedly settled a personal injury claim on behalf of a client without the client’s knowledge or consent. This Court referred the matter to Judge Lawrence P. Fletcher-Hill of the Circuit Court for Baltimore City for hearing, pursuant to Rule 16-757. 10 ⁵³¹ On June 8, 2010, Stern was personally served with process, to which was appended the Petition filed by Bar Counsel. Stern filed an “Answer to Petition” on June 24, 2010.

When Judge Fletcher-Hill held a hearing on the Petition on October 1, 2010, however, Stern neither attended nor participated, although he had been duly notified. After an evidentiary hearing, Judge Fletcher-Hill issued Findings of Fact and Conclusions of Law in which he found, by clear and convincing evidence, that Stern’s conduct constituted violations of Rules 1.2(a), 1.15(d), 8.4(c), and (d), 16-604, 16-609(c), and Section 10-306 of the Business Occupations and Professions Article. The initial findings concerned Stern’s background, as well as his arrangement with C.J.B. Therapy Centers, Inc. (“C.J.B.”), whereby C.J.B., after having provided therapy services, would not bill Stern’s clients directly with the expectation that Stern would pay C.J.B. from his clients’ case recoveries: 1. Respondent Gary F. Stern was admitted to the bar of the Court of Appeals of Maryland on June 23,1994. 2.

Some of Mr. Stern’s clients with personal injury claims received physical therapy services from C.J.B. Therapy Centers, Inc. Respondent Stern had an arrangement with C.J.B. under which C.J.B. deferred billing the clients with the expectation that C.J.B. would be paid for its services by Mr. Stern directly from personal injury recoveries received by the clients. C.J.B. had similar arrangements with other attorneys in addition to Mr. Stern. ⁵³² 3. C.J.B.’s practice was to have patients with personal injury claims sign an “AUTHORIZATION AND ASSIGNMENT OF BENEFITS (LIEN) TO C.J.B. THERAPY CENTER.” Samples of this form were admitted at the hearing as Petitioner’s Exhibit 1. C.J.B.’s practice was to have the patient’s attorney also sign the Authorization and Assignment.

C.J.B. personnel initiated this process and sent the forms to the attorney for signature. 4. In the third paragraph of the Authorization and Assignment, the patient authorizes and directs insurance companies to make direct payments to C.J.B. for services rendered to the patient. That paragraph also contains the following sentence: I also authorize and direct my attorney to make prompt payment to C.J.B. Therapy Center any sums which may be due and owing from the proceeds of any settlement, judgment or insurance payment including services or supplies heretofore supplied and those supplied to the time of settlement, judgment or insurance payment. 5. The next paragraph of the Authorization and Assignment provides, in boldface: I, as the representing attorney, by also signing this authorization and Assignment of Benefits to C.J.B. Therapy Center agree to follow the aforementioned authorization and direction of my client to pay C.J.B. Therapy Center any sums due and owing from the proceeds of any settlement, judgment or insurance payments. 6.

The following eighteen patients signed C.J.B. Authorization and Assignment forms on the dates indicated: Sean P. Turner Gary Stern* Denise Brown* Elrea Spurr* Haile Stern Micah Tucker Dorothy Crowder Dennis Hall Collyn Riggs Anthony Hemphill May 20, 2008 May 20, 2008 May 22, 2008 May 22, 2008 undated June 24, 2008 June 28, 2008 July 14, 2008 July 15, 2008 July 24, 2008 ⁵³³ Johnny Moore Jr. Wesley Henderson Jr. Wesley Henderson III Clifford Johnson Antionette Ellis Tiffany Gordon David Blake Bryan Moore July 28, 2008 undated undated undated August 23, 2008 September 2, 2008 September 2,2008 September 2,2008 Wesley Henderson III is not identified as “III” on the Authorization and Assignment, but the Court infers that additional identifying information from other C.J.B. records admitted into evidence. The only Authorization and Assignment forms that were also signed by Mr. Stern as attorney are the forms for the three patients with asterisks after their names. On all of the other forms, the line for the attorney’s signature is blank. C.J.B. understood that all of these patients were represented by Mr. Stern. 7.

As listed, Mr. Stern was also a patient at C.J.B. He signed his own Authorization and Assignment as both patient and attorney. Denise Brown, Elrea Spurr, and Haile Stern are all either family members of Mr. Stern or individuals who were involved in the same accident with Mr. Stern. 8. An additional patient, Darion Johnson, received services from C.J.B., but the Commission did not provide an Authorization and Assignment form signed by Darion Johnson. C.J.B. understood that Darion Johnson was represented by Mr. Stern.

Judge Fletcher-Hill found that Stern failed to remit payment to C.J.B. for services rendered to sixteen of Stern’s nineteen clients, despite having received monies in connection with the clients’ personal injury recoveries, referring to the testimony of Spencer Arrington, owner of C.J.B. Therapy Centers, Inc.: 9. Each of the nineteen patients identified above received services from C.J.B. in 2008. For each of the nineteen patients, C.J.B. sent an invoice or invoices directly to Mr. Stern itemizing the costs of the services provided to that patient. The total amount billed by C.J.B. for all nineteen patients is $74,605.68. ⁵³⁴ 10.

C.J.B. subsequently provided Mr. Stern with a summary of the balance owed for the nineteen patients. CJ.B.’s owner, Spencer Arrington, did not provide any explanation of these reduced amounts for some of the patients. Specifically, he did not testify to any partial payments made by Mr. Stern or from other sources. For all nineteen patients, the balance due shown on the summary is $44,465.59. 11.

With respect to Mr. Stern and the three patients who are either his family members or individuals involved in the same accident with him, Mr. Arrington testified that he reached an agreement with Mr. Stern to reduce the total amount due for those four patients to $6,000. Mr. Arrington testified that Mr. Stern paid $3,000 pursuant to that compromise, but that Mr. Stern never paid the remaining $3,000 due. 12. With respect to the other fifteen patients, Mr. Stern never paid the amounts listed as due on the summary. 13. The total amounts billed by C.J.B. for the nineteen patients and the amounts remaining unpaid are as follows: Patient Total Amount Billed Amount Remaining Due on Summary Amount Remaining Due Following Compromise Involving Four Patients Sean P. Turner $ 5,162.52 $ 2,846.41 Gary Stern $ 4,632.52 $ 3,252.37 $ 3,000.00 Denise Brown $ 4,479.91 $ 480.72 Elrea Spurr $ 3,361.68 $ 1,052.61 Haile Stern $ 4,568.14 $ 2,834.47 Mieah Tucker $ 4,162.83 $ 349.52 Dorothy Crowder $ 4,310.00 $ 2,220.00 Dennis Hall $ 3,713.14 $ 1,324.15 Collyn Riggs $ 3,984.91 $ 1,808.41 Anthony Hemphill $ 2,711.99 $ 2,711.99 Johnny Moore Jr. $ 3,763.45 $ 3,330.65 ⁵³⁵ Wesley Henderson Jr. $ 3,891.37 $ 1,391.37 Wesley Henderson III $ 3,904.60 $ 1,404.60 Clifford Johnson $ 4,106.37 $ 4,106.37 Antionette Ellis $ 2,555.53 $ 2,555.53 Tiffany Gordon $ 2,565.53 $ 2,565.53 David Blake $ 4,357.83 $ 1,857.53 Bryan Moore $ 4,676.99 $ 4,676.99 Totals $74,605.68 $44,465.59 14.

The Commission introduced into evidence bank records produced under subpoena and certified by a custodian of records from Bank of America N.A. to be bank statements, debits, and credits from May 2008 to May 2010 for two accounts: “Law Office of Gary F. Stern Escrow Account,” account number ending in 6211, and “Law Office of Gary F. Stern General Business Account,” account number ending in 7719. These bank records amount to several hundred pages. The Court has examined them carefully to identify all debit or credit items that might relate to any of the nineteen clients identified in the Commission’s claims. 15. With respect to Sean P. Turner, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 9/11/08 Gen.

Bus. deposit USAA 37.60 Payment under PIP for Advance Radiology 5/12/08 9/15/08 Escrow deposit USAA 1,901.53 Payment for Medical Services, CJB, 5/23/08-7/18/08 9/23/08 Escrow deposit Travelers 11,000.00 9/24/08 Escrow check CJB Therapy 1,901.00 12/1/09 Escrow check Home & Marine 11,000.00 Sean Turner UJA8198-006 12/23/09 Escrow check Sean Turner 37.60 X-Ray 16. As summarized above, C.J.B. rendered invoices totaling $5,126.52 for services provided to Sean P. Turner, and ⁵³⁶ Mr. Arrington testified that $2,846.41 remains due for those services. This is consistent with, though not exactly consistent with, the payment of $1,901.00 made by Mr. Stern to C.J.B. on behalf of Mr. Turner. Mr. Stern received settlement proceeds for Mr. Turner from which the balance due to C.J.B. should have been paid.

Ultimately, for the reasons stated in the findings below, Mr. Stern refunded the settlement amount for Mr. Turner to Travelers Insurance. Thus, although Mr. Stern failed to deliver funds promptly to C.J.B. on behalf of Mr. Turner, he has not retained any amount due to C.J.B. on behalf of Mr. Turner. 17. With respect to Gary F. Stern, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 5/29/08 Gen. Bus. deposit State Farm 1,574.71 Claim No. 20-6390-736; Insured Jacks, Tayron 6/19/08 Gen.

Bus. deposit MAIF 1,125.62 Claim No. T936712; Insured Gary Francis Stern 6/30/08 Gen. Bus. deposit MAIF 1,067.15 Claim No. T936712; Insured Gary Francis Stern 7/10/08 Escrow check C JB Therapy 749.70 Client or patient not identified. This item could relate to another client. 8/18/08 Gen. Bus. deposit State Farm 9,000.00 Claim No. 20-6390-736; Insured Jacks, Tayron 4/2/09 Gen.

Bus. deposit MAIF 5,559.85 Claim No. T955709; Insured Gary Francis Stern In addition to these items, the bank records contain numerous items payable to Mr. Stern from both accounts. Although most of those items are not identified as fees earned, reimbursement for expenses, or any other purpose, the Court infers that those other items are not related to Mr. Stern’s individual claim based on a personal injury. 18. As summarized above, C.J.B. rendered invoices totaling $4,632.52 for services provided to Gary F. Stern, and ⁵³⁷ Mr. Arrington testified that $3,252.37 remained due for those services before C.J.B. reached a compromise with Mr. Stern concerning services rendered to Gary Stern, Denise Brown, Elrea Spurr, and Haile Stern. This is consistent with, though not exactly consistent with, the July 10, 2008 payment of $749.70 made to C.J.B. even assuming that payment was made on behalf of Mr. Stern.

Mr. Stem received settlement proceeds for his own claim from which the balance due to C.J.B. should have been paid. 19. With respect to Denise Brown, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 7/7/08 Gen. Bus. deposit MAIF 2,500.00 Claim No. T936712; Insured Gary Francis Stern 7/10/08 Gen. Bus. check CJB Therapy 999.19 Denise Brown 8/18/08 Escrow deposit State Farm 10,000.00 3/20/09 Gen.

Bus. cheek Denise Brown 500.00 5/2/09 Escrow check Denise Brown 2,000.00 20. As summarized above, C.J.B. rendered invoices totaling $4,479.91 for services provided to Denise Brown, and Mr. Arrington testified that $480.72 remained due for those services before C.J.B. reached a compromise with Mr. Stern concerning services rendered to Gary Stern, Denise Brown, Elrea Spurr, and Haile Stern. This is consistent with, though not exactly consistent with, the July 10, 2008 payment of $999.19 made to C.J.B. on behalf of Ms. Brown. Mr. Stern received settlement proceeds for Ms. Brown from which the balance due to C.J.B. should have been paid. 21.

With respect to Elrea Spurr, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 5/2/08 Gen. Bus. check Elrea Spurr 400.00 5/9/08 Escrow check Elrea Spurr 300.00 ⁵³⁸ 5/13/08 Escrow check Elrea Spurr 350.00 5/30/08 Gen. Bus. check Elrea Spurr 350.00 6/6/06 Gen. Bus. check Elrea Spurr 350.00 Dated 2006 but actually 2008 6/27/08 Escrow check Elrea Spurr 350.00 11/7/08 Escrow check Elrea Spurr 1,057.00 11/12/08 Gen.

Bus. check Elrea Spurr 360.00 11/18/08 Gen. Bus. check Elrea Spurr 500.00 Memo line: Idrissa Diallo 12/11/08 Gen. Bus. check Elrea Spurr 350.00 1/9/09 Gen. Bus. cheek Elrea Spurr 400.00 1/15/09 Gen.

Bus. check Elrea Spurr 350.00 2/11/09 Escrow check Elrea Spurr 360.00 2/23/09 Gen. Bus. check Elrea Spurr 350.00 3/10/09 Gen. Bus. check Elrea Spurr 355.00 Memo line: Keith In 3/20/09 Escrow check Creative Pinancing Solutions 1,800.00 Memo line: Elrea Spurr 4/17/09 Gen. Bus. check Elrea Spurr 400.00 6/9/09 Gen.

Bus. check Elrea Spurr 350.00 8/14/09 Gen. Bus. check Elrea Spurr 800.00 9/9/09 Gen. Bus. cheek Elrea Spurr 350.00 10/13/09 Gen. Bus. cheek Elrea Spurr 350.00 11/11/09 Escrow check Elrea Spurr 400.00 11/24/09 Escrow check Elrea Spurr 500.00 12/2/09 Escrow check Elrea Spurr 500.00 12/9/09 Gen.

Bus. check Elrea Spurr 400.00 12/10/09 Gen. Bus. check Elrea Spurr 350.00 12/15/09 Gen. Bus. deposit Jack B. Turner 150.00 Check payable to Elrea Spurr 12/18/09 Escrow check Elrea Spurr 400.00 1/27/10 Escrow check Elrea Spurr 300.00 As stated above, there was evidence that Ms. Spurr is either related to or was involved in the same accident with Mr. ⁵³⁹ Stern. The pattern of checks to Ms. Spurr suggests that Ms. Spurr works or worked for Mr. Stern in some capacity and that most or all of these items are not related to any personal injury claim she had. 22.

As summarized above, C.J.B. rendered invoices totaling $3,361.68 for services provided to Elrea Spurr, and Mr. Arrington testified that $1,052.61 remained due for those services before C.J.B. reached a compromise with Mr. Stern concerning services rendered to Gary Stern, Denise Brown, Elrea Spurr, and Haile Stern. The bank records do not indicate any payment made to C.J.B. on behalf of Ms. Spurr. The bank records also do not indicate that Mr. Stern received settlement proceeds for Ms. Spurr. Thus, there is insufficient evidence to conclude that Mr. Stern received and retained any settlement proceeds for Ms. Spurr from which the balance due to C.J.B. should have been paid. 23.

With respect to Haile Stern, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 7/28/08 Escrow deposit MAIF 1,218.16 Gary Francis Stern— “insured” 8/18/08 Escrow deposit State Farm 10/27/09 Escrow cheek Haile Stern 1,885.60 Poly Disco Event 12/4/09 Gen. Bus. cheek Haile Stern 500.00 Your Best Event^Poly Disco 4/2/10 Escrow deposit Nationwide 6,000.00 8/30/09 date of loss 4/17/10 Gen. Bus. check Zion Health 185.00 Med Tech Haile Stern 5/3/10 Escrow deposit Nationwide 3,500.00 8/30/09 date of loss As stated above, there was evidence that Ms. Stern either is related to or was involved in the same accident with Mr. Stern. Based on either the memo lines on the items or the identification of items with a later date of loss, the Court infers that only the first two listed items related to the personal injury claim resulting from injuries in 2008 for which Ms. Stern was treated by C.J.B. ⁵⁴⁰ 24.

As summarized above, C.J.B. rendered invoices totaling $4,568.14 for services provided to Haile Stern, and Mr. Arrington testified that $2,834.47 remained due for those services before C.J.B. reached a compromise with Mr. Stern concerning services rendered to Gary Stern, Denise Brown, Elrea Spurr, and Haile Stern. The bank records do not indicate any payment made to C.J.B. on behalf of Ms. Stern. Mr. Stern received settlement proceeds for Ms. Stern from which the balance due to C.J.B. should have been paid. 25. With respect to Micah Tucker, the bank records show the following transactions: Date Account Type Prom (deposit) or To (check) Amount Note 6/30/08 Gen.

Bus. deposit Mayor & City Council of Baltimore 1,222.00 8/25/08 Escrow check Micah Tucker 1,000.00 9/11/08 Gen. Bus. deposit MAIF 207.35 Insured Johnny Moore Jr. 11/6/08 Escrow deposit UHI Claims Account 7,000.00 Full & Final Settlement 5/3/09 Escrow check Micah Tucker 3,000.00 26. As summarized above, C.J.B. rendered invoices totaling $4,162.83 for services provided to Micah Tucker, and Mr. Arrington testified that $349.52 remains due for those services. The bank records do not indicate any payment made to C.J.B. on behalf of Mr. Tucker.

Mr. Stern received settlement proceeds for Mr. Tucker from which the balance due to C.J.B. should have been paid. 27. With respect to Dorothy Crowder, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 8/13/08 Escrow deposit Gallagher Basset Services Inc. for Veolia Transp. Inc. 1,460.00 8/18/08 Escrow check CJB Therapy 1,050.00 ⁵⁴¹ 8/27/08 Gen. Bus. check UMMS 31.21 Dorothy Crowder 2008-115785 9/10/08 Gen.

Bus. check UMMS 10.00 Copy of Bill 1001668727 Dorothy Crowder 9/15/08 Escrow deposit Gallagher Bassett Services Inc. for Veolia Transp. Inc. 1,040.00 “Crowder” but same claim number as 8/13/08 item 9/24/08 Escrow check CJB Therapy 1,040.00 11/18/08 Escrow deposit Ohio Casualty 13,000.00 BI Settlement 11/24/08 Escrow cheek Dorothy Crowder 6,660.46 8/19/09 Escrow cheek Dr. Kenneth Lippman 265.00 Dorothy Crowder 28. As summarized above, C.J.B. rendered invoices totaling $4,310.00 for services provided to Dorothy Crowder, and Mr. Arrington testified that $2,220.00 remains due for those services. This is exactly consistent with the payments of $1,050.00 and $1,040.00 made to C.J.B. on behalf of Ms. Crowder.

Mr. Stern received settlement proceeds for Ms. Crowder from which the balance due to C.J.B. should have been paid. 29. With respect to Dennis Hall, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 9/17/08 Gen. Bus. deposit GEICO 111.01 PIP 7/13/08-7/14/08 10/10/08 Escrow deposit GEICO 7,000.00 Uninsured motorist coverage, full & final settlement 10/20/08 Escrow cheek Dennis Hall 3,836.67 Auto Accident 11/30/09 Escrow deposit GEICO 4,200.00 8/9/09 accident 12/11/09 Escrow check Dennis Hall 2,095.00 Based on the identification of the November 30, 2009 item with a later date of loss, the Court infers that only the first three listed items relate to the personal injury claim resulting from injuries in 2008 for which Mr. Hall was treated by C.J.B. ⁵⁴² 80. As summarized above, C.J.B. rendered invoices totaling $3,713.14 for services provided to Dennis Hall, and Mr. Arrington testified that $1,324.15 remains due for those services.

The bank records do not indicate any payment made to C.J.B. on behalf of Mr. Hall. Mr. Stern received settlement proceeds for Mr. Hall from which the balance due to C.J.B. should have been paid. 31. With respect to Collyn Riggs, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 9/17/08 Gen. Bus. deposit GEICO 371.50 PIP 7/13/08 10/10/08 Escrow deposit GEICO 8,200.00 Uninsured motorist coverage, full and final settlement 10/20/08 Escrow check Collyn Riggs 4,636.67 Auto Accident 11/30/09 Escrow deposit GEICO 2,500.00 As parent of Nicholas Davis, 8/9/09 accident 11/30/09 Escrow deposit GEICO 4,300.00 Direct payment to Riggs, 8/9/09 accident 12/11/09 Escrow check Collyn Riggs 5,683.67 Memo line: Collyn Riggs—2,686.67; Wesley Henderson III—1,528.33; Nicholas Davis—1,486.67 Based on the identification of the November 30, 2009 items with a later date of loss, the Court infers that only the first three listed items relate to the personal injury claim resulting from injuries in 2008 for which Mr. or Ms. Riggs was treated by C.J.B. 32.

As summarized above, C.J.B. rendered invoices totaling $3,984.91 for services provided to Collyn Riggs, and Mr. Arrington testified that $1,808.41 remains due for those services. The bank records do not indicate any payment made to C.J.B. on behalf of Mr. or Ms. Riggs. Mr. Stern received settlement proceeds for Mr. or Ms. Riggs from which the balance due to C.J.B. should have been paid. 33. With respect to Anthony Hemphill, the bank records show the following transactions: ⁵⁴³ Date Account Type Prom (deposit) or To (check) Amount Note 8/15/08 Escrow check UMMS 28.40 11/6/08 Escrow deposit UHI Claims Account 6,500.00 Full & final settlement 11/16/08 Escrow check Anthony Hemphill 1,246.82 Auto Accident 34.

As summarized above, C.J.B. rendered invoices totaling $2,711.99 for services provided to Anthony Hemphill, and Mr. Arrington testified that that full amount remains due for those services. The bank records do not indicate any payment made to C.J.B. on behalf of Mr. Hemphill. Mr. Stern received settlement proceeds for Mr. Hemphill from which the balance due to C.J.B. should have been paid. 35. With respect to Johnny Moore, Jr., the bank records show the following transactions: Date Account Type Prom (deposit) or To (check) Amount Note 11/6/08 Escrow deposit UHI Claims Account 8,500.00 Pull & final settlement 11/14/08 Escrow check Johnny Moore 2,971.00 11/21/08 Escrow cheek Associated Medical Clinic 1,500.00 Johnny Moore 11/16/09 Escrow deposit MAIF 2,955.00 6/16/09 date of loss 11/19/09 Escrow check Associated Medical Clinic 600.00 Johnny Moore—600; includes total of $4200 and other names 12/11/09 Escrow check Johnny Moore 799.00 Based on the identification of the November 16, 2009 item with a later date of loss, the Court infers that only the first three listed items relate to the personal injury claim resulting from injuries in 2008 for which Mr. Moore was treated by C.J.B. 36.

As summarized above, C.J.B. rendered invoices totaling $3,763.45 for services provided to Johnny Moore, Jr., and Mr. Arrington testified that $3,330.65 remains due for those services. The bank records do not indicate any payment made to C.J.B. on behalf of Mr. Moore. Mr. Stern ⁵⁴⁴ received settlement proceeds for Mr. Moore from which the balance due to C.J.B. should have been paid. 37. With respect to Wesley Henderson, Jr., the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 10/10/08 Escrow deposit GEICO 8,427.00 Uninsured motorist coverage, full & final settlement 10/20/08 Escrow check Wesley Henderson 4,788.00 Auto Accident 11/30/09 Escrow deposit GEICO 4,000.00 8/9/09 accident 12/11/09 Escrow check Wesley Henderson Jr. 1,991.67 Based on the identification of the November 30, 2009 item with a later date of loss, the Court infers that only the first two listed items relate to the personal injury claim resulting from injuries in 2008 for which Mr. Henderson was treated by C.J.B. 38.

As summarized above, C.J.B. rendered invoices totaling $3,891.37 for services provided to Wesley Henderson, Jr., and Mr. Arrington testified that $1,391.37 remains due for those services. The bank records do not indicate any payment made to C.J.B. on behalf of Mr. Henderson. Mr. Stern received settlement proceeds for Mr. Henderson from which the’ balance due to C.J.B. should have been paid. 39. With respect to Wesley Henderson III, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 10/10/08 Escrow deposit GEICO 7,200.00 Uninsured motorist coverage, full & final settlement 10/20/08 Escrow check Wesley Henderson III 3,970.00 Auto Accident 11/30/09 Escrow deposit GEICO 4,200.00 8/9/09 accident ⁵⁴⁵ Based on the identification of the November 30, 2009 item with a later date of loss, the Court infers that only the first two listed items relate to the personal injury claim resulting from injuries in 2008 for which Mr. Henderson was treated by C.J.B. 40.

As summarized above, C.J.B. rendered invoices totaling $3,904.60 for services provided to Wesley Henderson III, and Mr. Arrington testified that $1,404.60 remains due for those services. The bank records do not indicate any payment made to C.J.B. on behalf of Mr. Henderson. Mr. Stern received settlement proceeds for Mr. Henderson from which the balance due to C.J.B. should have been paid. 41. With respect to Clifford Johnson, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 10/2/08 Escrow deposit GEICO 7,375.00 Bodily injury coverage, full & final settlement 10/16/08 Escrow check Clifford Johnson 2,356.67 Auto Accident 42.

As summarized above, C.J.B. rendered invoices totaling $4,106.37 for services provided to Clifford Johnson, and Mr. Arrington testified that that full amount remains due for those services. The bank records do not indicate any payment made to C.J.B. on behalf of Mr. Johnson. Mr. Stern received settlement proceeds for Mr. Johnson from which the balance due to C.J.B. should have been paid. 43. With respect to Antionette Ellis, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note §1210$ Escrow check Chart One 100.00 Memo line also includes other names; amounts not specified 9/18/08 Escrow check Enterprise Car 169.00 Rental 9/22/09 Gen.

Bus. deposit ELCO administrative services 3,880.47 On behalf of client Antionette Ellis ⁵⁴⁶ 9/24/09 Escrow check Antionette Ellis 2,177.00 Court Judgment-Auto 44. As summarized above, C.J.B. rendered invoices totaling $2,555.58 for services provided to Antionette Ellis, and Mr. Arrington testified that that full amount remains due for those services. The bank records do not indicate any payment made to C.J.B. on behalf of Ms. Ellis. Mr. Stern received settlement or judgment proceeds for Ms. Ellis from which the balance due to C.J.B. should have been paid.

The Court also notes that Mr. Stern deposited some of the settlement or judgment proceeds in his general business account rather than his escrow account. 45. The bank records do not contain any items related specifically to Tiffany Gordon. 46. With respect to David Blake, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 10/31/08 Gen. Bus. check David Blake 200.00 Advance 1/13/09 Escrow deposit GEICO 5,000.00 Bodily injury coverage, full & final settlement 47.

As summarized above, C.J.B. rendered invoices totaling $4,357.83 for services provided to David Blake, and Mr. Arrington testified that $1,857.53 remains due for those services. The bank records do not indicate any payment made to C.J.B. on behalf of Mr. Blake. Mr. Stern received settlement proceeds for Mr. Blake from which the balance due to C.J.B. should have been paid. 48. With respect to Bryan Moore, the bank records show the following transactions: Date.

Account Type From (deposit) or To (check) Amount Note 4/2/09 Escrow deposit Allstate 280.00 Treatment from 1/26/09 under PIP 49. As summarized above, C.J.B. rendered invoices total- ■ ing $4,676.99 for services provided to Bryan Moore, and Mr. ⁵⁴⁷ Arrington testified that that full amount remains due for those services. The bank records do not indicate any payment made to C.J.B. on behalf of Mr. Moore. The bank records also do not indicate that Mr. Stern received settlement proceeds for Mr. Moore.

Thus, there is insufficient evidence to conclude that Mr. Stern received and retained any settlement proceeds for Mr. Moore from which the balance due to C.J.B. should have been paid. 50. With respect to Darion Johnson, the bank records show the following transactions: Date Account Type From (deposit) or To (check) Amount Note 2/17/09 Escrow deposit Encompass Ins. 7,500.00 Claim for Bodily Injury 5/29/09 Escrow check Darion Johnson 991.00 Replace Cheek 4019 51. As summarized above, C.J.B. rendered invoices totaling $3,696.37 for services provided to Darion Johnson, and Mr. Arrington testified that that full amount remains due for those services. The bank records do not indicate any payment made to C.J.B. on behalf of Mr. Johnson.

Mr. Stern received settlement proceeds for Mr. Johnson from which the balance due to C.J.B. should have been paid. 52. The bank records also show the following two payments to C.J.B. with no specification of a client or patient: Date Account Type From (deposit) or To (check) Amount Note 8/26/08 Escrow check CJB Therapy 1,200.00 No client specified 1/29/09 Escrow cheek CJB Therapy 3,000.00 No client specified 53. The bank records show the following month-ending balances in Mr. Stern’s escrow account, the account ending in 6211, from May 2008 to May 2010: Month Statement Ending Balance Month Statement Ending Balance Month Statement Ending Balance Jan.2009 $ 966.63 Jan.2010 $34,578.26 Feb.2009 $ 7,467.96 Feb.2010 $26,882.89 ⁵⁴⁸ Mar.2009 $ 6,618.92 Mar.2010 $ 3,731.04 Apr.2009 $ 18,531.00 Apr.2010 $ 8,187.10 May 2008 $6,676.50 May 2009 $168,988.96 May 2010 $ 3,057.10 June 2008 $6,614.05 June 2009 $ 30,287.00 July 2008 $ 676.49 July 2009 $ 6,932.00 Aug.2008 $7,868.59 Aug.2009 $ 38,458.00 Sept.2008 $3,830.76 Sept.2009 $ 20,824.00 Oet.2008 $3,968.78 Oct.2009 $ 22,000.00 Nov.2008 $5,217.04 Nov.2009 $ 30,705.86 Dee.2008 $5,146.04 Dec.2009 $ 18,449.73 68. With respect to sixteen of the nineteen clients included in the Commission’s first claim, the Commission has proved that Mr. Stern received the proceeds of settlements on behalf of those clients; that those clients received services from C.J.B.; that C.J.B. was to receive payment for those services from the settlement proceeds; and that Mr. Stern failed to pay in full the amounts due to C.J.B. The clients for whom this was the case are Sean P. Turner, Gary F. Stern, Denise Brown, Haile Stern, Micah Tucker, Dorothy Crowder, Dennis Hall, Collyn Riggs, Anthony Hemphill, Johnny Moore, Jr., Wesley Henderson, Jr., Wesley Henderson III, Clifford Johnson, Antionette Ellis, David Blake, and Darion Johnson. 69.

With respect to the remaining three clients included in the