Justia Professional Malpractice & Ethics Opinion Summaries

Disciplinary proceedings against Respondent Steven Perskie (who retired from the judiciary in 2010) began with the filing of grievances with the Advisory Committee in July 2008 by Alan Rosefielde, a party to a civil action over which respondent presided between February 2005 and October 2006. The litigation was a business dispute involving issues that arose from Rosefielde's employment with and eventual termination from a business based in Atlantic City. Rosefielde contended that his termination was due to his recommendation that his employer end its business relationship with an insurance broker named Frank Siracusa, whom Rosefielde alleged had engaged in improper and questionable business practices. Siracusa was a central witness to Rosefielde’s counterclaim. Respondent had a longstanding business, social, political, and personal relationship with Siracusa, but informed the parties to the litigation several times that notwithstanding his relationship with Siracusa, he was not uncomfortable presiding over the case and evaluating Siracusa's credibility if Siracusa were to appear as a witness. The Advisory Committee recommended that respondent be censured for violating multiple Canons of the Code of Judicial Conduct. Upon review, the Supreme Court held that Respondent violated Canons 1, 2A, 2B, and 3C(1) of the Code of Judicial Conduct and R. 1:12-1(f). The Court censured Respondent. View "In the Matter of Steven P. Perskie, a Former Judge" on Justia Law

This appeal arose from an earlier trial relating to the Enron scandal. The government alleged that Enron loaned out the stake in the barges that it owned off the Nigerian coast to Merill Lynch, risk-free and with a guaranteed return, but made it seem like a sale so that it could book a pretend profit. Defendant, a managing director at Merrill Lynch and the head of its Strategic Asset and Lease Finance group at the time of the transaction, challenged his convictions related to the sale on the grounds that the government violated his right to due process by withholding materially favorable evidence that it possessed pre-trial. The court affirmed and held that the district court did not clearly err in holding that the evidence at issue was not material. View "United States v. Brown" on Justia Law

This case arose when debtor, a former firefighter, and his wife, filed a Chapter 7 bankruptcy petition, but failed to disclose on their bankruptcy schedules either his judgment against the City of Arlington (an asset of the estate) or his associated legal fees (a liability of the estate). At issue was whether judicial estoppel barred a blameless bankruptcy trustee from pursuing a judgment that the debtor, having concealed the judgment during bankruptcy, was himself estopped from pursuing. The court held that it did not. The court concluded that this result upheld the purpose of judicial estoppel, which in this context was to protect the integrity of the bankruptcy process, by adhering to basic tenets of bankruptcy law and by preserving the assets of the bankruptcy estate for equitable distribution to the estate's innocent creditors. View "Reed v. City of Arlington" on Justia Law

The Mississippi Commission on Judicial Performance (Commission) filed two formal complaints against Alcorn County Justice Judge Jimmy McGee alleging willful misconduct and conduct prejudicial to the administration of justice which brought the office into disrepute. The Commission and Judge submitted a joint motion for approval of a 120-day suspension, a public reprimand, costs and fees to the Supreme Court. After its independent review, the Supreme Court agreed that Judge McGee's conduct violated several canons of the Code of Judicial Conduct. The Court disagreed with the Commission's recommendation. The Court found the Judge's actions warranted a public reprimand, suspension from office for 270 days, and costs and fees. View "Mississippi Comm'n on Judicial Performance v. McGee" on Justia Law

Appellant appealed the denial of her application for Social Security Administration (SSA) disability benefits where the ALJ concluded that she retained the ability to perform her past relevant work and was therefore not disabled. The court held that the ALJ was not required to give controlling weight to the opinions of appellant's treating physician. The court also held that because there was substantial evidence in the record to support the ALJ's findings, the court declined to disturb the ALJ's decision on the ground that the ALJ failed to comply with the SSA Commissioner's policies in evaluating the severity of appellant's fibromyalgia and that the ALJ failed to give adequate weight to appellant's statements and the statements of her family and friends. The court further held that the ALJ's hypothetical to the vocational expert was proper and there was no evidence in this case to support a finding that bias impacted the ALJ's decision. Accordingly, the Commissioner's final decision to deny appellant's application for benefits was affirmed. View "Perkins v. Astrue" on Justia Law

Respondent Municipal Court Judge Sheryl Polk McKinney's sister, who was the Clerk of the Town of Varnville, was arrested and charged with embezzlement of public funds, forgery, and misconduct in office.  Respondent's sister was accused of issuing checks in Respondent's name, forging respondent's name to the checks and converting the money for her personal use over an eight year period. Upon review, the Supreme Court found that by her misconduct, Respondent violated multiple Canons of the Code of Judicial Conduct (Rule 501, SCACR). The Court found Respondent’s misconduct warranted a suspension from judicial duties.  Respondent was suspended for thirty days.  View "In the Matter of Municipal Court Judge Sheryl Polk McKinney" on Justia Law

This case arose when appellant alleged claims of tortuous interference with contract or business expectancy and violation of the Arkansas Deceptive Trade Practices Act (ADTPA), Ark. Code Ann. 4-88-101, et seq. Appellant subsequently sought a temporary retraining order and preliminary injunction after appellee terminated appellant's patient privileges at a residential nursing home. The court held that appellant did not meet the factors in the Dataphase Syst. Inc. v. C.L. Syst., which evaluated whether to issue an injunction. Consequently, the court held that the district court did not abuse its discretion in denying the motion for a preliminary injunction and the judgment was affirmed. View "Roudachevski v. All-American Care Centers, Inc" on Justia Law

Petitioner, a former stockbroker, sought review of an order of the Securities and Exchange Commission (SEC), which found that he willfully violated the antifraud provisions of the Securities and Exchange Act of 1934 (Exchange Act), 15 U.S.C. 78j(b), 17 C.F.R. 240.10b-5, by orchestrating a scheme that allowed certain customers to engage in late trading of mutual funds, and that he aided and abetted and caused the failure of his firm to keep accurate books and records, in violation of the Exchange Act's recordkeeping requirements. At issue was whether the SEC's order, which barred petitioner from working in the securities industry, issued a cease and desist order against him, ordered him to disgorge his unjust enrichment amount plus interest, and imposed a civil penalty, should be vacated. The court denied the petition and affirmed the SEC's order because petitioner's conduct clearly violated the Exchange Act's antifraud and recordkeeping provisions and because the penalties imposed by the SEC were not unreasonable. View "Vancook v. Securities and Exchange Commission" on Justia Law

Plaintiffs appealed from a judgment of the district court dismissing their class-action complaint, which asserted a single claim against MetLife under ERISA, 29 U.S.C. 1001 et seq. Plaintiffs alleged that through the use of "retained asset accounts" (RAAs), MetLife breached fiduciary duties imposed by ERISA by retaining and investing for its own profit life insurance proceeds due them under employee benefit plans that MetLife administered. The court held that the district court correctly determined that plaintiffs failed to state a claim, since MetLife discharged its fiduciary obligations under ERISA when it established the RAAs in accordance with the plans at issue, and did not misuse "plan assets" by holding and investing the funds backing the accounts. Accordingly, the court affirmed the judgment of the district court. View "Faber, et al. v. Metropolitan Life Insurance Company" on Justia Law

This case concerned petitioner's handling of accounts belonging to seven Wachovia Securities, Inc. (Wachovia) customers. Petitioner, a registered representative associated with Wachovia, a member of the New York Stock Exchange (NYSE), petitioned for review of an order of the SEC sustaining a disciplinary action against her by the NYSE. The court denied the petition for review and affirmed the SEC order because the court concluded that the SEC's decision was reasonable and supported by substantial evidence. View "Katz v. Securities and Exchange Commission" on Justia Law