Five lawyers lose licenses as part of bar's 'fast track' effort

The State Bar has obtained the resignations of four lawyers and placed a fifth on involuntary inactive status. All five faced disciplinary charges before the bar and were placed on a "fast track" for action by prosecutors who believed their conduct posed a threat to their clients and the public. They are:

1. DALE JOHN PEROUTKA, [#74901], 63, of Anaheim. State Bar Court Judge Robert M. Talcott placed Peroutka on involuntary inactive status Nov. 7, pending a trial on charges of misappropriating client funds.
2. JAMES CREIGHTON HARVEY, [#91239], 51, of Lincoln (Placer County). Creighton submitted his resignation to the bar Oct. 24; it is pending before the Supreme Court.
3. MILTON DEAN LATHAN, [#133092], 47, of San Jose. He submitted his resignation in July and it was accepted by the Supreme Court to take effect Nov. 20.
4. LEONARD MICHAEL SAMUELS, [#162247], 55, of Los Angeles. His resignation took effect Oct. 27.
5. DONALD CARSTENS, [#50247], 56, of Newport Beach. He resigned, effective Oct. 20.

Peroutka has been charged by the bar with issuing 29 bad checks from his client trust accounts since May 1998 and with misappropriating $6,691 of client funds as recently as last March and April.

The bar applied to the State Bar Court to enroll him involuntarily inactive, alleging that his misconduct poses a substantial threat of harm to clients and the public. Peroutka is ineligible to practice until the charges are litigated in the bar court.

The bar's next step is the initiation of formal disciplinary proceedings with the filing of a Notice of Disciplinary Charges. Kevin B. Taylor, deputy trial counsel in the Office of the Chief Trial Counsel, said the range of discipline could include disbarment.

Peroutka was suspended for six months in 2001 as a result of similar misconduct and was ordered to make restitution to the victim. Judge Talcott cited his failure to correct his conduct following the earlier discipline as a reason for his current ruling.

James Harvey already was suspended from practice in October as the result of an unrelated disciplinary matter stemming from trust account violations which did not involve theft. When he submitted his resignation to the bar, he was placed on inactive enrollment and once his resignation takes effect, he will not be entitled to practice in California.

He also is criminally charged in Placer County with embezzlement or theft from an elderly adult, grand theft of personal property, embezzlement and forgery.

Lathan was placed on inactive status by the State Bar Court in July after it found his conduct posed a threat of irreparable harm to the public. At a hearing before the court, he was charged with changing some of his clients' addresses in order to receive their government checks, which he then cashed. He changed the addresses when the clients failed to pay their legal fees.

In September, the Los Angeles Superior Court assumed jurisdiction over Leonard Samuels' practice and he resigned a short time later. He was charged with grand theft by embezzlement after he allegedly stole a $130,000 medical malpractice settlement from a cancer patient.

Samuels obtained the settlement in March 2000, but allegedly told the client his account had been frozen and he was unable to distribute the money he owed her. Although her illness resulted in chronic, severe pain, Samuels' client was forced to continue to work because she was unable to access her funds.

In August, the Orange County Superior Court assumed jurisdiction over the practice of Newport Beach attorney Donald Carstens, who was accused of misappropriating $357,703 in trust funds from about 60 personal injury clients. He was placed on involuntary inactive status in August and subsequently resigned.

The Orange County court also assumed jurisdiction over the practice of THOMAS MICHAEL WRIGHT [#147832], 55, of San Clemente last month. Wright has been suspended repeatedly for not keeping up with child support payments and was suspended on other disciplinary charges in April.

The bar charged that he continued to practice law despite the suspension, and also alleged that he abandoned clients, failed to perform legal services competently, refund fees or return client files. The court also issued a $15,000 bench warrant for Wright's arrest.

The bar has filed an application to place Wright on involuntary inactive enrollment.

As part of a recently inaugurated fast track program, the bar tries to quickly remove from practice attorneys it believes pose a threat of imminent harm to their clients and the public.

So far, it has filed charges against 25 attorneys and is investigating another 15.