f/k/a archives . . . real opinions & real haiku

Thanks to the HALT eJournal, I just learned the fascinating story of 

Milwaukee personal-injury lawyer Charles J. Hausmann:

His firm Hausmann Mc Mally SC is one of the largest p/i firms in

Wisconsin, and he’s been in practice since 1971, with no prior disciplinary

record.

 

In June 2002, Hausmann pleaded guilty to federal fraud charges for taking   

kickbacks of $77,000 from a local chiropractor — that was 20% of the fees

that were charged for medical services to over 200 of Hausmann’s uninsured

clients, who were never told of the referral arrangement.  (The plea was

conditional, allowing him to appeal the denial of a motion to dismiss.)

“tinyredcheck” Hausmann would have the chiropractor write checks to

third parties, including a charity whose bank account

Hausmann controlled (and which used some of the funds

for landscaping at Hausmann’s residence).  One of the

charities named Hausmann its “attorney of the year” in

August 2003. [many more details on the skullduggery —

how the scheme was structured and where the money

went — can be found at Paragraphs 6 – 8 of this opinion]

 

In September 2003, Hausmann lost his appeal to the 7th Circuit, and on

November 28, 2003, he started a 60-day sentence at the minimum security

prison at Oxford.   Hausmann told the Milwaukee Journal Sentinal that “I

expect to pay my penalty and come back and be the most caring and

empathetic lawyer in history.”

the thief
is just as he is…
hazy moon

 

                   Issa

 

Despite all of the above, until August 2005, the Wisconsin Bar would 

inform anyone who inquired that Charles J. Hausmann was an “attorney

in good standing.”  He continued his practice, using brochures that urge

injured persons to “Find a lawyer and law firm they can really trust.”  

 

You see, the Office of Lawyer Regulation never bothered to file a complaint

against Hausmann until January 15, 2004, and Wisconsin’s Supreme Court

didn’t issue its opinion in the matter until July of this year, ordering a one-year

suspension effective August 30, 2005. Matter of Hausmann, Case #2004AP156-D,

filed July 19, 2005).  

The Office of Lawyer Regulation [OLR] argued that Charles

Hausmann deserved a two-year suspension, as he failed

to admit to any harm to his 200 clients or conflict of

interest.  The Referee was very impressed with Hausmann’s

charitable service — calling it “far above anything I have ever

seen before” — and recommended a one-year suspension. 

Pointing to his restitution and long record of community

service and lack of prior discipline, Hausmann wanted 5

months. He refused to call the payments kickbacks, but

did concede it was an “ill-conceived plan.”

Many observers, including HALT’s Suzanne Blonder (Fox 6 News, “Justice

Delayed?”, Aug. 29, 2005), believe that Hausmann’s discipline came far

too late and is far too lenient.   I agree with Blonder and the OLR.

harvest moon–
wherever you are
someone’s annoyed

 

          Issa

There are a few other interesting wrinkles to this story:

• 
  
  A constant, public critic of the lax disciplinary
  
  
  process in this case is Michael F. Hupy, a
  
  
  p/i lawyer and competitor of Hausmann.  Hupy
  
  
  even has a “consumer tips” page on his website 
  
  
  warning the public about Hausmann.

• 
  
  
  

  The law firm of Hausmann McNally is fighting

  
  

  to keep its name, despite the suspension. 

  
  

  Lawyer Richard Cayo argues  “There are a lot

  
  

  of good lawyers under that trade name that is

  
  

  now fully branded. They should be permitted

  
  

  the use of their corporate identity.”

• 
  
  
  

  Lawyer Hausmann conceived and sponsored

  
  

  this mural of Phoenix Rising, which appears

  
  

  on a building he owns in Milwaukee’s now-

  
  

  ascending West End, where he grew up. 

  
  

  Although his professional death won’t be for

  
  

  500 years, like the Phoenix, I bet Hausman

  
  

  is planning to emulate the mythic bird

Does this guy deserve a break?  What did Hausmann as a fiduciary owe to

his clients?   Notice of the arrangement with Dr. Rise?  Passing on the

discounts to benefit the clients?  What did the Wisconsin Office of Lawyer

Regulation owe to the public?   An immediate, temporary suspension once

the guilty plea was entered (as Carolyn Elefant suggests in a Comment)?

Once Hausmann lost his appeal?  

 

update (Sept. 22, 2005): Walter Olson at Point of Law wonders

whether lawyers should be held to higher standards than hotel

concierges, who he claims regularly take kickbacks from restaurants

to which they steer business.   (Until Walter mentioned that I thought

a 60-day sentence was insufficient for Hausmann, I hadn’t given his

jailtime any thought.  Sixty days of “soft time” isn’t really very much,

is it?  The question of white collar prison sentences is much in the

news lately, and I shall leave the topic to the experts, e.g., here, here

and there.)

 

 

 

aiming their butts
at the moon…
rice field geese

      

all poems by Kobayashi Issa 

translated by David G. Lanoue