Nulan - Stipulation

8/3/2019 Nulan - Stipulation

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SUPREME COURT, STATE OF COLORADO -FILEDORIGINAL PROCEEDING IN DISCIPL{NEBEFORE THE PRESIDiNG DiSCIPLINARY JUDGE NQV 0220111560 Broadway, Suite 675Denve r, Colo rado 80202 SUPRTtMECOURTFC(flORAD()Complainant: ACOURT USE ONLYATHE PEOPLE OF THE STATE OF COLORADO - - Case Number: 1 OPDJO8ORespondent: I (CONSOLIDATED WITHDARRELL EUGENE NULAN 1 1PDJO64)Adam J. Espinosa, #33937Assistant Regulation CounselAttorney for Complainant1560 Broadway, Suite 1800Denver Colorado 80202Te]ephone: (303) 866-6400, ext. 6478Fax No.: (303) 893-5302a.espinosa@csc . state. Co. US

STIPULATION, AGREEMENT AND AFFIDAVIT CONTAINING THERESPONDENTS CONDITIONAL ADMISSION OF MISCONDUCTOn this 2nd day of November, 2011, Adam J. Espinosa, AssistantRegulation Counsel and attorney for the complainant, and Darrell E. Nulan,Respondent who is represented by attorneys Gary a. Blum, Esq. and Jessica ED .McOawn. Esq. in these proceedings, enter into the following stipulation,agreement, and affidavit containing Respondents conditional admission ofmisconduct (stipulation) and submit the same to the Presiding DisciplinaryJudge for his consideration.

RECOMMENDATION: DISBARMENT1. Respondent has taken and subscribed the oath of admission, wasadmitted to the bar of this court on July 23, 1975, and is registered as anattorney upon the official records of this court, registration no. 06580.Respondent is subject to the jurisdiction of this court and the PresidingDisciplinary Judge in these proceedings.2. Respondent enters into this stipulation freely and voluntarily. Nopromises have been made concerning future consideration, punishment, orlenience in the above-referenced matter. It is Respondents persona decision,and Respondent affirms there has been no coercion or other intimidating acts


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by any person or agency concerning this matter.3. This matter has become public under the operation of C.RC.P.251.31(c) as amended.4. Respondent is familiar with the rules of the Colorado SupremeCourt regarding the procedure for discipline of attorneys and with the rightsprovided by those rules. Respondent acknowledges the right to a full andcomplete evidentiary hearing on the above-referenced complaint. At any suchhearing. Respondent would have the right to be represented by counsel,present evidence, call witnesses, and cross-examine the witnesses presented bythe complainant. At any such formal hearing, the complainant would have theburden of proof and would be required to prove the charges contained in thecomplaint with clear and convincing evidence, Nonetheless, having full

knowledge of the right to such a formal hearing, Respondent waives that right.5. Respondent and the complainant specifically waive the right to ahearing pursuant to C.R.CP. 251.22(dlll).6. Respondent and the complainant stipulate to the following factsand conclusions:

1OPDJO8Oa. Clarence D. Jones (M r. Jones) hired Respondent to assist himwith the management of his mothers and brothers estates.b. Mr. Jones is the executor for the Estate of Orlando Chris Jonesrocj Estat&), Mr. Jones late brother.c. Respondent knowingly exercised unauthorized dominion andcontrol over funds belonging to the OCJ estate.d. Specifically, Respondent made an unauthorized withdrawal offrom the OCJ Estate bank account with Bank of America by writing his lawfirm a check for $20,000.00 and then depositing that check into his law firmCOLTAF account.e. Respondent then proceeded to withdraw $19,304.19 from thosefunds held in the law firm COLTAF account, payable to himself. Respondentused the funds to pay another client, Mr. Marcelino Galan. He did not use thefunds for personal expenses.f. Respondent did not earn the $19,304.19 that he withdrew fromthe COLTAF account that belonged to Mr. Jones.

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g. The Denver District Attorneys Office filed criminal chargesgainst the respondent related to his conversion of Mr. Jones money. Thatase was captioned as People of the State of C&orado u. Darrell Milan,010CR2531.h. On December 17, 2010, the respondent pled guilty to a classhree felony, theft of $20,000.00 or more, and to a class one misdemeanor,heft of $500.00 to $1000.00, pursuant to C.R.S. 8-4-401(1), (2)(d), and2ftb.5), respectively. These convictions relate to the respondents conversion of2000000 of Mr. Jones money.i. Respondent received a two-year supervised deferred judgmentnd sentence on the class three felony, and a concurrent two-year supeiwIsedrobationary sentence on the class one misdemeanor.j. Respondent is required to pay a total of $20,000 in restitution.t the time of sentencing, the respondent tendered a $10000.00 cashiersheek to the District Attorneys Office for the victim of the crime, which leaves10,000.00 in restitution unpaid.

11PDJO64k. in July 2008, Respondent represented Marcelino Galan (Mr.alan) in a workers compensation case, case number 06C1211.1. In October 2009, Mr. Galan contacted Respondent and askedespondent to hold $20,304.19 in Respondents trust account. Mr. Galanxplained to Respondent that he and his wife were divorcing and that he wasfraid his wife would take the money in the divorce.

m. Respondent agreed to keep Mr. Galans $20,304.19 in therimble, Nulan, and & Evans COLTAF account.n. On October 23, 2009, Respondent deposited Mr. Galans20,304. 19 into the Trimble, Nulan, and & Evans COLTAF account. Theeposit was credited to Mr. Galan on the Trirnble, Nulan, and & Evans clientrust listing and described as research business opportunities.o. Respondents records reflect that he performed two hours ofork on behalf of Mr. Galan researching business opportunities. Respondentharged Mr. Galan $1,000 for this work, but later credited Mr. Galan $300owards those fees.p. Mr. Galan did not authorize Respondent to use the $20,304.29or any purpose other than minimal fees for researching businessppurtunties.

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q. Respondent knew he was not authorized to use the $20,304.19.r. Nevertheless, From October 2009 to January 2020, Respondentknowingly converted Mr. Oaf ans funds for his use and benefit withoutauthorization from Mr. Galan.s. Beginning November 30, 2009, the Trimble, Nulan, and &Evans COLTAF account dropped below $20,304.19 and by May 19 , 2010, theTrimble, Nulan, and Evans COLTAF account had a balance of $1,700.9S.t. On May 19, 2010, Mr. Galan went to Respondents office andrequested that Respondent return the $20,304.19 that he entrusted toRespondent. Respondent did not have the funds to pay Mr. Galan.u. Respondent paid Mr. Galan $500.00 on May 19, 2010. On thatsame day, May 19, 2010, Respondent withdrew $20,000.00 from a bankaccount belonging to his client Clarence Jones (M r. Jones). (These facts arepled in case number 1OPDJO8Q.)v. Respondent converted the Jones funds in order to makepayment to Mr. Galan.

Through Respondents conduct described above, Respondent hasengaged in conduct constitu ting grounds for the imposition of disciplinepursuant to C.R.C.P. 251.5. Respondent has also violaEed Cob. RPC 8.4(b)and 8.4(c),

7. Claim One of the complaint in 1OPDJOSD also charges Respondentwith violation of Cob. RPC 3.4(c) (A lawyer shall not knowingly disobey anobligation under the rules of a tribunal). Based upon the discovery performedto date, and as part of the stipulation and agreement containing Respondentsconditional admission of misconduct, the complainant moves that these allegedviolations of the Colorado Rules of Professional Conduct be dismissed.8. Pursuant to C.R.C.P. 251.32, Respondent agrees to pay costs inthe amount of $33190 (a copy of the statement of costs is attached hereto asExhibit 1) incurred in conjunction with this matter within one hundred andeighty days (180) days after acceptance of the stipulation by the PresidingDisciplina Judge, made oayabfe to Colorado Supreme Court AttorneyRegulation Offices. Respondent agrees that statutory interest shall accruefrom the date that the Presiding Disciplinary Judge accepts this stipulation.Should Respondent fail to make payment of the aforementioned costs andinterest within (30 ) days, Respondent specifically agrees to be responsible forall additional costs and expenses, such as reasonable attorney fees and costs ofcollection incurred by the complthnan in collecting the above stated amount.

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The comp]ainant may amend the amount of the judgment for the additionalcosts and expenses by providing a motion and bill of costs to the PresidingDisciplinary Judge, which identifies this paragraph of the stipulation andRespondents default on the payment.9. This stipulation is premised and conditioned upon acceptance ofthe same by the Presiding Disciplinary Judge. If for any reason the stipulationis not accepted without changes or modification, then the admissions,confessions, and stipulations made by Respondent will be of no effect. Eitherparty will have the opportunity to accept or reject any modification. If eitherparty rejects the modification, then the parties shall be entitled to a fullevidentiary hearing; and no confession, stipulation, or other statement made byRespondent in conjunction with this offer to accept discipline of disbarmentmay be subsequently used. If the stipula tion is rejected, then the matter will be

heard and considered pursuant to C.R,C.P. 251.18.10. The Offlce of Attorney Regulation Counsel has notified or will notifyshortly after the parties sign this agreement, the complaining witness(es) in thematter(s) of the proposed disposition.11. Respondents counsel, Gary B. Blum, Esq., hereby authorizesRespondent, Darrell E. Nulari, and the non-lawyer individual in the Office ofAttorney Regulation Counsel who is responsible for monitoring the conditionsset forth herein to communicate directly concerning scheduling andadministrative issues or questions. Respondents counsel wil] be contactedconcerning any substantive issue that may arise.12. Prior to entering into this stipulation, Respondent has read andcarefully considered the language of CR8. 18-1.3-401(3), which provides:Every person convicted of a felony, whether defined as such within oroutside this code, shall be disqualified from ... practicing as an attorneyin any courts of this state during the actua l time of confinement orcommitment to imprisonment or release from actual confinement onconditions of probation...Respondent acknowledges and agrees that, notwithstanding the lengthof the stipulated discipline in this stipulation, such statutory languageprohibits this Respondents readmission or reinstatement to the practice of lawpursuant to CRC], 251.29 until and unless Respondent has fully compliedwith all felony sentencing requirements in the inderiving criminal matter,which includes 1) all terms of confinement, 2) all termsof commitment, including any felony parole conditions, and 3) all terms offelony probation.

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PRIOR DISCIPLINE13. Respondent received a etter of admonition on December 4, 1981based on a conflict of interest in a dissolution of marriage matter.Respondent received a two-month suspension on December 3, 1991 fordishonest conduct related to the respondents wrongful disbursement ofescrowed funds to himself and to a client who was the respondentsstepbrother, in case number 91SA137. Respondents license was reinstated onMarch 10, 1992.

ANALYSIS OF DISCIPLINE14. Pursuant to American Bar Association Standards for ImposingLawyer Sanctions 1991 and Supp. 1992 (ABA Standards), 3.0, the Courtshould consider the following factors generally:a. The duty violated: Respondent violated his duty of honesty to twoclients and his duty to safeguard the client property by converting fundsbelonging to two clients. Respondent also violated his duty to the professionand the public by violating the law, impugning the reputation of the profession,and committing a criminal offense against his client.b. The lawyers mental state: Respondents mental state wasintentional and knowing with respect to his conduct of converting client fundsand committing theft.c. The actua or potential injury caused by the lawyers misconduct:Respondents conduct caused potentially serious harm to his clients when heconverted their funds. While Respondent repaid Mr. Galan his client funds, hedid so with funds that he converted from Mr. Jones, Bank of America madeMr. Jones whole by returning all of the funds stolen by Respondent.Respondent owes a significant amount of restitution to flank of America basedon his conduct in the Jones matter. Respondent has paid $12,780.00 inrestitution and he continues to make payments.d. The existence of aggravating or mitigating factors: Factors inaggravation which are present include: prior disciplinary offenses, dishonest orselfish motive, multiple offenses, and substantial experience in the law, ABAStandards 9.22(a), (b), (d), and (i). Factors n mitigation include: timely goodfaith effort to make restitution or to rectify consequences of misconduct, fulland free disclosure to disciplinary board or cooperative attitude towardproceedings, character or reputation, imposition of other penalties orsanctions, and remorse, ABA Standards 9.32(d), (e), (g), (k), and (I).

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15. Pursuant to ABA Standard 4. 11, disbarment is the appropriatesanction.16. Respondents misconduct in converting funds belonging totwo clients can only be characterized as serious misconduct, requiringthe most serious sanction provided by the rules: disbarment. ColoradoSupreme Court case law supports such a sanction.People ii. Varallo, 913 P.2d 1 (Cob. 1996) (the presumed sanction forknowing conversion of client funds is disbarment, regardless of whether thelawyer intended to permanently deprive the client of those funds.)People v. Dice, 947 P.2d 339 {Coio. 1997) (disbarment is appropriate forknowing misappropriation of funds despite the fact that the respondent hasnot been previously disciplined.)People u. Torpy, 966 P.2d 1040 (Cob. 1998) (disbarment is appropriatewhen a lawyer knowingly misappropriates client funds in the absence ofextraordinary mitigating factors.)17. Considering all of the factors described above, as applied to thiscase, disbarment is an appropriate sanction.

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RECOMMENDATION FOR AND CONSENT TO DISCIPLINEBased on the foregoing the parties hereto recommend that a Darrell E.Nulan be disbarred. Respondent consents to the imposition of discipline ofdisbarment. The parties request that the Presiding Disciplinary Judge orderthat the effective date of such discipline be immediate.Darrell ID. Nulan, Respondent; Gary B. Bluin and Jessica ID. Mcoawn,attorneys for Respondent; and Adam J. Espinosa, attorney fo r the complainant,acknowledge by signing this document that they have read and reviewed theabove and request the Presiding Disciplinary Judge to accept the stipulation asset forth above.

STATE OF COLORADOCITY ANDCOUNTY OF DENVER ) SB.

Adam I Espinb, ff987Assistant Regulation Counsel1560 Broadway, Suite 1800Denver; Colorado 80202(303) 866-6400 x6478Attorney for Complainant

Dar reH E. Nulan3570 E. 12h AvenueDenver, Colorado 80206(303) 839-1572

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Notary

Gary/B. Bium, Esq. #38921801 York StreetDenver, Colorado 80206(30 3) 399-3000

Attorney for Respondent

Subscribed and sw orn to before me this .7


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v i &jp-ctessica 6. McGawn, Esq. #330651801 York StreetDenver, Colorado 80206(303) 399-3000Attorney for Respondent

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Statement of CostsDarrell E. Nulan

1OPDJO8O/11PDJ06410-01 824/10-01600

4/27/2011 Deposition/Nulan 240.9010/17/2011 Administrative Fee 91.00Amount Due $ 331.90

EXHIBIT

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7 JAVERNICK& STENSTROM, LLCcef4it4 dAaMand epatQ313! South Vaughn Way. Suite 224Aurora, Colorado 80014

1S6167720) 449-0329 FUN 84-

INVOICEflDATE IN VOICE #5/19/2011 16579

BILL TO:ADAM J. ESPINOSA, ESQ.Office ofAttorney Regulation Counsell56OflroadwaySuite 1800Denver, Colorado 80202

RE;People v. Darrell Eugenc NulaiiSupreme Court, Slate of ColoradoOriginal Proceeding in Discipline Beforethe Presiding Disciplinary JudgeCase No , IOPDJO8O

. )

QUANTITY ITEM DESCRIPTION RATE AMOUNT36

I148I1

Depo ARC

e-TranscriptExhibitsTndex TabsAF-flaif Day0+1 Delivery

3.75 135.00eposition ofDARRELL EUONENULANOriginal Transcript PreparationApril 27, 2011

c-TranscriptExhibit CopyingIndex TabsAppearance Fee - Half DayDelivery (Original and copy)

5500.300.15750020.00

5.504201.2075.0020.00

--_.jJnterestwill be charged it the rate of 1.5% per month on anyamount not paid within 30 days. Total 5240.90

Nulan - Stipulation

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