BOARD MEMBERS G. REAMON. CHAIRPER~ON SHECTER. VICC-CHAIRPCRSON IN€ N. OLNNING. SECRETARY . c o r d IARYAT J. SEATING 5 C . VINCENT. M. 0 .
NOTICS OF SUSPENSION
FILE
NO:
199-82
JOl4N F X 3 W b l u w EXECUTIVE D l P L C T C a 4 G E N E R A L C O U N S E L
SUITE I 2 5 0 3 3 3 W . FORT STREE' D E T R O I T . MICHIGAN a 8 2 2 5
T E L E P H O N E ( 3 1 3 ) 9 5 3 - 5 5 5 3
HENRY LEE, (P165051, 26261 Evergreen, S u i t e 120, S o u t h f i e l d , M I 48076, by Macomb County Hearing Panel #1.
(1) Suspension ( 2 ) For a period o f 60 days. ( 3 ) E f f e c t i v e October 10, 1984 T h e H e a r i n g P a n e l found t h a t : I n a d d i t i o n to R e s p o n d e n t ' s l aw p r a c t i c e he was a c t i v e i n the a r e a of investments and synd ica t ions ; C l i e n t s of Respondent contac ted him rega rd ing the a v a i l a b i l i t y of i n v e s tment o p p o r t u n i t i t e s ; pursuant to r epea ted i n q u i r i e s of t he c l i e n t s , Respondent pursuaded the c l i e n t s t o l o a n c e r t a i n monies t o a condominium conversion p r o j e c t i n which the Respondent had a pe r sona l i n t e r e s t . Over a period of s e v e r a l yea r s Respondent acqui red from the c l i e n t s a t o t a l of $1 ,070 ,000 a l l o f wh ich was i n v e s t e d i n a condominium convers ion p r o j e c t owned by a co rpora t ion i n which R e s p o n d e n t and h i s w i f e were t h e s o l e s t o c k h o l d e r s . Responden t a p p l i e d a po r t ion of the funds t o purposes o t h e r than the condominium p r o j e c t wi thout the knowledge o r consent of s a i d c l i e n t s ; the ba lance of t h e monies were expended i n fu r the rance of t he completion of t he
condominium p r o j e c t . By reason of gene ra l economic cond i t ions , t he p r o j e c t f a i l e d t o prosper and Respondent, w i t h t h e knowledge and p a r t i c i p a t i o n of s a i d c l i e n t s , amended the l and c o n t r a c t and f i n a n c i n g agreements to secu re an ex tens ion of the repayment terms. Respondent d i d n o t a f f i r m a t i v e l y a d v i s e t h e c l i e n t s t o c o n s u l t i n d e p e n d e n t counse l regarding the a d v i s a b i l i t y of t he i n i t i a l inves tment and Respondent' s p o s i t i o n and i n t e r e s t i n t h e venture . Fu r the r , Respondent o f f e red the c l i e n t s no s e c u r i t y f o r s a i d loans , nor was any evidence of indebtedness v o l u n t a r i l y fu rn i shed u n t i l a s p e c i f i c r eques t f o r the same was made by the c l i e n t s .
The P a n e l found v i o l a t i o n s of GCR 1963, 953(2) . i n the amount of $2,947.64.
Costs were a s ses sed
Dated: 10-15-84