BOARD MEMBERS FREDERICK G . BUESSER. JR. JOHN L. COT^. CHAIRPERSON MSGR. CLEMENT H. KERN DAVID BAKER LEWIS. SECRETARY FRANK J . MCDEVITT. D . 0 . WILLIAM G. REAMON LYNN H. SHECTER. VICE-CHAIRPERSON
STATE O F MICHIGAN
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J0HN.F. X. DWA,IHY Executive Dlrector & General Counsel SUITE 1 2 6 0
3 3 3 W. FORT STREET DETROIT, MICHIGAN 4 8 2 2 6 TELEPHONE: (3131 9 6 3 - 5 5 5 3
This is to inform the Courts of the State of Michigan of the following Order of Discipline: NOTICE OF SUSPENSION File No. DP-180/80 Related No. 2158/80 ROBERT M. SCHMIDT (P20011) 6290 W. Surrey, Birmingham, MI 48010, by an Order of the Attorney Discipline Board, approvina discipline by consent. (1) Suspension; (2) For a period of 3 years; (3) Effective December 9, 1980. The Formal Complaint charged that Respondent was instrumental in having four of his clients invest approximately $200,000.00 in a precious metals invest- ment scheme, that Respondent prepared loan agreements, that the borrowers did not repay Respondent's clients, that collateral which had been offered was found to be of significantly less value than represented by the borrowers, that Respondent became aware of the lack of value of said collateral but, nevertheless, subsequently recommended participation in the venture to yet another individual without advising said individual regarding the deficiency of said collateral, and that Respondent participated in approximately $400,000.00 in additional investments by other individuals by preparing legal documents, including promissory notes, collateral agree- ments, royalty agreements, and UCC financing statements, without disclosing to the new investors the aforementioned history of the venture, to-wit: failure of the borrower to repay prior loans and inadequacies of and misrepre- sentation regarding said collateral. The Complaint charged that most of the loans were in default, and that, althouqh Respondent personally believed in the venture, he failed to investiqate the same and adequately prepare himself to advise the investors completely. The Complaint
cha rged v i o l a t i o n s of GCR 953 ( 2 ) ( 4 ) and Canon 6 , DR 6-101 (A) ( 2 ) of the Code o f P r o f e s s i o n a l R e s p o n s i b i l i t y . The Respondent and t h e Grievance Admin i s t r a to r e n t e r e d i n t o an Agreement and S t i p u l a t i o n f o r Consent Order of D i s c i p l i n e wherein Respondent admi t t ed i n f u l l t he a l l e g a t i o n s i n t h e Formal Complaint i n exchange f o r a stated form of d i s c i p l i n e . The At torney D i s c i p l i n e Board approved s a i d consen t d i s c i p l i n e .
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~ & ~ & e wL David Baker L e w i s , S e c r e t a r y- ATTORNEY DISCIPLINE BOARD
Date o f I s suance :
FEB 6 1931