January 2025

DISBARMENT

Evie Pei Jeang
State Bar #221756, Alhambra (November 6, 2024)

Jeang was disbarred after she stipulated to committing 13 acts of professional misconduct related to a single client matter.

Her wrongdoing included: failing to render an appropriate accounting of client funds, failing to report to the State Bar that a judgment had been entered against her, and violating court orders; as well as two counts each of failing to maintain the required balance in her client trust account, and seeking to mislead a judge. Additional counts involved moral turpitude: two counts of misappropriating client funds and four counts of making material misrepresentations to opposing counsel and the court.

In the underlying matter, Jeang represented the petitioner/husband in a dissolution proceeding. A court order in the case specified that the parties had stipulated that proceeds in escrow from the sale of their home should be held in a client trust account and not released without agreement of the parties--with the exception of a $100,000 "pre-distribution" to both parties, as well as $35,000 to each of their attorneys and an additional sum for tax debts. Proceeds from the sale of the home totaled $4,831,125.73--which Jeang deposited into her client trust account.

Jeang then made several withdrawals totaling more than $500,000 and issued several payments from the account of more than $240,000--all of which were unrelated to the dissolution matter--depleting the account.

Approximately six years after the dissolution was initiated, the client hired counsel who demanded that Jeang provide an accounting of the funds in the case; in response, she sent him a redacted copy of a bank statement that was manipulated to show an ending balance much higher than the true balance. She also attached a copy of the falsified bank statement in a declaration filed with the court in which she purported to have complied with the accounting request.

After a hearing, the court ordered Jeang to pay the IRS to satisfy unpaid capital gains taxes, provide an accounting of the client funds she held, and transfer the remaining client funds to opposing counsel's client trust account. Jeang then filed a challenge to have the judge disqualified, falsely claiming she had raised a verbal peremptory challenge at the hearing; the peremptory challenge was denied.

Jeang then sent a letter purporting to report on her trust fund balance and alleged "ledger of expenses"--both of which contained false and misleading information about the balance and about disbursements made. The misrepresentations and misappropriations were discovered when the entirety of the funds in Jeang's client trust account were wired to opposing counsel.

Opposing counsel filed a complaint with the State Bar, and the client filed a complaint in court, which found Jeang had committed fraud and malfeasance in mishandling the funds at issue.

In aggravation, Jeang committed multiple acts of wrongdoing that significantly harmed the parties involved and failed to make restitution for the funds she misappropriated.

In mitigation, she entered into a pretrial stipulation and submitted evidence of performing community service. She was also allotted mitigating credit for having practiced law discipline-free for approximately 13 years--the weight of that reduced due to the seriousness of the charges involved.

Kai Zhu
State Bar #261637, Los Altos (November 6, 2024)

Zhu was disbarred by default after he failed to participate in the disciplinary proceeding in which he was charged with failing to comply with several conditions imposed in an earlier disciplinary order.

The State Bar Court found that all procedural requirements, including proper notice, had been satisfied in the case, and that Zhu did not move to have the default ultimately entered against him set aside or vacated.

He was found culpable of failing to comply with several probation conditions--including failing to timely schedule and participate in an initial meeting with the Office of Probation, failing to submit three quarterly written reports, and failing to provide Probation with proof of completing the State Bar Ethics School.

Zhu had three prior records of discipline before he was disbarred in the instant case.

SUSPENSION

Clifford Han Wei Chen
State Bar #209238, Honolulu, Hawaii (November 6, 2024)

Chen was suspended from practicing law for 60 days and placed on probation for one year after he stipulated to pleading guilty to one count of making conduit contributions (502 U.S.C. §§ 30122 and 30109(d)(1)(A)(ii)). The offense is a misdemeanor involving moral turpitude.

Chen was the CFO of a defense contracting firm that was a federal contractor servicing contracts for the U.S. Department of Defense.

During the time of the misconduct at issue, the Federal Election Campaign Act (52 U.S.C.§§ 30101-30126 and 30141-30146) limited primary and general election campaign contributions to $2,800 per election, for a total of $5,600 from any one individual to any one federal candidate. The Act also prohibited a person from making a contribution in the name of another person, including by giving funds to a "straw" or "conduit" contributor to pass along to a federal candidate as his or her personal contribution. Federal government contractors were legally prohibited from making contributions to a federal candidate or political committee.

Chen, using his company credit card, made a $5,600 contribution to Susan Collins' (R-Maine) authorized committee in her campaign for reelection in 2020. The company treasurer then made a check for $6,000 payable to Chen, which he cashed the same day. Also that day, "Individual A" made a contribution to Collins' committee. The next day, Chen deposited $5,600 into his personal bank account, and a few days later, wrote a check for $5,600 from his personal account to Individual A. The amount was used as a credit toward the balance of Individual A's credit card, which was used to make the conduit contribution to the campaign.

In mitigation, Chen entered into a pretrial stipulation.

John Easton Cowan
State Bar #168110, San Francisco (November 6, 2024)

Cowan was suspended for six months and placed on probation for two years after he stipulated to committing 18 acts of professional misconduct related to 10 separate clint matters.

His wrongdoing included: failing to perform legal services with competence, failing to report court-imposed sanctions to the State Bar, and failing to explain the legal matter to enable a client to make informed decisions in the matter; two counts each of failing to keep clients reasonably informed of significant case developments and failing to return unearned advanced fees; three counts of failing to release a client's papers and property after being requested to do so; and eight counts of failing to act with reasonable diligence in representing his clients.

The facts in the matter at hand follow a similar pattern: Cowan was hired to represent clients with various claims--ranging from wrongful termination to employment disputes to landlord/tenant matters, to defamation charges to various other civil disputes--then failed to adequately interview or meet with the clients, appear at multiple hearings, respond to opposing counsel's motions for information, participate in the promised settlement of cases, or participate in meaningfully settling them. His lack of response hampered several of his clients' cases--some of whom claimed he did not answer their requests for information or keep them adequately informed of the status of their cases.

In mitigation, Cowan entered into a prefiling stipulation, had no record of discipline in many years of practice, suffered from family problems during the time of the misconduct, and submitted letters from individuals who were aware of the extent of the misconduct at issue--all of whom vouched for his good character and pro bono activities in the community.
In aggravation, he committed multiple acts of misconduct in the instant case.

Carlos Gregory Martinez
State Bar #248358, Santa Clara (November 6, 2024)

Martinez was suspended from the practice of law for 90 days, with credit given for an earlier period of inactive enrollment, and placed on probation for one year after he successfully completed the State Bar Court's Alternative Discipline Program (ADP).

Two disciplinary cases against Martinez were consolidated earlier, both referred for ADP evaluation. He submitted evidence showing the nexus between his mental health issues and the misconduct at issue, and was accepted into the program.

Martinez stipulated to misconduct in the underlying matters, which included: failing to comply with court orders, failing to respond to reasonable client inquiries, failing to provide an accounting of client funds, failing to promptly return a client's file after being requested to do so, and failing to cooperate in the State Bar's investigation of the wrongdoing alleged.

In aggravation, Martinez had two prior records of discipline, committed multiple acts of misconduct, and caused significant harm to both his client and to the administration of justice.

In mitigation, he entered into a pretrial stipulation and was also allotted mitigating credit in the present matter for completing the ADP.

--Barbara Kate Repa