In the Matter of Jerry D. Rudman

Facts Leading to Discipline

Jerry D. Rudman was admitted to the California State Bar in 1975 after working primarily in accounting. By the late 1970s and early 1980s, Rudman experienced severe financial and emotional distress, including declining income, unpaid income taxes exceeding $100,000, mortgage delinquency, and a deteriorating marriage. During this period, Rudman became socially isolated and failed to seek help from friends or family.

In October 1981, Rudman joined a criminal conspiracy to print and distribute counterfeit United States currency. The plan involved producing approximately $1 million in counterfeit bills, with Rudman and a co-conspirator to receive $500,000. Rudman traveled to New York with counterfeit currency and participated in initial distribution efforts. While in New York, Rudman experienced an anxiety attack, recognized the gravity of his actions, and withdrew from active participation in the conspiracy.

Rudman returned to California and later assisted a co-conspirator with bail, unaware that the co-conspirator was cooperating with law enforcement. A recorded conversation led to Rudman’s arrest. In April 1982, Rudman was convicted in federal court of conspiracy and attempting to pass counterfeit currency—crimes involving moral turpitude per se. The California Supreme Court interimly suspended him, and in 1984 accepted his resignation from the practice of law with disciplinary charges pending.

Following his suspension, Rudman did not practice law. Instead, he rebuilt his life over more than a decade, obtaining steady employment as a senior accountant and later as controller for a defense research firm handling millions of dollars in government contracts. He also underwent four years of psychotherapy, accepted full responsibility for his misconduct, and developed improved communication and coping skills.

In 1990, Rudman sustained a single misdemeanor DUI conviction unrelated to his prior misconduct or the practice of law. The incident was isolated, and Rudman took steps to prevent recurrence.

Charges / Basis for Proceeding

This matter arose as a petition for reinstatement. Rudman was required to meet the same burden as a disbarred attorney, demonstrating rehabilitation, present moral fitness, and present ability and learning in the law.

The Office of Trial Counsel opposed reinstatement, contending that Rudman had not yet demonstrated sufficient rehabilitation or present moral qualifications.

Defenses and Evidence Presented

Rudman presented extensive evidence of rehabilitation, including:

• Acceptance of full responsibility and deep remorse for his criminal conduct;
• Four years of psychotherapy addressing emotional and communication deficits;
• More than ten years of exemplary conduct in fiduciary employment handling millions of dollars;
• Strong character testimony from employers, professionals, attorneys, and family members;
• Evidence that the DUI conviction was isolated, aberrational, and unrelated to his prior misconduct.

Rudman also addressed minor omissions in his reinstatement petition, demonstrating that the information was disclosed elsewhere, with no intent to deceive or conceal adverse facts.

Court’s Ruling

The Review Department independently reviewed the record and affirmed the hearing judge’s reconsidered decision granting reinstatement. The court emphasized that rehabilitation must be evaluated in light of the original moral shortcomings, but also recognized that rehabilitation is a process demonstrated by sustained exemplary conduct over time.

The court rejected the Office of Trial Counsel’s arguments that Rudman’s lifestyle had not changed, that his therapy should be discounted, or that his withdrawal from the conspiracy was insufficient. The court noted that Rudman’s criminal involvement was limited in duration, mitigated by emotional factors that had been brought under control, and followed by more than a decade of responsible, honest conduct.

The Review Department also concluded that Rudman’s single DUI conviction did not negate his showing of rehabilitation, given its isolated nature, lack of connection to the practice of law, and absence of substance abuse issues.

Outcome

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