In the Matter of Moriarty (1990)
Citation: 1 Cal. State Bar Ct. Rptr. 245
Court: State Bar Court, Review Department
Filed: November 26, 1990
Panel: Norian, J.; Pearlman, P.J.; Stovitz, J.
Background
Respondent James T. Moriarty, a member of the California Bar since 1974 with no prior discipline, was convicted in federal court of making and subscribing a false income tax return (26 U.S.C. §7206(1)). He filed three annual federal tax returns claiming fraudulent charitable deductions through a mail-order charter of the Universal Life Church (ULC). The deductions represented personal expenses, including home and family costs, falsely labeled as church contributions. Moriarty was sentenced to two years in federal prison (execution stayed) and four years’ probation. The California Supreme Court found moral turpitude, imposed an interim suspension for seven months, and referred the matter to the State Bar for disciplinary recommendation.
Charges and Review
The hearing referee recommended a seven-month suspension (crediting the time already served under interim suspension) and four years’ probation. The Office of Trial Counsel sought review, claiming the findings were insufficient and the sanction too lenient. The Review Department independently reviewed the record, expanded factual findings, and adopted modified probation conditions while affirming the recommended discipline.
Findings of Fact
- Moriarty claimed unlawful deductions for 1980–1982, labeling personal and family expenses as religious contributions.
- He used the Universal Life Church charter to classify his pool as a “baptismal font,” his children’s tuition as “religious education,” and vacations as “missionary outreach.”
- He continued these deductions for three years, demonstrating multiple acts of misconduct with ample opportunity for reflection.
- He had extensive law enforcement experience as an FBI agent and deputy district attorney, aggravating the seriousness of the offense due to his awareness of the law.
Mitigation
- No prior discipline: Practiced law for over seven years without misconduct before the offense and six years thereafter without incident.
- Physical and emotional hardship: In 1979, he suffered a leg amputation due to cancer. The humiliation of an insensitive IRS audit, combined with grief from his mother’s death and caring for an alcoholic father, led to emotional instability.
- Rehabilitation: Underwent consistent counseling, acknowledged wrongdoing, and demonstrated insight into his misconduct.
- Character and community service: Received numerous letters of support from judges and lawyers aware of his conviction, attesting to his integrity and community involvement.
- Cooperation and candor: Fully cooperated with the State Bar and exhibited complete candor during proceedings.
Aggravation
- Multiple acts of misconduct across three consecutive years.
- High level of legal sophistication and understanding of federal law as a former FBI agent and prosecutor.
Holding
While the conviction involved moral turpitude, the Review Department declined to recommend disbarment under Standard 3.2, finding that compelling mitigation predominated. It noted comparable cases — including In re Hallinan (1957) and In re Distefano (1975) — involved more egregious conduct or deceit directly tied to law practice. The Review Department concluded that further suspension beyond the seven months already served would be punitive and unnecessary to protect the public.
Comparison to Co-Defendant
Moriarty’s co-defendant, Attorney Terrence W. Andrews, convicted of the same federal offense and more serious related conduct, received only a 90-day actual suspension. The Review Department cited this as a proportionality factor supporting the limited suspension.
Disposition
The Review Department recommended a total two-year stayed suspension, four years’ probation (concurrent with the federal term), and credit for seven months of actual suspension already served.
Sanctions Table
| Issue | Authority / Standard | Outcome |
|---|---|---|
| Federal conviction (26 U.S.C. §7206(1)) | Crime of moral turpitude | Established |
| Standard 3.2 (moral turpitude) | Presumptive disbarment | Declined — mitigation predominated |
| Prior record | No prior discipline | Strong mitigation |
| Emotional/physical hardship | Cancer, amputation, family loss | Major mitigation |
| Candor and cooperation | Full disclosure to State Bar | Mitigating |
| Actual suspension | March–October 1988 | Credit granted |
| Final discipline | 2 years stayed; 7 months actual; 4 years probation | Affirmed |
Significance
Moriarty is a leading conviction-referral case balancing moral turpitude with rehabilitation. The Review Department emphasized proportional discipline, recognizing that genuine remorse, therapy, and sustained good conduct after conviction may rebut the presumption of disbarment under Standard 3.2. The case underscores that the goal of discipline is protection of the public and rehabilitation — not punishment.