Overview

Attorney: George Timothy Smithwick
Case No.: 12-O-10011
Decision: One-year stayed suspension with 60 days actual suspension, probation, and restitution requirements.

The Review Department affirmed a 60-day actual suspension for attorney George Timothy Smithwick arising from his association with My US Legal, a nonlawyer company that marketed “lender liability” lawsuits to distressed homeowners. The misconduct involved fee sharing, failure to perform competently, failure to refund unearned fees, and failure to notify the State Bar of employing a resigned attorney. The court emphasized his 30-year discipline-free career, cooperation, and remorse as compelling mitigation.

Factual Background

Admitted to the bar in 1979, Smithwick began accepting clients referred from My US Legal in 2009. The company, operated partly by nonlawyers, solicited homeowners facing foreclosure and sold them “predatory lending” suits for monthly fees. Smithwick received a flat $250 per client, agreeing to provide legal services in exchange for the payments collected by the company.

Although he represented at least twelve clients, Smithwick performed little or no substantive legal work before ending the relationship after six to eight months. My US Legal later collapsed financially, leaving clients without results or refunds. Smithwick set aside $15,740 in his client trust account to reimburse former clients but was unable to locate most of them despite diligent efforts.

Findings of Misconduct

• Improper Fee Sharing with Nonlawyers (Rule 1-320(A)): Accepted fees from My US Legal’s pooled client payments.
• Failure to Perform Competently (Rule 3-110(A)): Did not perform meaningful work for at least a dozen clients.
• Failure to Refund Unearned Fees (Rule 3-700(D)(2)): Did not timely refund approximately $15,740 in client payments.
• Failure to Notify of Employing a Resigned Attorney (Rule 1-311): Employed a former attorney without notifying the State Bar.

Aggravation

• Multiple Acts of Misconduct: Fee-sharing, incompetence, and refund violations across multiple clients.
• Client Harm: Some clients lost money or opportunity for relief, though much harm preceded Smithwick’s direct involvement.

Mitigation

• 30+ Years Discipline-Free: Considerable weight; misconduct was isolated and brief.
• Full Cooperation: Voluntarily stipulated to all facts and culpability before formal charges were filed.
• Good Character Evidence: Four credible witnesses testified to his integrity, honesty, and community involvement.
• Community Service: Active volunteer for youth and education foundations; provided free legal consultations to seniors.
• Remorse and Restitution Efforts: Expressed genuine remorse and segregated $15,740 for client refunds.

Legal Analysis

The Review Department agreed with the hearing judge that Smithwick’s misconduct did not involve moral turpitude. However, it warranted discipline to preserve public confidence in the profession. The court rejected Smithwick’s claim of “good faith ignorance,” reiterating that attorneys have a non-delegable duty to know and follow ethical rules. Given substantial mitigation and the absence of dishonest or intentional conduct, the 60-day actual suspension was deemed sufficient to protect the public.

Sanctions Table

Final Order

• Actual Suspension: 60 days.
• Stayed Suspension: One year, with one year of probation.
• Restitution:
  • $1,800 + 10% interest to client Jerdie Harris (from June 30, 2009).
  • $13,940 to the Client Security Fund (credit for any direct payments to former clients).
• Conditions: Complete Ethics School, pass MPRE within one year, pay costs, and remain suspended until restitution is complete.

Key Takeaways

• Fee-sharing with nonlawyer corporations violates Rule 1-320(A) even absent bad intent.
• Ignorance of ethical reporting duties is not mitigating.
• Substantial mitigation—particularly a long, clean career and restitution—can outweigh multiple technical violations.
• Attorneys must supervise all client relationships, even when working through referral or marketing companies.