A Chicago real estate lawyer convicted for fraud has been suspended from practicing law in the state of Illinois.
The Illinois Supreme Court suspended the law license of Carlo P. Palladinetti, belonging to Palladinetti & Associates, indefinitely on Nov 21.
He had been convicted of allegedly promoting a scheme to cheat mortgage ledgers out of $1.5 million in loans taken out by bogus condo purchasers. The decision comes three months after a request by him for a new trial was denied by a Chicago judge.
The suspension of Palladinetti was one of the 16 disciplinary actions announced by the state’s high court against Illinois-based lawyers. The high court is the overseeing authority over those who practise law in the state of Illinois.
In its latest announcement, it has ordered three lawyers to be disbarred and 13 others to be suspended for varying lengths of time.
According to available court filings, Palladinetti had been licensed to practice law in the state for around three decades before he was indicted in 2013 for his participation in the allegedly fraudulent scheme.
Palladinetti Provided Legal Support For A Fraudulent Scheme
Prosecutors have alleged that starting from 2015, Palladinetti offered legal support to his co-conspirators for fraudulently approving fake condominium buyers for mortgage loans.
The indictment states that Palladinetti helped create and submit contracts that contained “false and fraudulent information” on property sale prices and also with respect to earnest money paid by buyers.
Palladinetti was subsequently convicted in a trial before U.S. District Judge Virginia M. Kendall in March 2016.
Palladinetti later asked for a retrial on the grounds that he had been inadequately represented by his attorney, and indicated that he had unknowingly signed a stipulation regarding his conviction. His request was denied by Judge Kendall in August.
The state Supreme Court suspended his law license temporarily until further court orders.
Three Others Disbarred For Misconduct
The three other disbarred attorneys were Jeffrey L. Schlapp, Beth C. Otero, and Lance Haddix, all belonging to Chicago.
- Schlapp, a practicing lawyer since 2006, filed several lawsuits in Cook County courts against nursing homes, accusing them of negligence, neglect and malpractice, with respect to patient skin conditions , falls, as well as death.
Legal regulators for the state initiated disciplinary action against Schlapp accusing him of embezzling “more than $600,000 from at least nine different clients” represented by him in nursing home cases.
- Otero has been disbarred for misappropriating over $20,000 of client money kept in escrow with respect to real estate deals. The court also noted that Otero had “fabricated court pleadings” and had continued practicing law despite orders to cease.
- Haddix was disbarred as a part “reciprocal discipline” after he was first disbarred in the state of California for flouting the terms of a professional probation
Twelve Other Lawyers Were Suspended For Various Terms
Twelve others were suspended for various terms
- Christopher D. Olander, from Odenton, Md., has been suspended as reciprocal discipline in light of the Maryland state high court suspending him indefinitely for failing to address client matters and taking a retainer of $11,000 “prior to earning the fee.”
- Syed M. Khan, of Schaumburg, suspended temporarily for failing to attend to two client matters and to refund unearned fees
- Babette P. Salus, of Springfield, suspended on an interim basis for “conduct involving neglect, failed to refund unearned fees, commingled client funds” and for false statements to state attorney regulators
- James Lisonbee, of Lincoln, Neb., suspended for three years in reciprocal discipline after the Nebraska Supreme Court suspended him “mishandling two client cases”
- Joseph E. Pecko, of Burr Ridge, suspended for one year after being convicted of driving under the influence of alcohol
- Julie Ann Meyer, of Chicago, suspended for one year not complying with “discovery deadlines in two cases”, which resulted in a summary judgment against one client and monetary fine in another case
- Sarah J. Haasis, of Sterling, suspended for six months, for submitting two applications with false information regarding previous employment to the Illinois Department of Transportation
- Edward C. Abderholden, of Chicago, suspended six months for not complying with the terms of a prior probation