Stephen Moskowitz

January 10, 2002

STEPHEN MARK MOSKOWITZ [120917], 53, of Castro Valley was suspended for six months, stayed, placed on two years of probation with an actual 30-day suspension and was ordered to take the MPRE within one year. The order took effect Jan. 10, 2002. Moskowitz stipulated to misconduct in five consolidated matters. In the first, he signed a $10,000 fee agreement to prepare an opinion dealing with the taxability of funds his clients received in settlement of a lawsuit. The fee agreement stated that the $10,000 was a non-refundable "true retainer" for availability of services, but also constituted payment for Moskowitz' work, charged against his hourly rate. When the IRS notified the couple that the settlement funds were taxable, Moskowitz demanded and received another $10,000 to challenge the ruling. The clients later fired Moskowitz, before he had earned the fee. He did not refund the unearned fee, and the clients sued him. In another matter in which Moskowitz charged three clients advance fees, he did not disclose those fees to the bankruptcy court, a violation of bankruptcy court rules. He says that he acted on the advice of an attorney he regularly worked with who represented himself as a bankruptcy specialist. Moskowitz did not promptly refund advance fees in two other matters and failed to respond to another client's status inquiries. In mitigation, Moskowitz has no prior record of discipline, he has an extensive record of pro bono work and he cooperated with the bar's investigation. He also relied on the advice of his attorneys concerning the refunds.