Valencia, CA 91355
15 August 2010 | Disbarred (14 years, 10 months ago) Disbarment 06-O-15376 |
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12 March 2010 | Not eligible to practice law in CA (15 years, 3 months ago) Ordered inactive 06-O-15376 |
19 January 1999 | Admitted to the State Bar of California (26 years, 5 months ago) |
August 15, 2010 LAINE EDWIN HEDWALL [#200371], 48, of Valencia was disbarred Aug. 15, 2010, and was ordered to comply with rule 9.20 of the California Rules of Court. Hedwall stipulated to 35 counts of misconduct in eight cases, including misappropriation of more than $278,000 from several clients. He did not resolve four divorce cases.In one matter, in which he represented the wife in a divorce case, he deposited the proceeds from the sale of his client’s home – $205,107 – into a bank account designated the Hedwall account. He transferred $150,000 to buy a 90-day CD that he deposited in an account designated the CD account. He deposited the remaining funds in a money market account and then took $50,000 of that money to pay his legal fees and to pay parties unrelated to the clients.When the CD matured, that account held $156,448, all belonging to the client and her husband. Hedwall took $96,581 of that money for himself. The money market account eventually held only $62. Hedwall ultimately misappropriated $205,107 from his client and her husband, who later reconciled.He told the client he had invested the money, although by that time he had spent it all. When contacted by a sheriff’s detective, Hedwall said his client had authorized him to place the money in an investment account. He later asked the client to sign a document stating that she agreed with the way Hedwall handled her money. She refused.Although Hedwall eventually gave his client a cashier’s check for $175,586, he kept more than $29,500 as legal fees.In another matter, Hedwall misappropriated $54,225 from clients who were involved in civil litigation regarding their home. They lost their case and a judgment of $29,000 was entered against them. One client gave that amount to Hedwall to pay the judgment. They also had given him $149,705 to hold in trust for distribution to the clients or their creditors. Hedwall distributed more than $95,000 and was required to hold $54,225 in trust for the clients; he did not do so.When a new lawyer asked Hedwall to account for the money, he said he had made arrangements with various collection agencies for automatic withdrawals to pay his clients’ bills. His statement was not true.In another divorce matter, the court ordered Hedwall’s client to place $15,000 in his trust account. When the client reconciled with her husband, the balance in Hedwall’s trust account was $634 and later fell to $90.34. He told the court he still had the money in his trust account and asked for authorization to take his legal fees. The court denied his motion and he didn’t return the money.In mitigation, Hedwall had no prior discipline record. |