"THE COURT: . . . So the amended complaint—does the amended complaint
plead fraud with particularity?
"RESPONDENT: No, Your Honor. And it doesn’t plead fraud. It pleads the -- it
pleads the plan or scheme that we lay out in 132 to 149 without characterizing it."
These proceedings were open by phone line to as many as 8,000 journalists and
other members of the public. At the outset of the argument it was reported that at least
3,700 people had already dialed in.
It is considered a false and misleading statement under the Rules of Professional
Conduct to mispresent the status of a pending proceeding, whether in or out of court
(Matter of Zweig, 117 AD3d 96 [1st Dept 2014]; Matter of Napolitano, 78 AD3d 18 [2d
Dept 2010]; Matter of Passetti, 53 AD3d 1031 [3d Dept 2008]). Stating that a case
presents a fraud claim when it does not, is a false and misleading statement about the
status of a pending proceeding.
Respondent argues that there was no misconduct because he truthfully told the
court that day that there were no fraud claims. This defense rings hollow. Respondent’s
original position, that there was a fraud claim, was made despite an amended complaint
in which his very own client withdrew any fraud related claim. Respondent's own cocounsel represented, in respondent’s presence, that the plaintiff was not asserting a
fraud claim and there was extensive argument by opposing counsel. It is indisputable
that respondent had to be aware that there were no fraud claims in the case. Significant
time and effort were expended on respondent's false misrepresentations to the court
regarding the nature of the proceedings. This resulted in respondent’s arguments in
support of fraud appearing to be seemingly unanswered on the record and misleading
the listening public, because fraud was not a part of the case. Respondent’s so-called
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