Did devotion to work play role in Sidley partner's faked fares? Suspension, treatment recommended
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A Sidley Austin partner who earned $3.5 million in his final year at the law firm is facing a possible one-year suspension for faking more than $69,000 in cab expenses.
The Hearing Board of the Illinois Attorney Registration and Disciplinary Commission recommended the one-year suspension, along with one year of psychiatric treatment, for Lee Smolen, who is now a partner in the Chicago office of DLA Piper. The Am Law Daily (sub. req.), the Legal Profession Blog and Crain’s Chicago Business have stories; the Jan. 7 report and recommendation are here.
Sidley’s general counsel, William Conlon, investigated the cab fares after a request by the firm’s executive committee. Conlon said he found the fares unusual because Smolen had told him he drove to work. Conlon found that Smolen parked his car in the parking garage nearly every day that he charged $70 to $80 for cab fare. Conlon said that, as far as he can recall, Smolen admitted his conduct was wrong, but said he felt entitled to the money because he came in early, stayed late and did a lot of practice development, the hearing report said.
An audit by KPMG identified about $69,800 in unacceptable cab expenses submitted by Smolen, and questioned $379,000 in additional reimbursed expenses, according to the hearing report. Smolen agreed the firm could withdraw $400,000 from his account to cover the expenses and the cost of the KPMG investigation.
Smolen testified he used the cab money to pay for client entertainment when he used cash without having to take time to make out the expense reports. He wanted more time to spend with family, he said, after his mother became seriously ill.
Psychiatrists testifying on Smolen’s behalf said he had generalized anxiety disorder, depressive disorder and obsessive compulsive personality disorder while at Sidley. Both found some link between the psychiatric problems and his conduct; one said the OCD made Smolen excessively devoted to work.
Smolen slept only three or four hours a night and typically spent 12 to 15 hours a day at work, according to testimony before the hearing board.
The hearing board also noted that Smolen did not charge his false expenses to his clients, he admitted wrongdoing, and he was remorseful.
DLA Piper submitted a statement to the Am Law Daily about the case. “The ARDC decision does not come as a surprise to us, and we stand by our original statement that, after our own due diligence and a thorough review of the facts, we decided to give great weight to the total body of Lee’s work over his 25-plus years as a lawyer,” the statement said. “We believe he has taken the right steps to move forward, and we support him as he continues in this process.”
DLA previously said it is closely monitoring Smolen’s billable hours and expenses.
Related articles:
ABAJournal.com: “DLA says it keeps a tight rein on partner who admits faking $69K in cab receipts at prior firm”
ABAJournal.com: “Ex-Sidley partner says $69K cab-fare reimbursement was used for firm-related purposes”
ABAJournal.com: “Ethics case launched over $69K in cab fare reimbursement for former partner”
