Attorney is facing state bar sanctions
By John Joyce
Published in News on September 29, 2014 1:46 PM
A local attorney and former Superior Court judge is facing several complaints in connection with two divorce cases he allegedly mishandled.
Former District 8-A Senior Resident Superior Court Judge Jerry Braswell, who denies any wrongdoing, went before the Disciplinary Hearing Commission of the N.C. State Bar Sept. 12.
Braswell faces three complaints.
An order has not been entered in the case, said Dottie Miani, clerk for the Disciplinary Hearing Commission.
"I expect it any day now," she said.
According to the text of the complaint, the first charge stems from a 2012 divorce proceeding. The complaint alleges Braswell misinformed his client, Patricia Cobb, and mishandled the paperwork and notarization of the divorce.
As a result, the divorce was denied.
According to the complaint, Braswell's actions in the mishandling of the divorce violated several of the N.C. State Bar's Rules of Professional Conduct and he is subject to punishment under state Statute 84-28.
The second and third complaints are tethered and are connected to an alleged scam.
According to the complaint, Braswell was contacted in September 2012 via email by a woman in South Korea who identified herself as "Harmony Young" and claimed she was owed $941,000 in unpaid child support from her ex-husband, a Goldsboro resident.
The woman sent records from a South Korean court, written in English, titled "Separation Agreement," and "Decree of Divorce," the complaint said.
Braswell told Mrs. Young he would be required to file a civil action in Wayne County so that the foreign judgment could be incorporated in North Carolina.
According to the complaint, Braswell asked for a retainer of $3,500 and 5 percent of the collected child support as his fee.
On Sept. 26, 2012, Braswell received a signed retainer. Then, on Oct. 10, he received a Federal Express package containing a check purportedly issued by Chase Manhattan Bank in the amount of $298,900 with the memo: "Child, Medical and Spousal Settlement," the complaint said.
The check was unsigned, according to the complaint.
Braswell deposited the check on or about the same day and notified his alleged client via email.
Young responded within 35 minutes of the email instructing Braswell to deduct his fee from the check and to send the remainder to a bank account in Japan. The instructions said to have the bank date the check, "10 October before 12 p.m.," according to the complaint.
Braswell complied and instructed The Little Bank to wire $280,600, the full amount of the proceeds less his fee, to The Bank of Fukuoka Ltd. in Japan, the complaint said.
The check later proved to be counterfeit. The Little Bank's attempts to reverse the transaction were unsuccessful.
The complaint alleges that, when Braswell wired the money to Japan within hours of depositing the cashier's check, he instructed the bank to disburse funds against provisional credit extended upon deposit of a financial instrument that he could not have reasonably believed was certain to be honored.
Braswell's account, which before the deposit contained $13,266.72, could not cover the difference and a notice of insufficient funds was generated.
The complaint also alleges Braswell did not work on the actual case between the time he received the check and the time he sent the wire.
The third complaint arises from the insufficient funds notification.
Any bank account held by law firm is subject to scrutiny, according to the complaint.
Therefore, the attorney or firm is responsible for instructing the financial institution to notify the N.C. State Bar in the event there is a draft from the account that gets returned due to insufficient funds.
The complaint alleges Braswell held his account with The Little Bank for three years prior to the wiring of the fraudulent check to Japan, but never let the bank know of the N.C. State Bar mandate.
The complaint goes on to allege that Braswell also failed to keep and to maintain proper bank records, to reconcile accounts quarterly and to maintain his funds separate from those of his clients.
Several attempts were allegedly made by the N.C. State Bar to recover records from Braswell detailing his dealings with Mrs. Young and showing that he had replenished his account with The Little Bank. On three separate occasions beginning Oct. 22, 2012, Braswell responded to the state bar's requests but never with documentation proving he replenished the account.
The complaint asks for disciplinary action and for tax relief as appropriate.