BEFORE THE HEARING BOARD OF THE ILLINOIS ATTORNEY REGISTRATION AND DISCIPLINARY COMMISSION ANSWER TO ADMINISTRATOR'S COMPLAINT

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1 BEFORE THE HEARING BOARD OF THE ILLINOIS ATTORNEY REGISTRATION AND DISCIPLINARY COMMISSION In the Matter of: NICHOLAS SWIGERT LANE, Attorney-Respondent, Commission No. 2014PR00018 No ANSWER TO ADMINISTRATOR'S COMPLAINT Respondent, Nicholas S. Lane, by his attorney, Stephanie Stewart-Page ofthe Gloor Law Group, LLC, herby answers the Administrator's complaint in this matter, as follows: RESPONDENT'S STATEMENT PURSUANT TO COMMISSION RULE 231 A. Respondent was admitted to the U.S. District Court, Northern District of Illinois, in B. Respondent has never held any other professional licenses. COUNT I 1. On January 7, 1994, Gloria J. Bradford (know known Nadia Bilyk) ("Bilyk") caused a petition was filed in the Circuit Court of Cook County alleging that Janina Demkowicz, her aunt, was disable, suffering from dementia. The matter was entitled In re the Estate of Janina Demkowicz, case number 1994 P 169. Respondent admits the allegations of Paragraph One., ^ PILED MAR 25 ZQ14 ATTY REG &DISC COMM CHICAGO

2 2. On March 25, 1994, the Honorable Richard E. Dowdle entered an order appointing Bilyk plenary guardian ofthe estate and person ofdemkowicz. Respondent admits the allegations of Paragraph Two. 3. On March 7, 1999, Demkowicz died testate. Respondent admits the allegations of Paragraph Three. 4. On March 5, 2009, The Honorable Lynne Kawamoto appointed attorney Steven Mihajlovic as guardian ad litem for Demkowicz in case number 1994 P 169. Respondent admits the allegations of Paragraph Four. 5. On June 15, 2009, James Chesloe, an attorney retained by Bilyk, filed a petition to probate Demkowicz's will in the Circuit Court of Cook County. The matter was captioned as In re the Estate ofjanina Demkowicz, case number 09 P At that time, an order was entered naming Bilyk as independent administrator of Demkowicz's estate. Shortly thereafter, Bilyk terminated Chesloe. Respondent neither admits nor denies the last sentence of Paragraph Five due to lack of knowledge and demands strict proof thereof. The remaining allegations of Paragraph Five are admitted. 6. On October 6, 2009, Respondent agreed to represent Bilyk in matters related both Demkowicz's disabled person's estate and the decedent's estate.

3 Respondent admits that in about October, 2009, Respondent agreed to represent Bilyk in the disabled person's estate. The remaining allegations of Paragraph Six are denied. 7. On October 28, 2009, Bilyk filed a final accounting in case number 1994 P 169 for the time frame from January 1, 1994 to March 7, Seven due to lack of knowledge and demands strict proof thereof. 8. On March 23, 2010, Mihajlovic filed objections to the final accounting filed by Bilyk, referred to in paragraph seven, above, stating, in part, that there were financial deficiencies in the accounting. Eight due to lack of knowledge and demands strict proof thereof. 9. In April, 2010, Respondent filed his appearance as counsel for Bilyk as in cases number 1994 P169 and 09 P Respondent admits the allegations of Paragraph Nine. 10. On April 27, 2011, (sic) filed a response on behalf of Bilyk to the objections to final accounting referred to in paragraph 8, above. Respondent admits that on April 27, 2011, he filed a response on behalf of Bilyk to the objections to final accounting.

4 11. On June 9, 2011, Judge Kawamoto held a hearing regarding the objections to the final account in case number 1994 P 169. At that time, case number 1994 P 169 was continued until July 13, The July 13, 2011 court date was later stricken and case number 1994 P 169 was continued until August 23, Respondent admits the allegations of Paragraph Eleven. 12. On August 23, 2011, Judge Kawamoto awarded Mihajlovic fees in the amount of $6,100 in case number 1994 P 169 and continued the matter until September 22, 2011 for further discussions about settlement regarding purported deficiencies in the final accounting. Respondent admits the allegations of Paragraph Twelve. 13. On September 22, 2011, case number 1994 P 169 was heard regarding status of resolving the purported deficiencies in the final accounting. The matter was continued until October 3, Respondent admits the allegations of Paragraph Thirteen. 14. On October 3, 2011, case number 1994 P 169 was heard. At that time, Judge Kawamoto entered an order that the GAL was to file a petition specifying the amount of the alleged deficiency and for payment ofthe amount, plus attorney's fees. Respondent admits the allegations of Paragraph Fourteen.

5 15. Between October 6, 2010 and October 26, 2011, case number 09 P 3781 was heard by Honorable Susan Coleman for status on the resolution of issues concerning the final accounting in case number 1994 P 169. At that time, case number 09 P 3781 was continued until April 3, 2012 for status. Respondent was present in court and knew that the judge continued case number 09 P 3781 until April 3, Fifteen due to lack of knowledge ad demands strict proof thereof. 16. On October 24, 2011, Mihajlovic filed a petition for judgment against Bilyk and Hartford Insurance Company for $84,403.94, the purported amount ofthe deficiency. Respondent admits the allegations of Paragraph Sixteen. 17. On October 24, 2011, Judge Kawamoto entered a judgment against Bilyk in the amount of $14,214 in case number 1994 P 169 and order that the judgment be paid within 30 days of the court's order. Judge Kawamoto continued case number 1994 P 169 until December 13, 2011 for status on payment ofthe judgment. Respondent admits the allegations of Paragraph Seventeen. 18. Between December 13, 2011 and March 30, 2012, case number 1994 P 169 was heard by Judge Kawamoto regarding status on payment of the judgment. On March 30, 2012, attorneys for Hartford advised the court that a check for payment of the settlement had been tendered to Mihajlovic. At that time, Judge Kawamoto entered a judgment for $20,314 plus attorney's fees and costs against Bilyk in favor of Hartford and scheduled case number 1994 P

6 169 for May 3, 2012 for a status on closing Demokowitz's disabledperson estate. At no time did Respondent tell Bilyk ofthe judgment against her. Respondent denies the allegations of Paragraph Eighteen. 19. On April 3, 2012, case number 09 P 3781 was scheduled to be heard by Judge Coleman for a status report. Respondent did not appear for the status hearing. At that time, Judge Coleman continued case number 09 P 3781 until June 4, 2012 and furthered ordered Respondent to appear. Respondent received a copy ofthe order shortly after it had been entered. Nineteen due to lack of knowledge and demands strict proof thereof. 20. In April, 2012, Hartford Insurance Company, which had provided the surety bond to Bilyk in case number 1994 P 169, issued a check to Mihajlovic in the amount of $20,214, which was to pay to judgment against Bilyk and the court ordered legal fees to Mihajlovic. Respondent admits the allegations of Paragraph Twenty. 21. In April, 2012, Mihajlovic tendered to Respondent check number 427 which had been drawn on a Harris Bank account ending in the four digits 8304, and made payable to "Nicholas Lane, Attorney for the Estate of Demkowicz in the amount of $14,214. The proceeds of check number 427 represented the funds owed to the Demkowicz estate as a result of the judgment that had been entered against Bilyk. Respondent admits the allegations of Paragraph Twenty-One.

7 22. On April 5, 2012, Respondent deposited check number 427 into a Citibank Bank account ending in the four digits That account was entitled, "Law Offices of Nicholas Lane," (hereinafter "law office account") and was used by Respondent for business and personal purposes. The law office account was not a separate, identifiable account for the maintenance of funds belonging to clients or third parties, nor did the account title refer to the Demkowicz estate or in any other way indicate that funds on deposit were held in a fiduciary or escrow capacity. Respondent admits the allegations of Paragraph Twenty-Two. 23. On May 3, 2012, case number 1994 P 169 was heard by Judge Kawamoto for status closing the disabled person's estate. At that time, the matter was continued until June 14, Respondent knew or should have known that the case had been continued until June 14, Respondent denies that he knew that the case was continued until June 14, Respondent neither admits nor denies the remaining allegations of Paragraph Twenty-Three due to lack of knowledge and demands strict proof thereof. 24. As of July 13, 2012, Respondent had made no disbursements to or on behalf of Bilyk or the Estate of Demkowicz, nor had he received authorization from Bilyk to disburse the funds that he was holding for any purpose. Respondent admits the allegations of Paragraph Twenty-Four. 25. Between April 5, 2012 and July 13, 2012, Respondent drew checks or made other withdrawals from his law office account in payment of Respondent's own business or personal

8 obligations. As of July 13, 2012, Respondent's activities had overdrawn his business account by $ As a result, Respondent has used, without authority, $14,214 of assets belonging to the Demkowicz estate or its beneficiaries and thereby converted those funds. Respondent neither admits nor denies the allegation in Paragraph Twenty-Five that he converted the funds, as that allegation is a legal conclusion and no answer is required. Respondent admits the remaining allegations in Paragraph 25. In further answering, Respondent repaid the $14,214 to the estate in November, 2013, prior to the Administrator's complaint being filed in this matter. 26. Between August 1, 2012 and March 20, 2013, case number 1994 P 169 Judge Kawamoto entered at least seven orders in case number 1994 P 169 scheduling the status on closing the disabled person estate and ordering Respondent to appear. matter for Respondent received notice of each of those court dates and a copy of each order, but did not appear for any ofthe status hearings. Twenty-Six due to lack of knowledge and demands strict proof thereof. 27. By reason of the conduct described above, that occurred after January 1, 2010, Respondent has engaged in the following misconduct: a. failure to act with reasonable diligence and promptness in representing a client by repeatedly missing court dates in case numbers 1994 P 169 and 09 P 3781, in violation of Rules 1.3 ofthe Illinois Rules of Professional Conduct (2010); b. failure to hold property (funds belonging to the Demkowicz estate), of a client or third persons (Demkowicz estate) that is

9 in the lawyer's possession in connection with a representation in a client trust account separate from the lawyer's own property, by depositing the funds in a business account and later converting the funds by drawing the balance in the business account below the amount he received, in connection the representation, thereby converting that property, violation of Rule 1.15(a) of the Illinois Rules of Professional Conduct (2010); conduct involving dishonesty, fraud, deceit or misrepresentation, by virtue of his conversion and unauthorized use of Demkowicz's assets for his own purposes, in violation of Rule 8.4(c) of the Illinois Rules of Professional Conduct (2010). Twenty-Seven as they constitute legal conclusions and thus no answer is required. To the extent that any answer is deemed necessary, the allegations are denied. WHEREFORE, Respondent Nicholas S. Lane, respectfully requests that the complaint be dismissed and for any other reliefthe Panel deems just. Respectfully Submitted, Stephanie L. Stewart-Page GLOOR LAW GROUP, LLC. 225 West Wacker Drive Suite 1800 Chicago, Illinois / / Fax #