In Re Freiburghouse

THE COURT.

Wayne M. Freiburghouse, an attorney admitted to practice law in this state, was charged with four counts of grand theft and three counts of forgery of endorsements in connected transactions. He pleaded guilty to two counts of grand theft involving sums aggregating $20,000, and the other counts, which involved the taking of an additional $16,000, were dismissed. Probation was denied, and he was sentenced to prison for the term prescribed by law.

Upon the filing of the record of conviction under sections 6101-6102 of the State Bar Act, Freiburghouse was suspended from practice and directed to show cause why a final order of disbarment or suspension should not be made. Following the filing of his written return to the order to show cause, the matter was referred to The State Bar for recommendation as to the discipline to be imposed. A hearing was had before a local committee of the bar, which recommended that the

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interim suspension order made by this court should be continued indefinitely, without prejudice to Freiburghouse’s right to apply for reinstatement. The record before the local committee includes a transcript of the proceedings at the probation hearing in the criminal action, a transcript of the hearings in a disciplinary proceeding which was discontinued when Frieburghouse was convicted of grand theft, various letters and some medical reports. The Board of Governors reviewed the evidence presented before the local committee and recommended that Freiburghouse be disbarred.

Freiburghouse had been a successful attorney and enjoyed the respect and confidence of the people in his community. In 1953 he appropriated to his own use and lost in gambling $4,000 which had been entrusted to him for investment. In 1954 a client gave him a check for $16,000 for deposit in escrow, and Freiburghouse forged the endorsement of the payee’s name on the check, misappropriated the proceeds, and lost a large portion of the money in gambling. These two transactions formed the basis for the criminal convictions.

In explaining his misconduct Freiburghouse made the following statements. In 1952 he borrowed $45,000 from a client on an unsecured note for use in a business venture which had not been successful. He became “obsessed with the necessity” of securing money to repay the client, and a “goodly portion” of the $45,000 was spent in gambling in an effort to accumulate enough to pay the debt. About the time the last of the $45,000 was spent, Freiburghouse was holding $22,000 for investment. This money was misappropriated and was also spent in gambling for the purpose of attempting to secure enough to repay his obligations. In May 1954 he called in the parties concerned, told them what had occurred and was given another chance. He paid off about $10,000 of the debts, and then “by some overwhelming compulsion” he was “impelled” to take another $16,000 which had come to him in a business transaction. Nearly $14,000 of this money was lost in an hour at Las Vegas.