On Tuesday, October 7, 2025, the Supreme Court of California disbarred attorney Stephen John Armstrong, State Bar Number 208047, effectively removing him from the roll of attorneys authorized to practice law in the state. This action follows a decision and order of involuntary inactive enrollment issued by the State Bar Court of California on June 27, 2025, in case number SBC-24-O-30806-YDR.

The State Bar Court’s decision, presided over by Judge Yvette D. Roland, stemmed from 34 counts of misconduct alleged against Armstrong. These charges, detailed in a Notice of Disciplinary Charges (NDC), were not addressed by Armstrong, leading to the entry of his default. Subsequently, the Office of Chief Trial Counsel of the State Bar of California (OCTC) petitioned for disbarment, citing Rule 5.85 of the Rules of Procedure of the State Bar, which outlines the protocol for attorneys who fail to participate in disciplinary proceedings after adequate notification.

The court found that all procedural requirements under Rule 5.85 had been met. The OCTC demonstrated that the NDC was properly served on Armstrong via certified mail at his official State Bar records address on October 29, 2024, explicitly warning that failure to participate could result in a disbarment recommendation. Further, the OCTC exhibited reasonable diligence in notifying Armstrong, including a phone conversation on October 30, 2024, where Armstrong reportedly acknowledged receiving the NDC and expressed his intent to resign. This conversation was followed by an email containing a courtesy copy of the NDC, to which Armstrong replied, stating his intention not to respond to the charges.

Armstrong’s failure to respond to the motion for entry of default led to its approval on January 9, 2025. The court also ordered Armstrong’s involuntary inactive enrollment as an attorney, effective three days after service of the order, in accordance with Business and Professions Code section 6007, subdivision (e). He remained inactively enrolled since that time.

The court deemed the factual allegations in the NDC as admitted due to Armstrong’s default. These allegations included multiple instances of violating the Rules of Professional Conduct and Business and Professions Code section 6106, involving moral turpitude and misappropriation of client funds. The cases cited in the NDC included matters involving David Turner/TNT Management Ltd., Kimberly Renee, Kevin Farmer/Kafcon Co., Inc., Gordon Beattie, Stephanie Pyle, and Jim Schilling/Pacific Coast Construction & Waterproofing.

The allegations ranged from designating non-refundable fees improperly, failing to deposit client funds in trust accounts, misappropriating funds, failing to promptly disburse funds, and failing to account for client funds. Additionally, Armstrong was accused of unauthorized practice of law in Texas and failure to cooperate with State Bar investigations.

In light of these findings, the State Bar Court recommended Armstrong’s disbarment and also suggested monetary sanctions of $5,000, citing the multiple acts of misconduct, failure to cooperate with investigations, and the guidelines set forth in Rule 5.137.

The Supreme Court’s order mandates that Armstrong make restitution to Kimberly Renee ($7,500), Kevin Farmer ($5,000), Gordon Beattie ($5,000), Stephanie Pyle ($2,400), and Jim Schilling ($10,001), each with 10 percent interest per year from specified dates in 2023 and 2024.

He is also required to comply with California Rules of Court, Rule 9.20, regarding notification to clients and other relevant parties within 30 and 40 days of the order’s filing. Furthermore, Armstrong must pay $5,000 in monetary sanctions to the State Bar of California Client Security Fund and cover the costs of the disciplinary proceedings.

According to Avvo, Mr. Armstrong was a real estate lawyer in Palm Desert, CA. He acquired his law license in California in 2000.

A copy of the original filing can be found here.