On Wednesday, March 22, 2023, the Chief Justice of the Supreme Court of California ruled on the disciplinary charges against Los Angeles attorney David L. Kagel pursuant to the State Bar’s petition seeking Kagel’s disbarment for failure to file a timely response to the disciplinary charges and failure to have the default set aside within the period prescribed.

The case is styled “In the Matter of David L. Kagel,’ and was brought by the Office of Chief Trial Counsel, under case no. SBC-22-O-30016.

The charges cited Kagel’s violation of Rukes 1.15 of the Rules of Professional Conduct.

The California Rules of Professional Conduct can be found here.

According to the Notice of Disciplinary Charges, Kagel was hired to represent Benjamin Oren to facilitate a purchase of stocks by Oren’s company from Custodian Ventures LLC, a company represented by David Lazar on October 5, 2020. Oren agreed to purchase $120,000 worth of shares from Custodian Ventures LLC, and he gave the full $120,000 to Kagel to be wired the following day to Lazar.

It was alleged that Kagel failed to deposit and maintain the funds in a trust fund for the benefit of Oren, misappropriated the remaining funds, intentionally misrepresented to Oren that he had deposited the funds in a client trust account, failed to pay client funds promptly and failed to render accounts of client funds.

The filing states:

“On or about October 26, 2020, Oren sent respondent a text message requesting that respondent sent Oren a photograph of the written confirmation of the deposit made on behalf of Custodian Ventures LLC, and informing respondent that Lazar had informed Oren that only $95,00 had been received. Respondent asserted to Oren that respondent had spoken with Lazar and obtained Lazar’s consent to receive $95,000 that day and the remaining $25,000 later that week. Oren asked respondent why respondent had not sent the full amount as agreed; respondent replied that “[respondent] needed $25,000 to close [respondent’s] deal” and would send the balance of the purchase price later that week.”

The filing continues:

“On or about October 30, 2020, Lazar sent respondent a text message confirming that respondent had expressed his intention to forward to Lazar the balance of the purchase price. Respondent replied to Lara’s text message with a text message in which respondent asserted that respondent was“closing a 100-million-dollar deal” and would pay Lazar an additional $5,000 for Lazar’s patience.”

The filing further alleges:

“On or about December 3, 2020, Custodian Ventures LLC withdrew from the Stock Purchase Agreement and returned to Oren the $95,000 received from respondent.

To date, respondent has not repaid to Oren the $25,000 that Oren was entitled to receive.”

Timothy G. Byer, Senior Trial Counsel for the State Bar of California, stated in their Petition that Kagel failed to respond to the Notice despite proper service, hence, the State Bar moved for entry of default. However, Kagel again failed to file a written response to the motion for entry of default.

Upon satisfying the requirements for a mandatory disbarment recommendation, the State Bar sought Kagel’s disbarment.

Accordingly, the Court ruled against Kagel and entered an order disbarring the latter for failing to file a response to the Notice of Disciplinary Charges and failing to file a motion setting aside the default within the prescribed period.

The disposition reads:

“The court orders that David L. Kagel (Respondent), State Bar Number 58961, is disbarred from the practice of law in California and that Respondent’s name is stricken from the roll of attorneys.”

Kagel was also ordered to pay monetary sanctions to the State Bar of California Client Security Fund in the amount of $5,000.

According to his LinkedIn page, Mr. David L. Kagel earned his Juris Doctorate from Brooklyn Law School, graduating in 1964. He has been licensed in California.

A copy of the original filing can be found here.