On Friday, February 27, 2026, the California Supreme Court disbarred attorney Charles Z. Stein, ordering that his name be stricken from the roll of attorneys following findings that he intentionally misappropriated millions of dollars while acting as an escrow agent in a failed COVID-19 vaccine transaction.
The case is entitled “In the Matter of Charles Z. Stein,” with case number S294571.
The high court’s order adopted the State Bar Court’s recommendation and imposed additional requirements, including compliance with notification rules, payment of $5,000 in monetary sanctions to the Client Security Fund, and liability for disciplinary costs.
The State Bar Court’s Review Department opinion, which formed the basis for the discipline, detailed Stein’s role as escrow agent and paymaster in a $12.2 million agreement involving the attempted purchase of AstraZeneca COVID-19 vaccines. The court found that Stein was entrusted with funds deposited by Radical Investments Ltd. (RIL) and was required to hold and distribute them strictly in accordance with escrow instructions.
Instead, the court concluded that Stein intentionally misappropriated $6.725 million by making unauthorized disbursements to third parties, including millions sent to entities associated with the transaction and $40,000 to himself. These payments were made without the knowledge or consent of RIL and in violation of the governing agreements, which required specific conditions to be met before any funds could be released.
The opinion emphasized that Stein acted in a fiduciary capacity and owed duties not only to his client but also to non-client parties to the escrow. It found that he failed to maintain entrusted funds in his trust account, engaged in acts involving moral turpitude through intentional misappropriation, and breached fiduciary duties by favoring one party, withholding material information, and failing to remain neutral.
The court also cited evidence of concealment, including Stein’s refusal to provide wire confirmations, misleading statements about disbursements, and private communications indicating his awareness that the transfers violated the escrow terms. In one instance, he falsely told a party that no confirmation existed while simultaneously sharing proof of transfers with another participant.
RIL ultimately received only about $5.47 million back from the account, while more than $5 million remained unrecovered, and no vaccines were ever delivered. The company also incurred significant legal costs in attempting to recover its funds.
In assessing discipline, the State Bar Court found multiple aggravating factors, including significant financial harm, repeated misconduct, and Stein’s lack of insight into his wrongdoing. Although mitigation evidence included strong character testimony, community service, and no prior discipline, the court determined these factors did not outweigh the seriousness of the misconduct.
Applying standards governing attorney discipline, the court concluded that disbarment was the presumed sanction for intentional misappropriation and was necessary to protect the public and maintain confidence in the legal profession.
According to Avvo, Mr. Stein was a real estate lawyer in North Hollywood, CA. He acquired his law license in California in 2009.
A copy of the original filing can be found here.
