Referee: 6-month suspension for Oak Creek attorney

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A referee is recommending that an Oak Creek attorney’s license be suspended for six months.

The recommendation stems from a complaint the Office of Lawyer Regulation filed in December 2016 alleging that Karene Marchan broke eight Wisconsin Supreme Court rules governing attorney conduct while representing an Oak Creek woman in a divorce case.

According to the allegations, Marchan failed to return more than $76,000 to the client despite being ordered to do so by a Milwaukee County Circuit Court judge. The OLR also alleged that Marchan charged unreasonable fees, made prohibited cash withdrawals from her trust account, failed to communicate and with the client, and failed to cooperate with the OLR’s investigation once the client had filed a grievance.

The OLR had initially asked the high court to suspend Marchan’s license for nine months and order her to pay more than $76,000 in restitution to her client.

After the OLR filed a motion for default in March, Marchan appeared at a scheduling conference and responded to the complaint. She and the OLR eventually reached a stipulation.

Because Marchan paid the more than $76,000 due to the client before the parties reached the agreement, the OLR walked back its request for restitution and agreed in August to a shorter license suspension of six months.

The referee in the case, James Winiarski, filed a report on Tuesday recommending accepting the license suspension agreed upon by the parties and agreeing with the OLR’s argument that Marchan must prove that she is fit to practice law. The six-month license suspension requires Marchan to petition the court for reinstatement before she can resume her practice.

However, Winiarski noted that although he agreed that the six-month suspension was appropriate, he did not agree with OLR’s reasoning for it. Winiarski wrote that he disagreed with OLR’s contention that Marchan had “abandoned” the client, noting that the client had tried to fire Marchan, who later tried to withdraw from the case because of the fee dispute.

Winiarski also recommended that Marchan pay the full cost of the proceeding.

Marchan may choose to appeal Winiarski’s report. Whatever she chooses to do, the Wisconsin Supreme Court will review his recommendations and issue a final decision in the matter. Follow @erikastrebel