2004AP60-D In the Matter of Disciplinary Proceedings Against Charles K. Krombach, Attorney at Law

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“The referee reached an entirely different conclusion concerning Attorney Krombach’s intent after the July 1999 sale of the Cedarburg property. From this point forward the referee concluded that Attorney Krombach in many instances was simply stealing the LLC’s money. Attorney Krombach was unable to produce invoices or other documentation to justify his payments to himself or his purported disbursements to John M. Moreover, Attorney Krombach’s alteration of documents and his “shifting explanations” for these payments indicate that Attorney Krombach was simply converting his clients’ money for his own personal needs.

“The referee concluded that Attorney Krombach’s reliance on alleged oral authorizations by John M. was further evidence of Attorney Krombach’s wrongful intent. By this time John M. was suffering from active alcoholism, such that his son was appointed to act as his guardian. Thus, Attorney Krombach’s own statements, even if true, would indicate that he was manipulating a vulnerable client to cover his taking of funds.

“Furthermore, the referee notes that even Attorney Krombach’s excuse of oral consent from John M. cannot cover the taking of nearly $12,700 that occurred after John M.’s death. Instead, Attorney Krombach attempted to hide what he had done by altering documents and making up the incredible story that John M. had agreed to a retroactive increase in Attorney Krombach’s hourly rate.

“In sum, as the referee noted, ‘what may have begun as sloppiness and poor judgment eventually became outright theft.’ In addition to the items described above (manipulation of a vulnerable client and alteration of documents to mislead the OLR), the referee found other aggravating factors that support a more serious level of discipline. The amount of money taken by Attorney Krombach was substantial, especially in light of the limited finances of his clients. Moreover, Attorney Krombach, despite expressing an intent to reimburse what he took, has not made any attempt to pay back anything. The referee found that, although Attorney Krombach has stipulated to wrongdoing and has admitted regret, he still has not demonstrated an understanding that what he did was steal from his clients. Although he has no documentation to support many of the payments to himself, he continued to express the idea that his mistakes were due to sloppy practices, including his practice to ’round off’ his legal fees. Moreover, his restitution brief to the referee seemed to indicate that, at the end of the day, he owed his clients nothing. This does not demonstrate an acceptance of responsibility.”

It is ordered that attorney Krumbach’s license to practice law be revoked and that he pay restitution in the amount of $27,135.

Office of Lawyer Regulation; Per Curiam)

Attorneys:

For Appellant: Charles K. Krombach, Brookfield.

For Respondent: Charles S. Blumenfield, Milwaukee