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3/25/04 See News Release 30 for any corrections or dissents. SUPREME COURT OF LOUISIANA NO. 03-B-2899 IN RE: PAUL E. GRAUGNARD ATTORNEY DISCIPLINARY PROCEEDINGS PER CURIAM
This disciplinary matter arises from formal charges filed by the Office of Disciplinary Counsel ("ODC") against respondent, Paul E. Graugnard, an attorney licensed to practice law in Louisiana.

FORMAL CHARGES The ODC filed two sets of formal charges against respondent. The first, consisting of one count and bearing the disciplinary board's docket number 99-DB112, was filed on October 29, 1999. The second set of formal charges, bearing the disciplinary board's docket number 00-DB-113, was filed on September 8, 2000 and encompasses three counts of misconduct. The two sets of charges were consolidated by order of the hearing committee chair dated October 26, 2000.

99-DB-112 The Hatten Matter In August 1997, respondent received a $9,000.00 personal injury settlement on behalf of his clients, Robert Hatten and Mary Ann Loup. Respondent endorsed his clients' names on the settlement check and deposited it into his client trust account. Thereafter, respondent withdrew the funds and placed them into a personal account. Respondent failed to remit to Mr. Hatten his portion of the settlement, amounting to $5,000.00, despite receiving numerous inquiries from Mr. Hatten concerning the

funds. On December 18, 1998, respondent gave sworn testimony to the ODC in which he claimed that he had disbursed the settlement funds to Mr. Hatten by check drawn on a Minden, Louisiana bank. However, no such distribution had ever been made, and Mr. Hatten has not received his settlement funds. The ODC alleged that respondent's conduct violated the following provisions of the Louisiana Rules of Professional Conduct: Rules 1.15(a)(b)(d) (safekeeping property of clients or third persons), 8.1(a) (knowingly making a false statement of material fact in connection with a disciplinary matter), 8.1(c) (failure to cooperate with the ODC in its investigation), 8.4(c) (engaging in conduct involving dishonesty, fraud, deceit, or misrepresentation), and 8.4(d) (engaging in conduct prejudicial to the administration of justice).

00-DB-113 Count I

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Louisiana Law