The State Bar of California has filed discipline charges against a Bay Area lawyer who bilked clients of $400,000 from PG&E meant to pay damages from a 2006 Yolo County wildfire.
William J. Reed, 74, was charged Dec. 4 with nine counts of misconduct and must respond within 20 days. In the meantime, the State Bar has placed a consumer alert on Reed’s attorney profile.
Reed held town hall meetings in Yolo County offering to represent people whose property was damaged in the Sept. 22, 2006, Zamora Fire.
Eventually, Reed represented several ranching families, including John and Elisabeth Stone, Herb and Marlene Schuler and Kristin Turner, whose property was damaged in the grassland fire caused by downed power lines.
Reed won a $400,000 settlement from PG&E but his clients have yet to be paid the money they are owed.
Reed also faces felony charges in Contra Costa County, for which he was arraigned in April.
Following recent fires in the North Bay and in light of the still-burning fires in Southern California, the State Bar issued a fraud alert warning fire victims of unscrupulous lawyers and what to watch out for in such cases.
Additionally, the State Bar posted a notice to attorneys about their ethical obligations following a disaster.
As a result of California’s ongoing fires, many people may wish to seek legal advice for various reasons, including insurance disputes, seeking Federal Emergency Management Agency assistance, employment issues, landlord tenant disputes, consumer fraud and more.
California law prohibits lawyers or others acting on behalf of a lawyer from:
* Soliciting clients at an accident scene, at a hospital, or on the way to a hospital;
* Soliciting clients who, due to their physical, emotional or mental state, may not be able to have reasonable judgment about the hiring of an attorney;
* Seeking clients by mail unless the letter and envelope are clearly labeled as an advertisement; and
* Promising a particular outcome from the legal representation.