FOX 6 News Milwaukee, WI - August 29, 2005
You might think when a lawyer commits a crime, he loses his license.
Not in Wisconsin. At least, not right away.
In some cases, not for years.
Ask almost anyone who's been in a crash. You don't have to find a lawyer. Lawyers will find you.
"The accident was on Friday," says Milwaukee driver Mary Nadeau, "and the following Thursday mail was full."
Lawyers who'd seen her accident report on file with police flooded her mailbox with letters and brochures, hoping to get her business.
"You think they care if I'm suffering everyday?" Nadeau asks. "They don't even know that. They could care less. It's dollar signs."
Among the solicitors was the law firm of Hausmann-McNally. The firm's glossy, 27-page brochure urges her to hire a lawyer she can trust. It just fails to mention that the firm's lead partner is an ex-con.
Charles Hausmann heads one of the largest personal injury firms in Milwaukee. He also spent 60 days in federal prison for defrauding more than 200 clients. But, he's never lost his license. In fact, until Tuesday (August 30, 2005), the Wisconsin Bar Association still listed him in "good standing."
"Why has he even got his license?" Nadeau asks. "If he did time already, shouldn't his license have been suspended already then?"
Our neighbors in Illinois and Michigan automatically suspend lawyers who commit crimes, at least temporarily.
Not Wisconsin.
"This does not generate confidence on the part of the public in the legal profession in my opinion," says Michael Hupy, another personal injury lawyer in town -- and a regular Hausmann critic since his conviction.
Hupy used a recent company newsletter to criticize state regulators for failing to act more quickly to protect the public.
"I cannot imagine what they would need to do after a guilty plea that would take 3 years," Hupy said.
It was 2002 when a federal grant jury first indicted Hausmann for running a kickback scheme with a local chiropractor, Dr. Scott Rise. Court records show Hausmann referred a stream of new clients to the doctor. In return, the doctor kicked 20-percent of his take back to businesses Hausmann chose.
Dr. Rise was also convicted of mail and wire fraud in federal court, and the state's medical board disciplined him 2 years ago. But, for 3 years after Hausmann pleaded guilty, the state's Office of Lawyer Regulation did nothing to limit or suspend his ability to practice.
"That's outrageous!" says Suzanne Blonder, an expert on lawyer accountability for HALT. That's a non-profit legal watchdog group in Washington.
"This is the kind of discipline case that's a no-brainer. Once the guy has been convicted of defrauding 200 clients, and has pleaded guilty to that charge, and has served time in prison for that charge, then that's discipline that needs to be rendered swiftly."
HALT actually ranks Wisconsin's Office of Lawyer Regulation (OLR) among the best attorney discipline systems nationwide, overall. But, it ranks Wisconsin second worst in terms of speed. Second only to Massachusetts.
HALT's ranking is based on data from the American Bar Association, which shows Wisconsin takes an average of 76 days to dismiss a complaint against a lawyer. But, it take 548 days to bring disciplinary charges. And, 674 days to actually hand down punishment. That's almost two years, on average, to suspend or revoke a lawyer's license.
"It's really a glacial pace of discipline in Wisconsin," Blonder says. "It's something we'd like to see improve next time around."
OLR Director Keith Sellen argues that HALT is relying on two-year-old data. "If your story suggests this is a current problem," Sellen warned, "I think you're making a significant error."
Sellen points to the OLR's most recent annual report which shows they've reduced the number of cases pending more than a year from 461 in 2002 to just 252 in 2004.
But he admits the discipline process takes time.
Complaints are first reviewed by the OLR staff. Then, they go to a district committee. Then, a preliminary review committee. They're assigned to a referee. Who reports to the Supreme Court. Which holds hearings. And finally decides upon an appropriate sanction.
"There are too many layers in this bureaucracy," Blonder says, "and, frankly, it's hampering the system."
Sellen says each step is vital to protect both the public, and the lawyer's right to practice.
Charles Hausmann is finally losing his license. His suspension takes effect Tuesday, August 30th. For one year. It's one of the most lenient punishments we could find for a Wisconsin lawyer convicted of a crime related to his practice.
"If I stole something from work, I'd be gone," Nadeau says. "And it wouldn't take 'em a year. And they wouldn't hire me back after a year of probation."
Nadeau says she never planned on hiring an attorney anyway. But, if she changes her mind, she'll go by word-of-mouth. Not a mailer from an attorney she's never met.
The Investigators contacted Charles Hausmann for this story, but he did not want to comment.
If you'd like more information on how to find a lawyer in Wisconsin to help you, or how to see which lawyers have been disciplined by the state, here are some links that should help:
To file a grievance against a lawyer with the Office of Lawyer Regulation, call 608-267-7274 or 877-315-6941.
Contact the Wisconsin Bar Association's Lawyer Referral and Information Service.
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