South Florida attorneys stealing, working when suspended, not working after being paid
Lawyers in over their head and incarcerated are among those from the Florida Keys to Palm Beach County on the Florida Bar’s most recent list of attorneys disciplined by the state Supreme Court.
In alphabetical order:
Catherine Czyz, West Palm Beach
For her employment discrimination suit against Mariner Middle School in Cape Coral in March 2016, teacher Erin Neitzelt reached out to Czyz (admitted to the Bar in 1997), a high school acquaintance with whom she had occasional online contact.
Believing she was about to be fired after only seven months, according to her testimony before the disciplinary case referee, Neitzelt resigned in March 2016. Her issues with Mariner included being excluded from the talent pool being considered for the principal position, though she’d been a principal elsewhere from 1997 through 2007.
Neitzelt said Czyz claimed the $350 per hour she was charging Neitzelt was a friend rate, half her usual $700 per hour. After Neitzelt paid $6,000 non-refundable retainer and a $1,500 cost retainer, Neitzelt told Czyz “she did not know why she was being mistreated at Mariner, but suggested that it could have been because of “the way I looked or the car I drove or because of the jewelry that I wore or where our home was located…””
The EEOC Charge Form Letter Czyz prepared alleged discrimination based on Neitzelt’s gender “and, more specifically, a good-looking, blonde, white woman with a stellar education ... and I have a certain amount of wealth from hard work.”
The looks and money references made Neitzelt uneasy, but Czyz told here they were necessary and what was in the letter formed “legitimate basis to file suit.” Czyz also made references to Neitzelt’s Irish and Italian lineage in the filed complaint, to Neitzelt’s surprise.
The case was moved to federal court in the Middle District of Florida, where Czyz wasn’t admitted. Eventually, they brought on attorney Jason Gunter, board certified in labor and employment law. Neitzelt got a $2,500 “nuisance payment” and her claims were dismissed with prejudice.
Gunter told the referee that Neitzelt’s case was so weak, that it shouldn’t have gone past an initial consultation. He only agreed to represent her if she agreed to a goal of settling the case with a dismissal that wouldn’t leave her on the hook for the school’s attorney’s fees.
Speaking of attorney’s fees, the referee’s report said Gunter called Czyz’s fees, which reached over $40,000, “unnecessary” because “there was going to be no viable opportunity ever to succeed on these claims against a public sector entity.” Even if the claims had been viable, Mr. Gunter found that the fees charged by [Czyz] were beyond “not only what I would charge, but that I had ever heard of in my career.”
The referee found that Czyz “despite substantial experience, accepted representation in an area of law in which she lacked sufficient knowledge and skill.”
Czyz’s two-year suspension started Saturday. She’s also ordered to pay restitution of $41,798 with interest to Neitzelt.
Gary Kovacs, West Palm Beach
Kovacs went for disciplinary revocation in 2018 to settle four Bar grievances, including “diverting” $184,000 of client fees paid to Frank, Weinberg & Black, P .L., for which Kovacs worked. When state Supreme Court granted that order on Feb. 22, 2018, the Bar part of those discipline matters disappeared and Kovacs disappeared as a licensed attorney, eligible to apply for readmission on March 24, 2023.
Hollywood police say that didn’t stop Kovacs, that same month, from holding himself out as an attorney to someone for whom he’d done legal work before. An arrest warrant says Kovacs collected $85,000 from that person before a coworker told the person nothing had been filed in Broward civil court. That’s when the person allegedly learned of Kovacs’ status.
So, he’s charged in Broward County with grand theft and the unlicensed practice of law. Meanwhile, in Palm Beach, the law firm wasn’t keen on letting Kovacs skate on those client’s fees. The law firm pressed charges, the case was prosecuted and a jury found him guilty of an organized scheme to defraud and money laundering in October. He’s awaiting sentencing.
From jail cell No. S8 of the Palm Beach County Sheriff’s Office Main Detention Center, Kovacs applied for disciplinary revocation with no chance for readmission. The state Supreme Court granted it.
Jiulio Margalli, Key West
Margalli’s Florida Bar entry says “Incapacitated” and his guilty plea for consent judgment says the Bar discipline issues “appear to be directly related to and resulting from, [Margalli’s] spiraling mental health condition” and substance abuse might be involved. During a welfare check, police told Margalli to give up the guns in his house or they might Baker Act him.
During his divorce, Margalli (admitted to the Bar in 1993) sold a French property they held, then put the money in a French bank account, didn’t tell his ex-wife or her lawyer about the sale and held back her part of the money. He lied about his ability to pay agreed upon expenses. He also spoke directly with his ex-wife even after she and her lawyer said he had to deal with only her attorney.
Margalli’s other discipline matters regarded money for nothing in criminal cases, a home lien, a wrongful termination suit and a case against the Florida Department of Children and Families in Broward County.
These actions led to a two-year suspension retroactively started Dec. 20, 2018. His petition to be placed on the Inactive List for Incapacity Not Related to Misconduct has been granted. He’s entered a contract with Florida Lawyers Assistance, which helps lawyers dealing with mental health or substance abuse issues.
Kenneth Walton II, Miami
In the cases of three different clients, Walton’s guilty plea admits he should have refused their business because of ongoing mental health issues. One of those clients had a $500 per day lien on his property by the city of Sunny Isles Beach and Walton (admitted to the Bar in 1999) got it removed and the case resolved, but didn’t “communicate diligently” with the client.
A fourth discipline matter involved a real estate deal for which Walton prepped the closing documents. He made a mistake that caused the sellers to get $6,586 too much. That happened to be the amount of commission due the Realtor, Sandor Urban. Walton dodged Urban while he tried to make things right with a demand letter to the seller. Urban filed a Bar grievance, but got his money.
A fifth client paid Walton in March 2019 to file a lawsuit and, seven months later, Walton hadn’t filed it. When the client filed a Bar grievance, Walton promised to work on the lawsuit if the grievance was withdrawn. He didn’t and it wasn’t.
Walton began a 91-day suspension on Jan. 19.
This story was originally published February 9, 2022 at 12:52 PM.
