ANGEL L LOPEZ ROMAN and SYLVIA RIVERA DEL VALLE

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF PUERTO RICO
IN RE: 	:
:
JOSE J SALINAS SANTIAGO 	: 	CASE NO. 05-03555 (GAC)
GLORIA M RUIZ RAMOS 	: 	CHAPTER 13
Debtors 	:
__________________________________ :
:
:
ANGEL L. LOPEZ ROMAN 	:
SYLVIA RIVERA DEL VALLE 	: 	CASE NO. 04-05730 (GAC)
Debtors 	: 	CHAPTER 13
__________________________________ :
ORDER
Pending 	before 	this 	Court 	are 	various 	motions 	filed 	by
debtors and the trustees, asserting that attorney Francisco Ortiz
McWilliams (“attorney McWilliams”) has violated in three different
cases 	the 	rules 	of 	ethics 	that 	govern 	the 	attorney-client
relationship, as prescribed in the American Bar Association Model
Rules of Professional Conduct and that thus, he should be referred
to the U.S. District Court for a disciplinary proceeding.
A. Case 05-03555
In the present case, on September 1, 2006, the trustee filed
an urgent motion for debtors’ counsel to show cause, asserting that
the debtors were going to loose their house because they signed a
blank 	plan 	dated 	March 	30, 	2006, 	that 	stated 	that 	the 	stay 	was
lifted 	as 	to 	the 	debtor’s 	residence 	and 	that 	they 	have 	not 	been
able 	to 	contact 	the 	attorney 	(Docket 	#10). 	The 	Court 	ordered
attorney McWilliams to show cause (Docket #11). Attorney McWilliams
failed to answer the court order and the matter was referred to the
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U.S. Trustees’ Office to conduct an investigation (Docket #14). The
U.S. 	Trustee 	filed 	a 	report 	and 	asserted 	that 	this 	has 	also
happened in various cases in front of other judges, and concluded
that attorney McWilliams failed to provide adequate representation
to his clients (Docket #28). The Trustee filed another motion for
sanctions 	and 	to 	refer 	counsel 	for 	a 	disciplinary 	proceeding,
asserting 	that 	the 	debtors 	gave 	two 	(2) 	checks 	to 	attorney
McWilliams 	for 	him 	to 	deliver 	to 	the 	trustee, 	and 	that 	trustee
never 	received 	them 	(Docket 	#29). 	According 	to 	the 	bank 	records,
one 	of 	the 	checks 	for 	the 	amount 	of 	$340.00 	was 	endorsed 	by
attorney McWilliams himself and the other for the amount of $340.00
was endorsed by his secretary Mrs. Flecha (Docket #29). On January
3, 2007, the Court entered another order for attorney McWilliams to
show 	cause 	as 	to 	why 	the 	trustee’s 	motion 	should 	not 	be 	granted,
including 	sanctions 	for 	disobeying 	the 	order 	of 	the 	Court 	and
referral to the U.S. District Court and the Disciplinary Board of
Violation of the Rules of Professional Conduct (Docket #34). As of
today, attorney McWilliams has failed to answer the orders to show
cause.
B. Case 04-05730
In 	the 	present 	case, 	attorney 	McWilliams 	filed 	a motion
requesting the unclaimed funds in the amount of $5,300.00 (Docket
#40). 	The 	debtors 	filed 	a 	motion 	requesting 	an 	investigation
regarding the unclaimed funds, asserting that they never endorsed
or 	cashed 	the 	check 	(Docket 	#44). 	The 	Court 	entered 	an 	order 	for
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attorney 	McWilliams 	to 	show 	cause 	as 	to 	why 	he 	should 	not 	be
referred 	to 	the 	U.S. 	Attorney’s 	Office 	for 	a 	disciplinary
proceeding 	(Docket 	#46). 	The 	Clerk 	of 	the 	Court 	filed 	a 	motion
regarding 	the 	investigation 	of 	the 	check 	and 	filed 	a 	copy 	of 	the
cashed 	check, 	which 	appears 	to 	be 	endorsed 	by 	the 	debtors 	and 	by
attorney McWilliams (Docket #49).
Local Rule 83.5(a) of the U.S. District Court for the District
of 	Puerto 	Rico 	establishes 	that 	the 	Model 	Rules 	for 	Professional
Conduct adopted by the American Bar Association govern the conduct
of 	attorneys 	appearing 	before 	said 	court, 	as 	well 	as 	in 	the
bankruptcy court. Attorney McWilliams’ actions in this cases show
that he has breached his ethical responsibilities towards debtors
by breaching the following rules of the Model Rules of Professional
Conduct: 	Rule 	1.1, 	Competence, 	Rule 	1.3, 	Diligence, 	Rule 	1.4,
Communication, 	and 	Rule 	1.15, 	Safekeeping 	Property. 	The 	Trustee
asserts 	that 	this 	has 	happened 	in 	other 	cases, 	which 	have 	been
dismissed 	or 	are 	now 	closed. 	The 	Court 	will 	refer 	this 	matter 	to
the 	U.S. 	District 	Court 	because 	the 	disciplinary 	jurisdiction 	to
disbar 	and 	suspend 	attorneys 	has 	been 	retained 	by 	and 	lies
exclusively 	in 	the 	U.S. 	District 	Court. 	See 	In 	re 	Sheridan, 	362
F.3d 96 (1st Cir. 2004).
The Clerk shall certify copy to the U.S. District Court of the
dockets of the three cases, the motions filed by the trustees and
the motions filed by the debtors.
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ORDER
IT 	IS 	ORDERED 	that 	attorney 	Francisco 	Ortiz 	McWilliams 	will
be referred to the U.S. District Court for the District of Puerto
Rico for a disciplinary proceeding for breach of the American Bar
Association 	Model 	Rules 	of 	Professional 	Conduct. 	Because 	there
appears 	to 	have 	been 	misapplication 	in 	some 	of 	these 	bankruptcy
cases 	of 	client’s 	or 	estate’s 	funds. 	These 	matters 	are 	also
referred 	to 	the 	US 	Attorney 	for 	the 	District 	of 	Puerto 	Rico 	for
appropriate 	action. 	Furthermore, 	since 	Ortiz 	McWilliams 	has 	been
indefinitely suspended from practice by order of the District Court
dated 	August 	24, 	2007 	(Misc. 	no. 	07-081 	(JAF)), 	the 	US 	Trustee
shall investigate and report to the Court in twenty (20) days: a)
If 	the 	individual 	debtors 	represented 	by 	this 	attorney 	have 	been
able 	to 	obtain 	counsel 	in 	all 	the 	cases 	and 	b) 	what 	course 	of
action is recommended in order to assure these parties that their
rights are not affected by the actions of this attorney, including
the referral of cases to the Puerto Rico Bankruptcy Bar Association
(PRBBA) 	in 	order 	to 	obtain 	proper 	representation 	and/or 	pro-bono
counsel.
A copy of this order will be notified by the Clerk to all the
Bankruptcy 	Judges 	and 	to 	the 	President 	of 	the 	Puerto 	Rico
Bankruptcy Bar Association.
SO ORDERED.
San Juan, Puerto Rico, this 10th day of December 2007.
/s Gerardo A. Carlo-Altieri
_____________________________
GERARDO A. CARLO-ALTIERI
Chief, U.S. Bankruptcy Judge
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