Lawyer Disbarred for Misappropriating Client Funds and Forging Receipts

The Supreme Court has disbarred a lawyer who misappropriated his client's payment of a judgment obligation, forged an acknowledgment receipt, and lied to the court to cover up his misconduct. The case of Dela Cruz v. Atty. Peralta (A.C. No. 13475, October 4, 2022) serves as a stern reminder that lawyers who engage in deceitful conduct risk losing their license to practice law.

The Facts of the Case

The complainants obtained a criminal conviction against Lito Gitalan, Jr. for reckless imprudence resulting in homicide, with damages awarded in their favor. After the judgment became final, Gitalan entrusted a manager's check to his lawyer, Atty. Glen Eric Peralta, to pay the monetary award.

Instead of remitting the payment to the complainants, Atty. Peralta kept the proceeds for himself. He then fabricated an acknowledgment receipt, forged the signature of one of the complainants, and notarized the fake document. When the complainants moved for execution of the judgment, Atty. Peralta falsely told the presiding judge that he had already fully paid the damages, presenting the falsified receipt as proof.

When confronted, Atty. Peralta denied everything and attempted to blame his secretary, claiming she had encashed the check and issued the receipt. The IBP found this defense to be a mere afterthought.

The Issue

The central question was whether Atty. Peralta violated his Lawyer's Oath and the Code of Professional Responsibility (CPR), and if so, whether disbarment was the appropriate penalty.

The Ruling

The Supreme Court found Atty. Peralta guilty of multiple violations of the CPR, including:

• Rule 1.01, Canon 1 — engaging in unlawful, dishonest, immoral, or deceitful conduct
• Rule 7.03, Canon 7 — engaging in conduct that adversely reflects on his fitness to practice law
• Rule 10.01, Canon 10 — doing falsehoods in court and misleading the court
• Canon 11 — failing to maintain respect due to the courts
• Canons 15, 16, and 17 — violating candor, failing to hold client funds in trust, and breaching fidelity to his client
• Rule 12.04, Canon 12 — impeding the execution of a judgment

The Court emphasized that the evidence showed Atty. Peralta received the manager's check from his client, violated that trust, created a fake receipt, forged a signature, and tried to deceive the court. He showed no remorse and even attempted to use his secretary as a scapegoat.

Why Disbarment Was Imposed

The Court explained that while disbarment is generally reserved for clear cases of serious misconduct, lawyers have been disbarred for misrepresentation and deception of clients. Atty. Peralta's deceitfulness, gross misconduct, and utter lack of remorse demonstrated his unfitness to practice law.

As the Court stressed, membership in the legal profession is a privilege. When a lawyer proves unworthy of the trust and confidence of clients and the public, it becomes the Court's duty to withdraw that privilege.

Practical Takeaways

• Client funds must be held in trust. Lawyers who receive money belonging to clients must account for it fully and promptly.
• Never fabricate documents. Forging signatures, notarizing false documents, or presenting fake receipts to courts are grave offenses that warrant the ultimate penalty.
• Candor with courts is non-negotiable. Misleading a judge, even to cover up another wrongdoing, compounds the lawyer's liability.
• Blaming staff is not a defense. Attempting to shift responsibility to a secretary or employee, especially when raised late, will not save a lawyer from discipline.
• Disbarment is real. The Court will not hesitate to strike a lawyer's name from the Roll of Attorneys when misconduct reveals basic moral flaws.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.