by Garth Meyer
Redondo Beach city councilman Zein Obagi, Jr., has been sentenced to at least a two-year suspension of his law license. The April 3 California Supreme Court ruling includes a three-year probation until Obagi proves to the State Bar Court of Rehabilitation his “fitness to practice and present learning and ability in the general law.”
The action follows a judge’s Dec. 5 verdict in a State Bar trial finding Obagi culpable of two acts of “moral turpitude” for failure to distribute $515,000 to a former client after settlement of a lawsuit.
To return to practice, Obagi, Jr., must give proof to the State Bar Office of Probation that he has taken and passed the Multistate Professional Responsibility Examination, as recommended by the trial judge.
Finally, he must pay a $2,500 sanction fee to the State Bar’s client trust fund.
“Frankly, I’m not sure I’ll ever apply to get back into this profession,” Obagi said. “We’ll see what my appetite is in two years.”
He said he is meeting this week with his attorney to go over what needs to be done if he ultimately wants to be reinstated. Obagi has withdrawn from his cases – except for one federal filing which he has asked the court to withdraw – and is selling his firm.
He has also filed a lawsuit against his original attorney in the State Bar matter.
“I made the mistakes that I made, and failed to correct them earlier, in no small part, because of the poor representation by insurance-appointed counsel who failed to guide me to correct course earlier,” Obagi said.
The District 4 city councilman said he will work in litigation legal support during the probation.
“Entirely behind the scenes, while I explore other opportunities,” he said.
Will this affect representing his constituents in District Four?
“Absolutely not. It will allow me more time to participate actively,” Obagi, Jr., said, noting his roles as a delegate to South Bay Council of Governments, Southern California Association of Governments and as an alternate delegate to the Independent Cities Association.
Obagi’s State Bar trial took place last year after he was charged with 12 counts in 2021 and 2022, Judge Manjari Chawla determined that Obagi “is culpable of moral turpitude by his grossly negligent misappropriation of funds belonging to (the former client) in willful violation of (State Bar rules).”
The Bar’s prosecutor had sought disbarment for Obagi, although Judge Chawla did not see “clear and convincing evidence” that the misappropriation was intentional and dishonest.
Chawla ruled, however, that related actions taken by the defendant were ”grossly negligent” in that he delegated his $515,000 payment obligation to a third party.
The Multistate Professional Responsibility Examination is given to test an attorney, or potential attorney’s, understanding of standards of professional conduct in the industry.
“The focus on this suspension misses the mark,” Obagi said of news coverage of the sentence. “I’ve recovered millions of dollars for subjects of unlawful discrimination and retaliation at work. My rating on Google was a 4.9 and I’ve been recognized time and again, including during the pendency of charges by SuperLawyers.”
Obagi’s malpractice suit against his former attorney is expected to go to trial next January. ER
