Michael Whitcomb Sganga Disbarred For Stealing $61,500 From Clients

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Sganga stipulated to multiple acts of misconduct including misappropriating $61,500 in a two client litigation matters. Sganga settled a lawsuit for his clients and received funds on their behalf, which he placed in his client trust account.

Michael Whitcomb Sganga Disbarred For Stealing $61,500 From Clients

Michael Whitcomb Sganga [#227179], 54, of Redwood City, was disbarred effective August 22, 2018, ordered to notify clients of the discipline and perform other obligations under rule 9.20 of the California Rules of Court. Sganga stipulated to multiple acts of misconduct including misappropriating $61,500 in a two client litigation matters. Sganga settled a lawsuit for his clients and received funds on their behalf, which he placed in his client trust account. The clients disputed his fee request and directed that he not remove any of the funds until the dispute was resolved. Sganga however withdrew funds 13 times during the dispute and used the money to pay personal expenses such as rent, directly out of the trust account, causing his account balance to drop below the amount needed to cover the settlement proceeds for his clients. Sganga also failed to promptly disburse the final settlement proceeds after the fee dispute was settled. Sganga had no prior record of discipline, and produced evidence of his general good character, but the Review Department found that the mitigation did not overcome the significance of his multiple acts of misconduct.

 

.calbar.ca.gov