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This disciplinary matter is before the Court on the report and recommendation of the special master, Shelby A. Outlaw, recommending that William C. Nesbitt State Bar No. 538301 be disbarred based upon his conduct in setting up a law practice with a client who was not a lawyer and his financial misconduct. Following the filing of a formal complaint, a timely answer, and a consolidated pre-trial order, the special master held a lengthy evidentiary hearing. The special master issued a detailed and comprehensive report and recommendation, and neither party sought review before the Review Panel.

The special master found that Nesbitt agreed with a married couple who were friends and clients, but who were not lawyers, to form the Nesbitt Law Firm, LLC. The clients contributed funds for the establishment and running of the law firm, one client was the firm’s chief financial officer, and both clients were involved in the day-to-day business operations of the firm. No documents memorialized the parties’ agreement regarding the partnership, and although the clients expected to share in the profits of the firm, they did not receive any profits or any repayment of the approximately $12,000 to $15,000 they expended on behalf of the firm. The firm ultimately went out of business.

 
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