Matter of Rimberg

Robert L. Rimberg (defendant) was a New York attorney. A South American investor who wanted to invest $1 million in the production of a movie sought Rimberg’s assistance with the transaction. The investor gave Rimberg $1 million dollars in cash, and Rimberg deposited that money into a client account. The money was then wired to different accounts. Rimberg was told that the money was clean. Although Rimberg admitted that he had concerns about the arrangement’s legality, he proceeded anyway, ultimately receiving a $25,000 fee for his work. Rimberg later learned that the money involved in the transaction was drug money. The federal government charged Rimberg with money laundering. Rimberg subsequently pleaded guilty to a lesser charge of operating an unlicensed money-transmitting business, which was still a federal felony. Rimberg’s misconduct did not harm any of his clients. A special referee presided over associated professional disciplinary proceedings in New York. Following a mitigation hearing, the special referee issued a report. The special referee found that Rimberg’s conduct was motivated by greed. However, the special referee also found several mitigating factors. For example, Rimberg was remorseful and accepted responsibility for his actions. Moreover, Rimberg was a well-respected attorney with no prior disciplinary record. The Attorney Grievance Committee (plaintiff) moved the New York Appellate Division to confirm the special referee’s report.