St. Charles attorney told to repay client $50,000
A St. Charles-based lawyer has been ordered by a state review board to repay $50,000 to a client who was overbilled.
The Illinois Attorney Registration and Disciplinary Commission recently found that Sheldon B. Nagelberg charged an "unreasonable fee" and improperly divided his legal fee with a lawyer in a separate firm without his client's consent.
Nagelberg was placed on two years' probation, and if he fails to repay Hilary Marel Winniczek within two years, Nagelberg's law license will be suspended for six months.
"I am aware of the decision," Nagelberg said Friday. "But I don't want to make any comment on it."
The case stemmed from Winniczek's arrest in 2000 by FBI agents in Tampa Bay.
Winniczek, an interpreter, was accused of accepting up to $1,200 to fix licensing tests for Chicago applicants seeking truck-driving jobs. The drivers would then take their Florida licenses back to Chicago and exchange them for Illinois licenses.
Winniczek hired an attorney but thought he could get a better one. He was referred to Nagelberg by Nagelberg's then brother-in-law, who practiced in Florida.
Nagelberg charged Winniczek $150,000, plus $20,000 for expenses, to prepare a defense. Nagelberg also split part of the $25,000 retainer fee with his brother-in-law, but didn't tell Winniczek.
The case never went to trial and Winniczek eventually pleaded guilty and was sentenced to 22 months in prison.
The Illinois disciplinary commission disagreed with Winniczek's claims that Nagelberg had failed to provide competent representation and engaged in conduct prejudicial to the administration of justice.
The review board's administrator initially recommended a one-year suspension of Nagelberg's license and $75,000 in restitution.
Nagelberg and his attorney's argued for a censure and $42,000 in restitution.
In meting out the punishment, a three-member panel -- Chairman John Steed III, Leonard J. Schrager and Frederich J. Bingham -- noted Nagelberg had practiced for 32 years with no prior disciplinary actions and had a "long record of untainted practice."
Nagelberg also provided pro bono representation and donated time to numerous community groups in the past, and cooperated in the proceedings, the trio wrote.