Accused of Padding Timesheets, N.Y. Lawyer Quits Part-Time Job & Law Firm

Legal Ethics

Accused of Padding Timesheets, N.Y. Lawyer Quits Part-Time Job & Law Firm

Posted May 5, 2008, 02:35 pm CDT
By Martha Neil

Updated: A New York law firm at which 12 attorneys reportedly have been under investigation in an ongoing statewide probe of school district pension payments to lawyers is now in the news for another reason.

James McCarthy, who was counsel to the Albany, N.Y., law firm until Friday, has resigned from Girvin & Ferlazzo after resigning earlier the same day from a part-time job at the state Department of Correctional Services. He was paid almost $61,000 annually for the not quite 19-hour-a-week position, which involved preparing legal documents concerning the extradition and rendition of fugitives and accused criminals. However, a report by the state inspector general's office says he worked, during a 12-week period last year, considerably less time than he listed on his timesheets, reports the Business Review.

Acting on an anonymous tip, the state inspector general compared the timesheets with information from electronic swipe cards that workers use to enter and exit state buildings. McCarthy reportedly logged 218 hours on his timesheets during that period, but actually worked only 98, resulting in a $6,000 overpayment. According to a written report by the inspector general, Business Review wrote, "McCarthy exaggerated his time sheets and was often either at Girvin & Ferlazzo or at Wolferts Roost Country Club in Albany when he was allegedly on the clock."

As discussed in an earlier ABAJournal.com post, the firm, which is known for its expertise in education law, is part of an ongoing state and federal probe. Initially focused, as far as the state is concerned, on pension payments to lawyers for Long Island school districts, the investigation by New York's attorney general, Andrew Cuomo, is now reportedly is looking at payments to all professionals who do work at all government agencies within the state.

The investigation was touched off by Newsday reports earlier this year of a Long Island lawyer, Lawrence Reich, who claimed to have worked 1,286 days in a single year for local school districts. The state comptroller has since called for Reich to repay pension money he has received from New York, saying that he was actually an independent contractor misclassified as a state employee.

Reich told Newsday initially that he had done nothing wrong and had "followed essentially a practice that was very common among my colleagues in the industry."

In a resignation letter to the state last week, McCarthy said he resigned "so as not to be a distraction" and said he is proud of the work he has done for the corrections department, the Business Review reports. He says he has successfully overseen more than 4,000 extraditions.

Update:

Since this post was originally written, there have been new developments: One prosecutor said yesterday that public pensions for no-show school district jobs were a "partnership perk" for some Girvin & Ferlazzo lawyers. Meanwhile, state attorney general Andrew Cuomo contends that "hundreds and hundreds" of lawyers throughout the state are involved in arrangements to receive public pension credit even though they are not government employees.

Updated at 11:25 a.m., central time, on May 9, 2008, to include information about subsequent ABAJournal.com posts.

Comments

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Posted by Alan Abelson - 2 days, 21 hours, 26 minutes ago

Is this the same McCarthy that went to law school ? I know that guy! I got a good education and wonder where that guy went off the tracks! What a putz!
Posted by BigBrother - 2 days, 20 hours, 32 minutes ago

Swipe Cards? Since when is a lawyer permitted to bill hours only when he or she is sitting in the office?
Posted by by_gosh - 2 days, 18 hours, 57 minutes ago

Why is there an assumption that if you are not in your office, you’re not working? I’ve stayed home with a sick child and worked remotely. I got prior approval but still ... a lot of moms are forced to do that. Anyone heard of flex time???
Posted by JS - 2 days, 18 hours, 3 minutes ago

Here are examples of how I work outside the office: 1) attend hearings; 2) attend depositions; 3) attend trial; 4) travel across the country for any of the foregoing; or 5) prepare for any of the above from home or elsewhere. These are just a few that come to mind quickly.

If this attorney padded his bills, then he should be disciplined. But just because he has “left the building” does not mean he stopped working for the day.
Posted by JAF - 2 days, 17 hours, 53 minutes ago

My employer “encourages” off hours work - I’m an in-house attorney, but I was called on the carpet after swipe records were looked at and I wasn’t in the office more than 40 hours a week. When I pointed out to my supervisor that I often work weekends and evenings at home he said “that’s fine but I would just hate for the General Counsel to see that you’re not in the office more than 40 hours a week. He’s a big believer that this job is more than 40 hours.” Go figure!
Posted by Tom - 2 days, 17 hours, 35 minutes ago

There’s obviously more to the story than just measuring the “in the building” hours; there should have been contemporaneous timesheets that were tied to specific projects with entries that were fair and reasonable for the type of work done. Maybe he was claiming a three hour meeting when he was only in the building for one hour.

Regarding post no. 5, I’m a general counsel and this is just plain nonsense. Assuming the lawyer is an exempt employee and is getting his/her work done completely and on time, keeping track of hours in the office is nothing more than petty b---s----. If the general counsel is spending time worrying about this type of stuff, then he/she is misguided.

Now, it certainly helps for legal staff to be present during business hours for emergencies, meetings, spontaneous questions, etc., but if the job isn’t getting done in a “normal” workweek, then it strikes me that there is a problem with staffing, organization, efficiency, etc. If you want to work private practice hours, then leave the corporate world.
Posted by R - 2 days, 15 hours, 31 minutes ago

First of all, the “not quite 19 hours per week” expectation is sometimes a dishonest ruse by employers to avoid having to pay fringe benefits - even though “everyone knows” the supposedly “part time” employee will be expected to put in as many hours it takes - at home, at work, wherever - to get the job done.

I work at an agency that allegedly offers flextime - you are expected to be in the office at least 8 hours every day, and always during the core hours 9 to 4 - but woe unto you if you dare come into work later than 8:15 am: you will get called on the carpet. Doesn’t matter how late you work after the boss has gone home.

In response to post #5, the “answer” is to take along all kinds of non-work “work” from home - bills to pay, letters to write, magazines to read - as long as your ass is in your chair for the required 45-50 (or whatever) hours per week. And continue to get the job done no matter how many hours you also have to work from home. It’s stupid, but - whatever.
Posted by L York - 1 day, 15 hours, 18 minutes ago

As to the in-house counsel, its important to understand the corporate culture in which you practice. If regular management is expected to put in 40 hours in the building, you must also. As with management, occasionally you have the flexibility to either leave early, or come in late for “good cause.” Thisis something you work out in advance, when possible. Consider such flexibility a privilege, and there shouldn’t be a problem.

But lets not forget what this article is about; the potential padding of hours worked. The swipe card records are not dispositive, but may be instructive especially if records show he didn’t billl for hours he WAS in the building.

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