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II. Rental Payments
In June of 1989, petitioner began operating the Business and
paying rent of $5,000 per month to the Dakars. In November of
1989, petitioner failed to make the required rent payment. In
December of 1989, he paid the November rent but failed to make
the December rent payment. As a result, the Dakars filed an
unlawful detainer complaint against him in the Municipal Court of
Long Beach, California. On March 26, 1990, the court entered a
default judgment against petitioner and issued a writ of
possession to the Dakars with respect to the property.
III. Three Del Rey, Inc.
On December 21, 1988, Steven K. Ledbetter, petitioner's
attorney in this proceeding, filed with the California secretary
of state's office articles of incorporation for "R/C JET
SPECIALTIES, INC.". Petitioner's name did not appear on the
document. The articles indicated that the corporation was formed
"to engage in any lawful act or activity for which a corporation
may be organized" under California law. It also indicated that
the corporation was authorized to issue 10,000 shares of stock.
The corporation, however, never issued any stock, nor did it
elect any directors.
On March 28, 1989, Mr. Ledbetter filed an amendment to the
articles of incorporation changing the corporation's name to
"Three Del Rey, Inc." (the Corporation). The Corporation filed a
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