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On January 23, 1987, a judgment entry of conviction and
sentence was filed against Popovic, who had pleaded guilty to the
third degree felony of conducting an illegal bingo game. Popovic
was sentenced to 2 years’ imprisonment and a fine of $3,500. The
imprisonment sentence was suspended, and Popovic was put on 5
years’ probation.
Jack D. Maistros (hereinafter sometimes referred to as
Maistros) represented Popovic during this criminal case.
Maistros was an attorney in the same firm as John Climaco
(hereinafter sometimes referred to as Climaco), petitioner’s
longtime counsel. Petitioner issued a check for $10,000 (which
bore the notation “full and final settlement for all attorney
fees”) to Climaco on November 28, 1986. This check was signed by
Plants and Zeve. This payment was authorized by petitioner’s
board of trustees.
Elio Zerbini (hereinafter sometimes referred to as Zerbini)
represented petitioner during its criminal case. On August 13,
1986, petitioner paid $3,000 to Zerbini as a retainer for
representing it and providing legal advice to Zeve in connection
with the criminal case. This check was signed by Plants and
Wilkens. Although petitioner’s articles of incorporation
authorize it to indemnify an officer for expenses incurred in
defending against actions, suits, and proceedings, petitioner did
not expressly authorize any payments to Zerbini for legal advice
on behalf of Zeve.
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