Loudon attorney disbarred

The Supreme Court of Tennessee has disbarred Loudon County attorney Arthur Wayne Henry from practicing law.

As a condition of reinstatement, Henry must make restitution to six clients for incidents dating back several years.

“In the handling of an estate, when an heir of the decedent attempted to purchase the decedent’s real estate, Mr. Henry misappropriated the purchase money,” a release from the Board of Professional Responsibility of the Supreme Court of Tennessee reads. “When the heir of the decedent attempted to purchase the real estate a second time, Mr. Henry misappropriated the purchase money again and forged a deed in an effort to hide his actions.”

“In the representation of a number of other clients, Mr. Henry failed to act diligently,” the release continues, “failed to adequately communicate with his clients, failed to place unearned fees in his trust account, made misrepresentations to the clients to make them think their cases were progressing normally and failed to advise his clients that he had been suspended.”

When Henry was terminated by the client, he did not refund unearned fees and return client files, according to the release. He also did not respond to the board’s requests for information.

The board charged that Henry violated several rules of professional conduct, including diligence, communication, safekeeping property and funds, declining and terminating representation, expediting litigation, bar admission and disciplinary matters and misconduct.

A findings of fact submitted by the board notes the total amount needed to be reimbursed to six clients is $55,288.

Henry on April 26, 2018, was handed a temporary suspension by the Supreme Court of Tennessee from practicing law. On April 30, 2018, he was suspended for one year and a day. The board notes to this day Henry has not requested, nor been granted, reinstatement.

The board also noted an incident in which Henry misappropriated funds for a case involving the estate of Cassie B. Leonard, which was a probate case opened Nov. 10, 2008. The case related to a reimbursement claim of $82,905.31 made by TennCare. The estate was to sell off real estate to pay administrative expenses, with the remainder to be paid to TennCare.

Loudon County General Sessions Court Judge Rex Dale in 2012 approved the sale of the real estate to Danny Leonard, son of Cassie Leonard, for $25,000. Leonard delivered a cashier’s check made payable to Henry for $25,000 to purchase the property. Henry in April 2012 paid himself $1,500 and Stella Scott, the appointed executrix of the estate, $2,337 from the $25,000 for reimbursement of expenses incurred administering the estate.

“Mr. Henry should have promptly paid TennCare the balance of the $25,000 — $21,163 — in satisfaction of its claim,” the findings of fact reads. “At no time did Mr. Henry pay TennCare any amount from the $25,000. The $21,163 should have remained in Mr. Henry’s trust account. Instead, the balance in Mr. Henry’s trust account on May 31, 2012, was only $431.92. Mr. Henry misappropriated $21,163.”

In December, Henry pleaded guilty to a class C felony of theft of property. Henry was required to pay back $25,000 and serve four years of unsupervised probation. Henry represented himself in the case and waived his right to a trial and his right to be appointed counsel.

The board also noted an incident in or about Oct. 16, 2017, when Henry was retained by Patricia Wilson and her sisters to probate an estate and was paid a $1,000 fee. Henry told Wilson he filed a petition to probate the estate, but never communicated with her again and eventually abandoned representing her.

In another case in or about March 2016, Malissa Taylor retained Henry to represent her in a “child support matter.” Henry filed a petition in General Sessions Court. On July 13, 2017, while the petition was still pending, Taylor terminated Henry and requested he return her file to a new attorney. Henry did not respond to her requests.

Henry could not be reached for comment.