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Attorney Sawyer suspended over ethics By CHRIS BRISTOL A prominent Medford attorney has been suspended for nine months by the Oregon State Bar for ethical misconduct. The decision to suspend Sandra Sawyer, a former judge from Oklahoma and a respected player in the local legal community since 1983, capped a bar trial last month over her actions on behalf of a family friend and client who once found himself under investigation by the FBI for investment fraud. She faced a range of sanctions, from slap-on-the-wrist admonishment to career-ending disbarment. The suspension does not take effect until an automatic review by the state Supreme Court. Sawyer promised a vigorous defense, adding that she expects to be exonerated by the high court. The decision to suspend was made by a trial panel of two attorneys and a lay person, all from the Eugene area. "I feel the Supreme Court will be much more fair" than the volunteer trial panel, she said. "I went into that hearing feeling they were prejudiced in favor of the bar." The suspension stems from Sawyer's defense of former stockbroker Lew Aytes, who was accused of outside trading and overcharging former clients at Smith Barney in a complicated scheme that involved a type of securities called limited partnerships. The National Association of Securities Dealers eventually fined Aytes $100,000 and suspended him for 18 months. No criminal charges were ever filed. Another broker and a manager at Smith Barney also were fined for their roles in the transactions. Sawyer, who represented Aytes throughout the dispute, came under the microscope herself. At the heart of the case was a letter that Sawyer wrote to one of Aytes' former clients, who had been offered a settlement by Smith Barney in exchange for agreeing not to sue the brokerage. Sawyer's letter began this way: "I have been thinking about the best way for you to receive the money Smith Barney is offering you and still protect Lew." The bar alleged the letter was a blatant attempt in plain English to cheat Smith Barney of restitution-type claims against Aytes. The bar also alleged that Sawyer gave legal advice to clients and nonclients alike -- including Aytes' sister- and brother-in-law -- that conflicted with their best interests while clearly benefiting Aytes. At her bar trial, Sawyer's defense attorney, Bill Deatherage, accused the bar of second-guessing Sawyer from its "ivory tower" headquarters in Lake Oswego, and accused Smith Barney of pursuing a vendetta against Aytes through Sawyer. Her husband, retired Jackson County Circuit Judge Loren Sawyer, testified that the letter was a mistake but not unethical. In a brief interview Wednesday, Sandra Sawyer continued to blame Smith Barney for the bar investigation. She said at least two high-ranking officers of the state bar have represented Smith Barney at some point in the Aytes matter. "It just goes on and on and on," she said. "Everywhere you look, you find suspicious connections to Smith Barney." Predictably, the entire affair launched a flurry of litigation. Smith Barney sued Aytes, who filed a counterclaim. Sawyer said both sides recently settled for a draw. "I believed in Lew then and I still believe in him now," she said. Aytes still lives in the area, she added, but is no longer working as a stockbroker. In 32 years of practice, Sawyer said no one ever filed a complaint against her before the bar. In fact, in its decision, the bar noted Sawyer's spotless record and her reputation for integrity. Sawyer, 61, confidently asserted the Supreme Court would eventually vindicate her, and complained somewhat jokingly that the appeal process prevented her from joining her husband in retirement. No timetable is set for the high court to hear the case -- or issue a ruling. "I don't want to go out with a cloud over my head," she said. "Who knows? I may die of old age before they get it done." Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA