BISMARCK - Three surrogate justices will join two Supreme Court justices in deciding whether former Fargo businessman John T. Korsmo's North Dakota law license should remain suspended for having a federal felony conviction.
Korsmo pleaded guilty last year to lying to federal investigators and was given an18-month suspended sentence and fined $5,000.
The state Supreme Court suspended Korsmo's law license in August pending a disciplinary investigation, even though he never renewed his state law license after leaving the state in 2001 to work in the Bush administration.
The court decided last month that oral arguments it was scheduled to hear Monday were unnecessary and it will decide the disciplinary case based on briefs and other documents.
Three justices - Dale Sandstrom, Daniel Crothers and Mary Maring - disqualified themselves from deciding the case. State district judges from Mandan - Thomas Schneider, and two retired Bismarck-Mandan district judges, Benny Graff and William Hodny - have been appointed surrogates.
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The court's Lawyers Disciplinary Board launched an ethics case and its hearing panel recommended in February that Korsmo's license be suspended for two years beyond any attempt he makes to regain his license, and that he pay $435 for the cost of the investigation.
Korsmo objected in a statement to the court, saying the recommendation is excessive.
The criminal case stems from when Korsmo was chairman of the Federal Housing Finance Board in Washington, D.C. Invitations into a 2002 Rick Clayburgh campaign fundraiser in Washington listed Korsmo as "special guest" and some of those invited were presidents of banks that Korsmo's board supervised. Clayburgh was North Dakota tax commissioner and a candidate for the U.S House.
There was no law against Korsmo being listed on the invitations. But he later admitted he lied to investigators when he told them he did not know how the Clayburgh campaign obtained information that allowed them to send invitations to the bank officials. In fact, he admitted he gave his wife, Michelle, the information and she passed it on to Clayburgh.
Readers can reach Forum reporter Janell Cole at (701) 224-0830
