Real estate lawyer suspended 10 months for costing his client $550K

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The Office of Attorney Regulation Counsel is an independent office of the Colorado Supreme Court, whose building is seen here in 2015. (The Denver Post)

A real estate attorney will lose his law license for 10 months after he cost a client $550,000 by largely ignoring a lawsuit that accused the man of stealing from his employer.

The suspension of Charles Vanstrom, a sole proprietor in Denver, takes effect June 11. The Sturm College of Law alum has been a lawyer in Colorado since 1991.

In 2020, Vanstrom agreed to represent a former co-owner and doctor at ReLive, a testosterone clinic in Arvada that was accusing the two of siphoning funds and starting a competing company. It is Vanstrom’s work for the doctor, Aaron Avallone, that was found faulty.

When Avallone was subpoenaed in August 2020, Vanstrom didn’t show the subpoena to his client, according to Avallone. When ReLive requested that Avallone be fined for ignoring the subpoena, Vanstrom told his client that no action was necessary, Vanstrom admitted.

A hearing on sanctions was held the following June but Vanstrom didn’t appear and likely didn’t tell his client about it, according to Vanstrom. So, Avallone was ordered to pay $52,000 as a punishment for his behavior. This, too, was never conveyed by Vanstrom to Avallone, who learned of the judgment only when ReLive garnished his bank accounts.

Next, ReLive asked that Avallone be held in contempt of court for repeatedly ignoring court orders. Avallone appeared at a court hearing about that in early 2022 and learned then, on the eve of the trial, that Vanstrom had been ignoring deadlines and was unprepared for trial. So, Avallone agreed to pay a $500,000 settlement to avoid a seven-figure verdict.

Vanstrom’s malpractice was spelled out in a May 1 agreement between Vanstrom and the Colorado Office of Attorney Regulation Counsel, which investigates wrongdoing by lawyers. It recommended a 10-month suspension, which a disciplinary judge imposed May 7.

Avallone sued Vanstrom for malpractice in late 2022. When Vanstrom ignored that lawsuit, a judge in Golden ordered him to pay his former client $572,000. Vanstrom has not paid any of that amount and, instead, has “expressed that he does not intend to pay and has indicated that he does not have a present ability to pay,” according to the May 1 agreement.

Vanstrom did not return voicemail messages and emails seeking comment.

He previously ran afoul of ethical guidelines in 2008, when he mishandled money while co-managing an office building, according to state records. His law license was placed on probation for two years as a result. Vanstrom completed the probation without issue.

FrackingCase7 Cropped

The Office of Attorney Regulation Counsel is an independent office of the Colorado Supreme Court, whose building is seen here in 2015. (The Denver Post)

A real estate attorney will lose his law license for 10 months after he cost a client $550,000 by largely ignoring a lawsuit that accused the man of stealing from his employer.

The suspension of Charles Vanstrom, a sole proprietor in Denver, takes effect June 11. The Sturm College of Law alum has been a lawyer in Colorado since 1991.

In 2020, Vanstrom agreed to represent a former co-owner and doctor at ReLive, a testosterone clinic in Arvada that was accusing the two of siphoning funds and starting a competing company. It is Vanstrom’s work for the doctor, Aaron Avallone, that was found faulty.

When Avallone was subpoenaed in August 2020, Vanstrom didn’t show the subpoena to his client, according to Avallone. When ReLive requested that Avallone be fined for ignoring the subpoena, Vanstrom told his client that no action was necessary, Vanstrom admitted.

A hearing on sanctions was held the following June but Vanstrom didn’t appear and likely didn’t tell his client about it, according to Vanstrom. So, Avallone was ordered to pay $52,000 as a punishment for his behavior. This, too, was never conveyed by Vanstrom to Avallone, who learned of the judgment only when ReLive garnished his bank accounts.

Next, ReLive asked that Avallone be held in contempt of court for repeatedly ignoring court orders. Avallone appeared at a court hearing about that in early 2022 and learned then, on the eve of the trial, that Vanstrom had been ignoring deadlines and was unprepared for trial. So, Avallone agreed to pay a $500,000 settlement to avoid a seven-figure verdict.

Vanstrom’s malpractice was spelled out in a May 1 agreement between Vanstrom and the Colorado Office of Attorney Regulation Counsel, which investigates wrongdoing by lawyers. It recommended a 10-month suspension, which a disciplinary judge imposed May 7.

Avallone sued Vanstrom for malpractice in late 2022. When Vanstrom ignored that lawsuit, a judge in Golden ordered him to pay his former client $572,000. Vanstrom has not paid any of that amount and, instead, has “expressed that he does not intend to pay and has indicated that he does not have a present ability to pay,” according to the May 1 agreement.

Vanstrom did not return voicemail messages and emails seeking comment.

He previously ran afoul of ethical guidelines in 2008, when he mishandled money while co-managing an office building, according to state records. His law license was placed on probation for two years as a result. Vanstrom completed the probation without issue.

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