KEN MCKENNA Aggressive excellence' lawyer Ken McKenna faces federal income tax charges, KEN MCKENNA STATE BAR DISCIPLINE COMPLAINT RENO Nevada

IN THE SUPREME COURT OF THE STATE OF NEVADA 2012
In Re: Discipline of
KENNETH J. MCKENNA, ESQ. )
Nevada State Bar No. 1676 )
Case No. „ , orwalury
PETITION PURSUANT TO SCR 111
In accordance with the requirements set forth in Supreme Court Rule (hereinafter "SCR") 111(8), the State Bar of Nevada, b yl and through its Bar Counsel, David A. Clark, upon receiving the self reporting of the conviction of attorney Kenneth J. McKenna (hereinafter "Respondent"), and obtaining a certified copy of the same, undersigned hereby files with this Court the Judgment in a Criminal Case.
STATEMENT OF FACTS

1. Respondent was admitted to practice law in the State of Nevada in 1980 and is subject to the disciplinary jurisdiction of the State Bar of Nevada.
2. On September 20, 2010, the United States Attorney's Office for the District of Nevada and the Tax Division of the U S. Department of Justice jointly filed a Criminal Information charging that Respondent owed a substantial amount of tax to the United States of America but failed to pay his tax burden, Which is a violation of Title 26 United States Code, Section 7203 (Willful failure to file return, supply information or pay tax).
3. On January 4, 2011, Respondent pled guilty to two (2) counts of willful failure to pay taxes, a violation of 26 U.S.C. Section 7203.
4. A Plea Memorandum, filed January 4, 2011, detailed the facts that support the guilty plea in t 1- Respondent underistood that he was required by law to file federal individ.arAoc L I V IS tax to (IRS forms 1040) for 2004 and 2007. Respondent also unde stood tliM44 tvaiii2equires by law to pay, on or before the statutorily defined deadline, the tax - Resipondent admitted that he willfully failed to pay the DEPUTY CLERK 1 individual income tax he owed for 2004 and 2007.

5. On May 19, 2011, the State l Bar of Nevada received a letter from Respondent self-reporting the two (2) count misdemeanor conviction. In his letter, the Respondent makes the distinction that he pled to the charge of "Willful failure to pay income tax" as opposed to "Willful failure to file return" (Emphasis added). A copy of this letter is attached hereto as Exhibit 2.
6. Respondent's Judgment in a Criminal Case was entered on April 28, 2011 and the State Bar obtained a copy provided herein in accordance with SCR 111(8) (Attorneys convicted of crimes). See Exhibit 1.
7. It was ordered in the Judgment in a Criminal Case that Defendant be sentenced to five (5) years probation, with conditions that include but are not limited to, a) Defendant shall not possess, have under his control, or have access to any firearm, explosive device or other dangerous weapons, as defined by federal state or local law; b) prohibition from incurring new credit charges, additional lines of credit or negotiating or consummating any financial contracts without the approval of the probation officer; and c) providing the probation officer access to any requested financial information, including personal income tax returns, authorization for release of credit information and other business financial information. Respondent was to pay a lump sum payment of $153,090 (one hundred fifty-three thousand ninety dollars) upon entry of judgment payable at the rate of no less than 10% of gross income, subject to an adjustment
by the court based on ability to pay, and a $25 (twenty-five dollar) administrative assessment for each count, for a total of $50 (fifty dollars). 

MEMORANDUM OF POINTS AND AUTHORITIES
8. The primary issue before this Court is whether Respondent's actions should be interpreted as constituting a "serious crime" within the scope and meaning of SCR 111 (Attorneys convicted of crime). Subsection (2) of that Rule defines a serious crime as follows:
(1) a felony and (2) any crime less than a felony a necessary element of which is, as determined by the statutory or common law definition of the crime, improper conduct as an attorney, 2 interference with the administration of justice, false swearing, misrepresentation, fraud, willful failure to file an income tax return, deceit, bribery, extortion, misappropriation, theft, or an attempt or a conspiracy or solicitation of another to commit a "serious crime."
9. Although the Respondent was not convicted of a felony, he pled guilty to two (2) misdemeanor violations of 26 U.S.C. Section 7203, (Willful failure to pay taxes). The elements for this crime that are cited in the plea agreement are as follows:
1. Defendant owed income tax for the calendar years ending December 31, 2004 and December 31, 2007;
2. Defendant failed to pay the tax due for the 2004 tax year by April 15, 2005, and failed to pay the tax due for the 2007 tax year by April 15, 2008; and
3. Defendant's failure to pay the tax due for 2004 and 2007 was willful and not the result of accident or negligence.
10. Of importance is element number three (3) relating to evading duties under the tax laws that are not a result of accident or negligence. This element shows scienter or intent to evade his tax obligations.
11. In accordance with the Plea Memorandum, on or about October 14, 2005, Defendant signed and subsequently filed a 2004 U.S. Individual Income Tax Return (IRS Form 1040) showing that his total income was $103,784 (one hundred three thousand seven hundred eighty-four dollars), and that he owed $15,980 (fifteen thousand nine hundred and eighty dollars) in taxes for that year. Defendant failed to pay the tax due by April 15, 2005, as required by law. On or about December 17, 2007, Defendant signed and subsequently filed a 2004 Amended U.S. Individual Income Tax Return (IRS Form 1040X) showing that his total income was $243,642 (two hundred forty-three thousand six hundred forty-two dollars). The 2004 amended return also showed that he owed $64,413 (sixty-four thousand four hundred thirteen dollars) in tax. Defendant failed to pay the tax due by April 15, 2005, or at any other time, as required by law.
12. On or about April 11, 2008, Defendant signed and filed a 2007 U.S. Individual
3
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Income Tax Return (IRS form 1040) showing that his total income was $208,805 (two hundred eight thousand eight hundred five dollars), and that he owed $59,195 (fifty-nine thousand one hundred ninety-five dollars) in taxes for that year. Defendant failed to pay the tax due by April 15, 2008, as required by law. In fact, Defendant willfully failed to make any payments on his 2007 income tax liability.
MITIGATING AND AGGRAVATING CIRCUMSTANCES
13. The mitigating circumstances are that Respondent reported his conviction to the State Bar in a timely and appropriate fashion and that Respondent has been cooperative with the State Bar in their investigation of this matter. There appear to be no aggravating circumstances other than the conviction of the instant crime.
CONCLUSION
14. Respondent's actions in this matter, as well as his ultimate conviction, demonstrate that he knowingly and willfully engaged in criminal activity for his own personal gain. Although the Respondent was not convicted of a felony, the elements of his crime show intent and are quite similar as those of a felony conviction under 26 U.S.C. Section 7201. WHEREFORE, the State Bar of Nevada respectfully brings this matter to this Honorable Court's attention pursuant to SCR 111.
Respectfully submitted this 27th day of January,2012
STATE BAR OF NEVADA
David A.Clark, Bar Counsel
Patrick 0. King, Assistant'Bar Counsel
Nevada Bar No. 5035
9456 Double R Blvd., Ste. B
Reno, NV 89521
(775) 329-4100
BY Ij OLX
4
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EXHIBIT 'I
APR 2 8 2011
CLERK US DISTRICT ART
DISTRICT OF NEVADA
DEPUTY
•
Case 3:10-cr-00106-RCJ -VPC Document 24 Filed 018/11 Page 1 of 5
FILED RECEIVED
ENTERED SERVED ON
CIRInttilltil 1E5 Of lituuRd
AQ245B (Rev. 09/08) Judgment in a Crimitud Case
Sham 1
UNITED STATES DISTRICT COUtt.T
DISTRICT OF NEVADA I
UNITED STATES OF AMERICA JUDGMENT IN A CRIMINAL CASE
vs.
KENNETH J. MCKENNA CASE NUMBER: 3 :10-cr-0106-RCJA*PC
USM NUMBER: 45540-048 BY: -
Leah Wigren, CJA
THE DEFENDANT: DEFENDANT'S ATTORNEY
pled guilty to Count(s) One and Two of the Misdemeanor Criminal Information
pled nob o contendere to count(s) which was accepted by the court.
was found guilty on count(s) after a plea of not guilty.
The defendant is adjudicated guilty of these offense(s):
Date
Title & Section Nature of Offense Offense Ended Count
26 U.S.C. § 7203 Willful Failure to Pay Income Tax 04/15/2005 1
26 U.S.C. § 7203 Willful Failure to Pay Income Tax ' 04/15/2008 2
The defendant is sentenced as provided in pages 2 through 5 of this judgment. The sentence is imposed pursuant
to the Sentencing Reform Act of 1984.
The defendant has been found not guilty on count(s)
Count(s) (is)(are) dismissed on the motion of the United States.
IT IS ORDERED that the defendant must notify the United States Attorney for this district within 30 days of any
change of name, residence, or mailing address until all fines, restitution, costs, and special assessments imposed by this
judgment are fully paid. If ordered to pay restitution, the defendant must notify the court and United States attorney of
material changes in economic circumstances.
April, 25 2011
Date of Imposition of Judgment
( X )
)
)
( )
( )
CERTIFIED TO BE A TRUE COPY
Clerk, United Stateqistrict Court
, By 21N- ,NL. \ •
eputy Cle*:
ROBERT C. JONES, U.S. DISTRICT JUDGE
Name and Title of Judge
04-27-2011
Date
( )
( x )
( )
( )
( )
Case 3:10-cr-00106--RCJ -VPC Document 24 Filed 04/28/11 Page 2 of 5
AO 2458 (Rev. 09(08) Judgment in a Criminal Cue
Sheet 4 - Probation
DEFENDANT: KENNETH J. MCKENNA
CASE NUMBER: 3:10-cr-0106-RCJ-VPC
Judgment - Page 2 of 5
PROBATION
The defendant is hereby sentenced to probation for a term of FIVE (5) YEARS
The defendant shall not commit another federal, state, or local crime.
The defendant shall not unlawfully possess a controlled substance. The defendant shall refrain from any unlawful use
of a controlled substance. The defendant shall submit to one drug test within 15 days of release from imprisonment and
at least two periodic drug tests thereafter, not to exceed 104 drug tests annually. Revocation is mandatory for refusal to
comply.
The above drug testing condition is suspended based on the court's determination that the defendant poses a low
risk of future substance abuse. (Check, if applicable.)
The defendant shall not possess a firearm, ammunition, destructive device, or any other dangerous weapon.
(Check, if applicable.)
The defendant shall cooperate in the collection of DNA as directed by the probation officer. (Check, if
applicable.)
The defendant shall comply with the requirements of the Sex Offender Registration and Notification Act (42
U.S.C. § 16901, el seq.) as directed by the probation officer, the Bureau of Prisons, or any state sex offender
registration agency in which he or she resides, works, is a student, or was convicted of a qualifying offense.
(Check, if applicable.)
The defendant shall participate in an approved program for domestic violence. (Check, if applicable.)
If this judgment imposes a fine or a restitution, it is a condition of probation that the defendant pay in accordance
• with the Schedule of Payments sheet of this judgment.
The defendant must comply with the standard conditions that have been adopted by this court as well as with
any additional conditions on the attached page.
STANDARD CONDITIONS OF SUPERVISION
1) the defendant shall not leave the judicial district without the permission of the court or probation officer;
2) the defendant shall report to the probation officer and shall submit a truthful and complete written report within the first
five days of each month;
3) the defendant shall answer truthfully all inquiries by the probation officer and follow the instructions of the probation
officer;
4) the defendant shall support his or her dependants and meet other family responsibilities;
5) the defendant shall work regularly at a lawful occupation unless excused by the probation officer for schooling, training,
or other acceptable reasons;
6) the defendant shall notify the probation officer ten days prior to any change in residence or employment;
7) the defendant shall refrain from excessive use of alcohol and shall not purchase, possess, use, distribute, or administer any
controlled substance or any paraphernalia related to any controlled substances, except as prescribed by a physician;
8) the defendant shall not frequent places where controlled substances are illegally sold, used, distributed, Or administered;
9) the defendant shall not associate with any persons engaged in criminal activity, and shall not associate with any person
convicted of a felony unless granted permission to do so by the probation officer,
10) the defendant shall permit a probation officer to visit him or her at any time at home or elsewhere and shall permit
confiscation of any contraband observed in plain view of the probation officer;
11) the defendant shall notify the probation officer within seventy-two hours of being arrested or questioned by a law
enforcement officer;
12) the defendant shall not enter into any agreement to act as an informer or a special agent of a law enforcement agency
without the permission of the court; and
13) as directed by the probation officer, the defendant shall notify third parties of risks that may be occasioned by the
defendant's criminal record or personal history or characteristics, and shall permit the probation officer to make such
notifications and to confirm the defendant's compliance with such notification requirement.
Case 3:10-cr-00106--RCJ -VPC Document 24 Filed 04/2T3/11 Page 3 of 5
AQ,245/3 (Rev. 09/08) Judgment in a Criminal Case
Sheet 3 - Promisee
DEFENDANT: KENNETH J. MCKENNA
CASE NUMBER: 3:1 0-cr-0 1 06-RCJ-VPC
Judgment-Page 3 OF 5
SPECIAL CONDITIONS OF PROBATION
1. Possession of Weapons - You shall not possess, have under your control, or have access to any firearm,
explosive device, or other dangerous weapons, as defined by federal, state, or local law.
2. Warrantless Search - You shall submit to the search of your person, property, residence or automobile
under your control by the probation officer or any other authorized person under the immediate and
personal supervision of the probation officer, without a search warrant to ensure compliance with all
conditions of release.
3. Debt Obligations - You shall be prohibited from incurring new credit charges, opening additional lines
of credit, or negotiating or consummating any financial contracts without the approval of the probation
officer.
4. Access to Financial Information - You shall provide the probation officer access to any requested
financial information, including personal income tax returns, authorization for release of credit
information, and any other business financial information in which you have a control or interest.
5. State and Federal Tax Compliance - You shall maintain all current payment and/or filing Obligations
with respect to federal and state taxes.
6. Internal Revenue Service Compliance - You shall cooperate and arrange with the Internal Revenue
Service to pay all past and present taxes, interest, and penalties owed. You shall file timely, accurate,
and lawful income tax returns and show proof of same to the probation officer.
( )
( )
( )
Tax Year.2004
Tax Year 2005
Tax Year 2006
Tax Year 2007
$64,413.00
$ 394.00
$31,507.00
$56,726.00
AO 24513 (Rev 09108) Judgment in a Criminal Case
Sheet 5 - Criminal Monetary Paialties
DEFENDANT: KENNETH J. MCKENNA Judgment - Page 4 OF 5
CASE NUMBER: 3:10-cr-0106-RCJ-VPC
CRIMINAL MONETARY PENALTIES
The defendant must pay the total criminal monetary penalties under the schedule of payments on Sheet 6.
Assessment Fine Restitution
Totals: $ 50.00 ($25.00 per count) $ WAIVED $153,040.00
Due and payable immediately.
On motion by the Government, IT IS ORDERED that the special assessment imposed by the Court is remitted.
The determination of restitution is deferred until . An Amended Judgment in a Criminal Case
(AO 245C) will be entered after such determination. The defendant shall make restitution (including community restitution) to the following payees in the amount listed below.
If the defendant makes a partial payment, each payee shall receive an approximately proportioned payment, unless specified otherwise in the priority order or percentage payment column below. However, pursuant to 18 U.S.C. § 3664(i), all nonfederal victims must be paid before the United States is paid.
Name of Payee Total Loss Restitution Ordered Priority of Percentage
Clerk, U.S. District Court
Attn: Financial Officer
Case No. 3:10-CR-0106-RCJ-VPC
333 Las Vegas Boulevard, South
Las Vegas, NV 89101
To be disbursed to:
IRS-RACS
Attention Mail Stop 6261
Restitution
333 west Pershing Ave.
Kansas City, Missouri 64108
TOTALS $ I 53 040.00
Restitution amount ordered pursuant to plea agreement: $
The defendant must pay interest on restitution and a fine of more than $2,500, unless the restitution or fine is paid in full before the fifteenth day after the date of judgment, pursuant to 18 U.S.C. §3612(f). All of the payment options on Sheet 6 may be subject to penalties for delinquency and default, pursuant to 18 U.S.C. § 3612(g).

The court determined that the defendant does not have the ability to pay interest and it is ordered that:
the interest requirement is waived for the: ( ) fine ( ) restitution.
the interest requirement for the: ( ) fine ( ) restitution is modified as follows:
*Findings for the total amount of losses are required under Chapters 109A, 110, 110A, and 113A of Title 18 for offenses
committed on or after September 13, 1994 but before April 23, 1996.
( )
( )
( )
( )
Case 3:10-er-001067-Rai -VPC Document 24 Filed 04/2-8/11 Page 5 of 5
AO 2458 (Rev. 09/08) Judgment in a Criminal Case
Sheet 6- Schedule of Payments
DEFENDANT: KENNETH J. MCKENNA Judgment - Page 5 OF 5
CASE NUMBER: 3: l 0-cr-0106-RCJ-VPC
SCHEDULE OF PAYMENTS
Having assessed the defendant's ability to pay, payment of the total criminal monetary penalties are due as follows:
A (X ) Lump sum payment of $ 153,090.00 due immediately, balance due
( ) not later than ; or
( X ) in accordance with ( ) C, ( ) D, ( ) E or (X) F below; or
B ( ) Payment to begin immediately (may be combined with ( ) C, ( ) D, or ( ) E below; or
• ( ) Payment in
over a period of
after the date of this judgment; or
(e.g., weekly, monthly, quarterly) installments of $
(e.g. months or years), to (e.g., 30 or 60 days)
D ( ) Payment in (e.g., weekly, monthly, quarterly) installments of $ over a period of
_ (e.g., months or years), to (e.g., 30 or 60 days) after release from imprisonment to a term
is supervision; or
• Payment during the term of supervised release will commence within (e.g., 30 or 60 days) after release
from imprisonment. The court will set the payment plan based on an assessment of the defendant's ability to pay at
that time; or
• ( X ) Special instructions regarding the payment of criminal monetary penalties:
Payable at the rate of no less than 10% of gross income, subject to an adjustment by the court based
upon ability to pay. Unless the court has expressly ordered otherwise, if this judgment imposes imprisonment, payment of criminal monetary penalties is due during imprisonment. All criminal monetary penalties, except those payments made through the Federal Bureau of Prisons' Inmate Financial Responsibility Program, are made to the clerk of the court. The defendant will receive credit for all payments previously made toward any criminal monetary penalties imposed.
Joint and Several Defendant and Co-Defendant Names and Case Numbers (including defendant number), Total Amount, Joint and Several Amount, and corresponding payee, if appropriate.
The defendant shall pay the cost of prosecution.
The defendant shall pay the following court cost(s):
The defendant shall forfeit the defendant's interest in the following property to the United States:
Payments shall be applied in the following order: (1) assessment, (2) restitution principal, (3) restitution interest, (4) fine
principal, (5) fine interest, (6) community restitution, (7) penalties, and (8) costs, including cost of prosecution and court
costs.
S
EXHIBIT 2
State Bar of Nevada
Attn: Bar Counsel
9456 Double R Blvd., Suite B
Reno, NV 89521
Dear Sir or Madam:
EXHIBIT
ly,
en McKenna
• KEN
MCKENNA 544 WEST 1ST STREET
RENO, NV 89503
(775) 329-6373
FAX (775) 329-2414
ATTORNEY
May 19,2011
ECEIVED
MAY 1 9 2011
STATE BAR OF NEVADA
RENO OFFICE

This letter is provided in accordance with the reporting mandate of Supreme Court Rule
111 (2).

On April 28,2011 I was convicted of two misdemeanor counts. The Judgment is attached hereto. By definition this is not a "serious crime" conviction as defined in Supreme Court Rule 111(6). "Willful failure to file an income tax return" is designated as a "serious crime". This conviction is not a "willful failure to file" case. It is a failure to pay misdemeanor. All tax returns were filed. Since this conviction is not defined as a "serious crime" there is no mandate for an immediate suspension pending appeal as Rule 111(7) is inapplicable. Rule 111(9) is the applicable provision covering the conviction of a crime, which is not a serious crime as defined in Rule 111(6).

The circumstances leading up to the failure to pay for tax years 2004 and 2007 were provided to the Court and a copy is also provided herewith. I would like it to be noted that the 2008,2009 and 2010 taxes have all been paid in full, on time.

I respectfully request that no severe actions be taken in regard to this matter. In order to satisfy my past tax obligation and the Order of the Court I need to continue practicing law to earn income. Any disruption in practice would result in my dissolving my practice completely. Thereby making it much more difficult to fulfill my obligation to pay the back taxes.

I apologize for this failure to keep my taxes current and have worked diligently the last several years to be current at all times. I have succeeded in the most recent years at keeping my taxes current and paid, and will continue to do so in the future. Thank you for your consideration of these circumstances regarding my situation.
•
Statement provided to Federal Court by Ken McKenna;

I had my first job at age 12, a newspaper route. My Mom had finally divorced my alcoholic Father after years of physical abuse that had sent her to the emergency room for stitches and repair of broken bones more than once. In those days the police and the system were no help to victims of what we now call "Domestic Violence". I remember being very young and the police talking to my Mom after the neighbors called because of the noise. The police asked her what she had done to upset him. That is a vivid childhood memory.

She left him when I was in the fifth grade and we moved to an apartment in a terrible part of town, only I didn't know that at the time. My just older brother got married right after that and left us. The next older went to war in Vietnam and the oldest became a notorious criminal. That left me the oldest in the household with my Mom working swing shift as a change girl at the Nevada Club and me taking care of my little brother. The paper route was fifty houses. I delivered their papers on my gold Stingray bike each morning before the sun came up. I made extra money by going door-to-door signing up new customers. My territory grew to one hundred fifty houses by summer and the money helped us survive. I have worked ever since.

At age 15, while in High School, I worked full time (40 hours a week) swing shift as a busboy in the coffee shop at the Mint Hotel in Las Vegas. The minimum wage pay and the $3.00 to $6.00 a night in tips allowed me to save and buy a car when I turned 16 years old. It was a 1956 Chevy. It cost $350.00. Within two weeks the transmission went out.

I worked full time all through High School to help my Mom pay the bills and to provide for myself and my little brother as much as possible. Mom had moved up to a waitress job in my junior year and the tips were much better. We had moved into a singlewide trailer in a remote trailer park on the edge of East Las Vegas. It was cheap. I will always remember those windy days waking up and hearing the sand hitting the side of the trailer. You just knew it was going to end up in your hair and your teeth as soon as you walked outside.

It was a good life, don't mistake that. My Mom was the eternal optimist and even after everything she had been through, she believed in a better tomorrow. She instilled that in me. I have lived by that philosophy and tried to instill it in my loved ones.

There are things you promise yourself when times are tough. I promised myself I would never drink and be like my Father. I failed at that for a few years, but did stop drinking completely over 20 years ago. The single best thing I ever did. I promised myself that I would be the best Father, ever, when I had children. I have lived up to that and even excelled at. I am thankful for being able to be a great Dad.
• •
Both of my children are now young adults. They have chosen not to drink. They are extremely motivated to pursue their careers and are honorable hard working individuals with compassion for others. I have been there for them in every way, every day.

My Dad did do one very important thing for me. He died at a timely moment. Right before I was ready to start College he committed suicide or was killed. I would not have been able to afford go to the University of Nevada Reno without the Social Security survivor's benefits I received from his death.

I worked all kinds of odd jobs through College, including movie theatre usher, Woolworth's sales clerk, parking attendant at Harrah's, night slot machine audit from 2 a.m. to 10 a.m. and desk clerk, among others. I worked full time forty hours a week, nights and weekends while I attended College full time.

I landed a Bellman's job in my last year of College that provided me with the extra money I needed to save up for Law School. I had a safety deposit box at the front desk that jimmy, the manager, had assigned to me. Every night at the end of the shift he and I would change my one-dollar bills into tens and twenties and they would go into the box. I would keep out $4.00 for myself just to have some walking around money. Dollar coins were still available then and I always had one for my morning walk to school. I had given a dollar to a homeless man randomly one day and thereafter he would be waiting for me. I lived in a studio close to the hotel and the University so I could use a bike for transportation or walk. I do have a legitimate story of pushing my bike up the Ralston Street hill in a snowstorm to get to class. Life was great. I was so fortunate to be in school, with the real possibility of bettering my life.

I am positive I was the only student that entered McGeorge Law School that year who paid in cash with hundred dollar bills. I knew early in my life that school was the answer. I learned that in first grade in Mrs. Oquendo's class at Halle Hewetson Elementary School. When I was six my home life was insane. My alcoholic father was so violent that you never knew what to expect. I remember my brothers and I standing in the hall-way outside my parents bedroom in the middle of the night, where we could hear my Mother being beaten, with our baseball bats, hammers, pots and whatever else, trying to muster the courage to break down the door and save her. We never did.

First grade was a Godsend. It was organized, friendly, interesting, there was recognition for doing well and most of all it was safe. I did not want to go home when the last bell rang. I think Mrs. Oquendo knew something. It was a small town then. She took me under her wing and I would stay after school and help with the clean-up chores. That is where my love of school and learning began. Out of a terrible home environment came my desire to learn and succeed in school. That is certainly the way my Mom would have seen it.

Law school was the greatest experience of my life. I learned how to think. They don't allow you to work your first year, but I had no real choice so I got a part-time waiter's job, just weekends and only six hours a night. I made it through that first year with not much sleep and knew I would be able to finish. I worked full time that summer. In my second year I arranged a crazy schedule where I would commute from McGeorge School of Law in Sacramento to Reno on Friday afternoon, stay in a cheap motel and work Friday night, Saturday night and Sunday day as a Bellman at the MGM Grand, the then finest hotel in Reno. The money was great and I could afford to keep going to Law School.

My Mom made it to my Law School Graduation Ceremony. One of the best days ever. She died of a heart attack soon after that. It is thirty plus years later and I have a solo law practice from which I not only make a living, but I am able to reach out and help people who need it. I have two beautiful adult children who are following their dreams. I am now married to Megan, the most wonderful, hard working, compassionate person I have ever known. I am truly blessed.

There are many reasons and circumstances for why I got behind on my taxes. I admit I am not very good at the accounting side of operating my law practice. Over the years I have delegated the day-to-day responsibility for paying the bills to others. It has been a constant struggle at times just to pay the power and phone bill and to keep the doors open. I do appreciate the need to pay my taxes and my neglect in not paying was wrong. It is completely my fault. The 2004 failure to pay represents the bottom of the economic and emotional downward spiral I was on after my divorce. My ex-wife had and still has a severe alcohol and gambling addiction that tore our marriage and family apart. I was serious about the "for better or worse" promise of marriage and the lifelong commitment. I tried to help her in every way, but ultimately could not.

As in all divorces there is an emotional and monetary cost. I settled without trial and agreed to pay for her down payment on a house, monthly alimony for several years and additional substantial lump sum payments each year for the first four years. I got behind on the lumps sum payments and in 2006 she filed a motion to compel, which required me to make up the full amount owed.

The good news about the divorce is the insanity of alcoholism and gambling was over. She had written bad checks one weekend in an amount over $10,000.00. Then after I bailed her out of that mess, two weeks later she did it again. It had to stop. She wanted that lifestyle more than her children or me and when she said she wanted a divorce, I said, "Yes". She did not fight me having primary custody of our still minor daughter, which was wonderful. To date I have paid her over $260,000.00 in settlement and alimony monies. She has gambled away every dime of it. In the last eight years she has not provided any money to our children and her Son has not spoken to her in over four years. I feel sorry for her and all she has missed out on.

I vowed at the time of the divorce to never marry again. I did have the proper sense to break that vow when I was lucky enough to meet Megan. She has made this the best time in my life. Thanks to Megan, who has taken over as office manager, the office is operating in a much more appropriate manner. She makes taxes the priority they should be. Because of her extraordinary efforts and long hours of dedicated work the 2008, 2009, and 2010 taxes are current and paid in full.

I do want to resolve my old tax debt. Maybe even more importantly to the IRS, Megan wants to resolve my old tax debt. She has been paying off the old stuff at every opportunity and staying current on the existing obligations. Over the years I tried to make payment plans and even sent in a large payment in an offer in compromise that had been agreed to, then later rejected. When I hired a tax specialist to represent me in negotiating a settlement of my past due taxes the response of the IRS civil division was to immediately levy my office checking account, causing havoc with the payments I had written checks on. I had to fire the specialist to satisfy the IRS collection agent that they would not have to deal with him.

For the last five years, because of the criminal investigation, the civil division of the IRS said they could not negotiate with me while the criminal matter was pending. This had an effect on my not being able to pay the 2007 taxes. Once Megan realized the impact of the great reduction in income we were experiencing in the first quarter of 2008 and that it would not be possible to pay the taxes out of cash flow, I was willing to sell my home and use the equity to negotiate a global resolution to that year and all the back taxes to get everything squared away at once. The housing market price inflation had created enough equity to do just that if I could negotiate a deal. The civil division would not work with me at all; they continued to say they couldn't. Then the criminal division would not ask them to work with me when I requested it.

I asked my lender about refinancing just to take out enough equity to pay 2007; they would not do it unless the IRS would subordinate their lien to the new note. There still would have been enough equity so that their security position would not have been significantly altered. The civil division of the IRS would not talk to me at all, because of the pending criminal investigation. I am not blaming them for my failure to pay. I put myself in this position and they had no actual obligation to help me. I just relate these events as a way of
• •
explanation of the circumstances. I accept responsibility for my tax debt and as soon as this criminal case is concluded I intend to negotiate a global resolution of all my tax debt. I intend to sell my home and utilize the equity (which has changed due to the downturn) to accomplish this. 

I regret having gotten myself into this situation and I am the only one to blame. I know that and accept full responsibility. It is something I must deal with and fix. I am thankful for Megan who is my true helpmate in handling our finances in a manner I never could. I owe the taxes. I did not pay them on time. I am responsible for that, no one else.

The business is now operating in a responsible manner. Thanks to Megan, I am current on my taxes for 2008, 2009 and 2010 and we are operating the law practice in an appropriate way that makes paying taxes the first priority. Never again will she assume there will be enough money to pay the taxes out of the first quarter cash flow. Now she pays payments throughout the tax year as we go, so that there can be no problem come April 15th.

It has been a learning experience for her and she has been the key to getting me straightened out financially. This is the best time in my life, and I am grateful for all the experiences I have had in living my life. I anticipate many fulfilling days ahead with Megan and "our" children. Both Chris and Chase call Megan mom. She is the Mom they deserve. They love her. We are both intimately involved in their lives, and they share all of their wonderful experiences with us daily.

It is my sincere desire to move forward with my life. I am sorry for my failure to pay taxes timely and I do appreciate the importance and the requirement to do so. This has been a difficult time. Things have changed for the better in my personal life and my business life. The future is bright. If I may continue practicing law I will resolve all of my outstanding tax liabilities by selling my home and will stay current on all future tax obligations.

The undersigned hereby certifies a true and correct copy of the attached of the attached PETITION PURSUANT TO SCR 111 was deposited in the United States Mail at Reno, Nevada, postage fully pre-paid thereon for first class certified mail, addressed to:
Ken McKenna
544 W. First Street
Reno, NV 89503
Certified Mail No. 7010 2780 0003 5429 6332
Dated this 27th day of January, 2012.
Lai.tr6P ers, an Employee
of the State Bar of Nevada
IN THE SUPREME COURT OF THE STATE OF NEVADA
OFFICE OF THE CLERK
IN THE MATTER OF DISCIPLINE OF Supreme Court No. 60152
KENNETH J. MCKENNA, ESQ., BAR NO.
1676.
Respondent.
RECEIPT FOR DOCUMENTS
TO: State Bar of Nevada/Reno/Patrick 0. King
Kenneth J. McKenna
You are hereby notified that the Clerk of the Supreme Court has received and/or filed
the following:
01/31/2012 Filed Petition pursuant to SCR 111.
DATE: January 31, 2012
Tracie Lindeman, Clerk of Court
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