NEW YORK, Jan 10 (Reuters) - Since 1978, the New York State Commission on Judicial Conduct has brought disciplinary charges against approximately 750 judges. And in nearly all of the cases, the proceedings have taken place behind closed doors.

On Tuesday, however, in a Manhattan courtroom, Bronx Surrogate Lee Holzman was exactly where he wanted to be: in the witness stand defending himself publicly against misconduct allegations, thanks to his unusual decision to waive confidentiality.

It was only the 11th time a judge has done so, according to Robert Tembeckjian, the commission's administrator and counsel. Holzman's handwritten note waiving confidentiality did not include an explanation.

The surrogate is accused of failing to take proper action when he learned that a lawyer in the public administrator's office had been taking excessive advance fees in violation of both court protocol and state law.

The public administrator's office generally handles estates that lack an administrator or a known heir.

In nearly a full day of testimony, Holzman said he was "shocked" to learn in 2006 that the former public administrator, Esther Rodriguez, had approved advance fees for lawyer Michael Lippman on numerous occasions.

In prior testimony, Rodriguez had also admitted to hiring a man whom she was dating to clean up apartments for estates, without revealing her personal relationship to Holzman. After noticing that Rivera was charging more than seemed appropriate, Holzman said he told Rodriguez not to use Rivera anymore, only to find out later that she had rehired him, using what Holzman essentially described as a shell company Rivera had formed.

As a result, Holzman demanded Rodriguez's resignation in early 2006. He said he soon found out she had been approving advance fees for Lippman in violation of the court's protocol.

Lippman was charged with grand larceny and fraud in 2010 after the Bronx district attorney's office accused him of billing more than $300,000 in excessive fees.

'STICKY SITUATION'

"I was shocked when I learned that apparently Ms. Rodriguez, at the request of Mr. Lippman, had deviated from that protocol," Holzman said Tuesday. But he said he was not immediately aware that some of the fees also exceeded statutory guidelines.

Holzman acknowledged that learning of Lippman's advance fees put him in a "sticky situation."

"I appointed him, but I was not his client," he said. "The public administrator was. And the public administrator was the one who paid him the fees."

The commission has faulted Holzman for failing to report Lippman's conduct either to the departmental disciplinary committee or law enforcement authorities. Instead, it claims, he kept Lippman on staff, had him work for less money and required him to turn over any fees he earned to repay the excessive fees he had billed in previous cases.

That remedy failed to make earlier estates whole, the commission argues, while leaving later estates with more money than they would have had otherwise, since Lippman was working for lower fees.

It has also charged him with lax oversight of the public administrator's office.

RANGE OF PUNISHMENTS

The hearing originally began in September, but two hours after Rodriguez took the stand, Holzman moved to have the proceedings stayed until the pending criminal case against Lippman was resolved.

Holzman said in court papers that Lippman would assert his Fifth Amendment right against self-incrimination if he were asked to testify while his criminal case was pending, and he argued that he could not adequately defend himself against the commission's charges without calling Lippman as a witness.

In December, the Appellate Division, First Department, denied Holzman's bid to delay the proceedings.

The proceeding, which resumed in mid-December, is taking place in front of retired state Supreme Court Justice Felice Shea, who will report her findings to the commission.

The commission can choose whether to accept her report and will then decide whether to discipline Holzman. Potential punishment ranges from an admonishment to removal from office.

Holzman will continue his testimony Wednesday before facing cross examination from the commission's lawyers.

The case is the Matter of the Honorable Lee Holzman.

For the commission: Brenda Correa and Mark Levine

For Holzman: David Godosky of Godosky & Gentile

(Reporting by Joseph Ax)

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