The appeal panel of three Austin judges voted to rescind Santulli’s license because he did not comply with a previous court order requiring him to pay off his debts. The panel further noted that ''he lacked the trustworthiness necessary to represent clients.''
In 2001, Santulli was granted a probationary license by the board on the condition and in conjunction with the Consumer Credit Counseling Service that he was to repay a ''substantial amount of student loan and personal debt.''
Another hearing was held in December 2002 and concluded that Santulli had not repaid his debt and the board was concerned that Santulli might seek illegal means to pay off his debt including ''short-shrift his clients or convert money from his clients to cover his debt.''
Santulli's probationary license was extended 6 months with the presumption that Santulli would repay his debt or absolve a portion of it through bankruptcy. The board recommended that his license be revoked the following year when it was discovered that Santulli had not made an effort to eliminate the debt.
In the appeals court, Santulli argued that the initial court's ruling requiring him to make ''suitable arrangements'' to take care of his debt ''was arbitrary and capricious and that the revocation was not supported by substantial evidence.''
Santulli also argued that the board made a mistake when they concluded that he lacked ''good moral character''. At the time, Santulli was representing himself but stated that he will hire a lawyer to appeal the court's decision.
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