Theodore Marcus, a former senior attorney at AT&T, is facing allegations from the District of Columbia Office of Disciplinary Counsel for purportedly violating professional ethics rules. The office contends that Marcus disclosed confidential information to a whistleblower involved in litigation against AT&T, thereby intentionally prejudicing his former employer. Additionally, he is accused of breaching rules related to attorney conflicts of interest.
Marcus, who has held a legal license in Washington since 1993, served as in-house counsel at AT&T following its merger with BellSouth in 2006. During his tenure, he chaired a committee overseeing compliance with a Federal Communications Commission (FCC) program that mandates discounted internet access for eligible schools and libraries. In 2011, after receiving an unfavorable performance review, Marcus began communicating with attorneys representing a whistleblower who alleged that AT&T engaged in fraudulent activities concerning reimbursements under this program. The whistleblower’s lawsuits are currently pending in federal courts in Washington and Wisconsin, with AT&T denying any wrongdoing.
In the same year, Marcus informed his superiors at AT&T that he believed the company had made false statements to federal prosecutors regarding its compliance with the program. In response, AT&T commissioned an external law firm to investigate the claims, which concluded that there was no illegal or unethical conduct. The company became aware of Marcus’s disclosures in 2017 through an attorney involved in the whistleblower litigation.
Marcus resigned from AT&T in 2011 and subsequently joined the FCC as a legal advisor. Both Marcus and Phil Fox, the head of the Office of Disciplinary Counsel, have declined to comment on the allegations. AT&T, not a party to the disciplinary proceedings, has also refrained from commenting.
This case underscores the complex ethical considerations faced by in-house counsel when addressing compliance concerns and the potential repercussions of whistleblowing activities.