Bankruptcy Incompetence Leads To Consent Disbarment
An attorney’s mishandling of his bankruptcy practice has led to his consent to disbarment in Illinois
Movant has been licensed to practice law in Illinois since October 29, 1980. Between 1980 and 2009, more than 95% of the cases Movant handled involved no bankruptcy issues. Beginning in 2012, Movant refocused his practice and his bankruptcy caseload grew to at least 95% of his practice.
Between 2012 to 2014, Movant employed retired real estate broker Mario Perea (“Perea”) to assist him in locating and obtaining clients. Movant paid Perea $750 each week and Perea worked from Movant’s office space to contact and meet with prospective clients. Prospective clients asked for Perea, not Movant, upon their arrival at Movant’s office; and Movant also authorized Perea to meet prospective clients in Movant’s absence. Between 2012 and 2014, Perea assisted Movant in finding at least 24 clients, including Artemio and Veronica Torres (“the Torreses”), to represent in bankruptcy matters.
Between 2012 and 2014, Movant advised several clients to file Chapter 13 bankruptcy matters. Movant lacked sufficient knowledge about current bankruptcy laws and requirements to competently advise those clients regarding their interests and proposed courses of action. Between 2012 and 2014, Movant filed bankruptcy matters without the required supporting documents, including debtor plans and schedules; he missed filing dates in multiple matters and did not execute at least five Court Approved Retention Agreements (“CARA”) within the time frame required by statute.
Between 2012 and 2014, Movant filed several Chapter 13 cases that did not meet the eligibility requirements based on his clients’ mortgage debt, converted cases from Chapter 13 to Chapter 7 without a basis in law for doing so and without regard to whether that action was consistent with his clients’ best interests; and he did not keep his clients informed about the status of their cases. At least one of Movant’s clients had their Chapter 13 bankruptcy case dismissed based on Movant’s failure to file required documents and debtor plans with the court in the required time frame…
On October 1, 2014, the court entered an agreed order suspending Movant from practice in the United States Bankruptcy Court in the Northern District of Illinois. In the agreed order, Movant admitted that he was not familiar with the relevant bankruptcy statutes and Bankruptcy Code amendments when he filed the Torreses’ bankruptcy petitions and at least 20 additional petitions causing dismissals in at least two cases and delays in all of them. Movant agreed to be suspended from the practice in the United States Bankruptcy Court in the Northern District of Illinois, for one year and until further order of the court, effective October 1, 2014. As of the filing of this Statement of Charges, Respondent has not been reinstated by the United States Bankruptcy Court.
During the relevant time period and now, Movant was suffering from chronic mental health disorders. Movant was diagnosed with depression approximately eighteen years ago and was clinically diagnosed with situational bipolar disorder approximately eight years ago. Movant takes a number of strong medications to treat his bipolar disorder, including Escitalopram Oxalate (Lexapro,) Abilify, Duloxetine HCL DR (Cymbalta), and Clonazepam.
The motion will be considered by the Illinois Supreme Court. (Mike Frisch)