The Man Who Wasn’t Michael Taylor

An attorney who was permanently disbarred by the Eastern District of Kentucky  Bankruptcy Court has received identical reciprocal discipline from the Kentucky Supreme Court.

While suspended by the bankruptcy court. he continued to represent a couple

In October 2017, the Blackwelders were contacted by a real estate agent letting them know that their house was in foreclosure. O’Malley had not been negotiating their loan modification as promised, and the Blackwelders had to accept a “cash for keys” agreement to move to a rental home. In December 2017, the Blackwelders requested their funds from O’Malley. O’Malley made several promises to pay them their funds, but never returned their money. The Blackwelders’ bankruptcy case was closed without discharge in late 2017 and, although O’Malley was suspended, he continued to give assurances that he would reopen their bankruptcy case until March 2018 when the Blackwelders contacted Beverly Burden, a Chapter 13 Bankruptcy Trustee to resolve the issues.

Burden discovered that a “Michael Taylor” had entered an appearance for the Blackwelders in their case. Burden contacted Michael Taylor and both he and the Blackwelders assured Burden that Taylor was not the Blackwelders’ attorney. O’Malley, who knew Taylor, had forged his name on legal documents pertaining to the Blackwelder case, as O’Malley was suspended from the practice of law. On July 9, 2018, Burden filed a Motion of the U.S. Trustee to Disbar Attorney Justin O’Malley, and for Sanctions, Fees Disgorgement, and Other Relief. Douglas Howard entered an appearance on behalf of O’Malley and a hearing was eventually set for September 20, 2018. Joint Stipulations were entered on September 19 with O’Malley admitting to (1) depositing the Blackwelders’ funds into his personal bank account which he used for such expenses as “eating out, daily coffee, salon visits, bookstore purchases, movie rentals, and trips to Best Buy;” (2) failing to return escrow funds; (3) forging the Blackwelders’ signatures in court filings; and (4) forging Michael Taylor’s name and signature in multiple court filings without his knowledge. To add insult to injury, on the same day, Douglas Howard filed a Motion to Withdraw because “the undersigned received a tendered retainer amount that was returned today [not sufficient funds], due to the account being closed.” Judge Gregory R. Schaaf granted Howard’s Motion to Withdraw and rescheduled the hearing for October 3, 2018.

O’Malley failed to appear for the October 3 hearing and eventually the parties signed an Agreed Order wherein O’Malley agreed to be permanently prohibited from practice in the United States Bankruptcy Court for the Eastern District of Kentucky and to pay the Blackwelders $10,500 within 30 days.

 (Mike Frisch)