Wednesday, August 1, 2012

Disciplinary Charges Involve Bankruptcy Fraud

The Illinois adminstrator has filed a disciplinary complaint based on charges arising from the attorney's guilty plea to bankruptcy fraud.

In noting the criminal charges, the ABA Journal reported that the attorney formerly was a Kaye Scholer partner:

A former partner of Kaye Scholer has been indicted for bankruptcy fraud for not disclosing his involvement with a major creditor before he left the law firm in 2005.

Stephen Garcia, now 48, allegedly failed to disclose, as required, his considerable involvement with New York City-based Albert Fried & Co., a major creditor of Geneva Steel Holdings Corp. when he represented the Utah steel mill in a Chapter 11 bankruptcy matter, reports Crain's Chicago Business.

“I am very disappointed that these charges were brought, which I deny,” says Garcia, who is now a sole practitioner in Chicago, in an e-mail to the business publication.

Bankruptcy court records show Kaye Scholer settled a malpractice case over the Geneva representation last year, by paying $2 million, refunding $1.7 million in legal fees and waiving several hundred thousand dollars more, Crain's reports.

Michael Solow, who co-chairs Kaye Scholer's executive committee, declined to discuss the matter with Crain's, saying that firm has resolved the Geneva case and is not involved in any related matter.

(Mike Frisch)

http://lawprofessors.typepad.com/legal_profession/2012/08/the-illinois-adminstrator-has-filed-a-disciplinary-complaint-based-on-charges-arising-from-the-attorneys-guilty-plea-to-bankr.html

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