Bankruptcy Assets are set aside to pay Creditors. All proceeds are carefully reviewed. Courts strictly monitor these accounts. Assets are kept separately solely for the Bankruptcy case.
However, in this case, a lawyer thinks he could get away with using client’s bankruptcy assets. He uses the money to pay his own personal debts.
GRL-Mesa Investments LLC hires Mr. Broidy for Chapter 11 protection in Bankruptcy Court https://www.inforuptcy.com/browse-filings/california-central-bankruptcy-court/2:15-bk-29107/bankruptcy-case-grl-mesa-investments-llc.
The bankruptcy case is resolved and a dismissal is entered.
As part of the resolution of the case, sale of bankruptcy assets occurs. The Court directs Broidy to hold $2,469,926 funds. The purpose of these funds is distribution to the client’s creditors. Balances are paid to the client. Instead, Mr. Brody transfers $1,937,400 bankruptcy assets to client’s creditors. Then, to make matters worse, Mr. Brody steals the remaining $512,526 and pays his personal debts.
$100,000 of the Debtor’s proceeds are found to have been deposited in the lawyer’s personal bank account. Another transfer of $75,000 is made to pay his own creditor.
Mr. Broidy thinks he can transfer funds secretly. Fraudulently, he uses the bankruptcy funds for his debts rather than his client’s debts.
An audit of the missing funds reveals misuse of bankruptcy assets. The audit uncovers Broidy’s fraud. The Court disbars the lawyer. 10-year prison terms exist for this type of fraud.
No tears are shed for lawyer Broidy.
Honesty in Bankruptcy is Essential
I inform my clients that Honesty is the only policy. Lawyers must be honest. Hire a Board Certified Bankruptcy Lawyer. In this way, you can be sure of a lawyer’s legal expertise and honesty.
Bankruptcy funds and assets are carefully monitored and protected.
Filing bankruptcy is an important decision. Choose your lawyer carefully. Trust is important for both the lawyer and the client.
Contact me directly when you need bankruptcy help. Contact Me