The Court granted the United States Trustee’s Motion for Review of Attorney’s Fees in several cases after an evidentiary hearing. The attorneys and law firm were each sanctioned for civil contempt for failure to pay a fine imposed by this Court’s prior Order. An attorney and law firm were ordered to disgorge all attorneys’ fees paid by the debtors in the matters before the Court. Civil penalties were also assessed against the law firm under Section 526(c)(5) as the firm demonstrated a clear and consistent pattern or practice of violating Section 526(a)(1). The Court held that the attorneys’ fees collected were excessive under 11 U.S.C. Section 329(b). The Court also voided the contract between the law firm/debt relief agency and the assisted persons as the law firm failed to perform any service that the agency informed an assisted person it would provide under Section 526(a)(1), (c)(1). The law firm, attorney and any related entities, were also permanently enjoined from practicing before this Court.
Tuesday, November 15, 2016
Sanctions and contempt