Sanctions and Irony and Fraud, Oh My!

In the “Oh My” CategoryTownson v. Kakol (In re Day) - Among the major issues in this case is whether an attorney violated the Georgia Rules of Professional Conduct regarding conflicts of interest and limitations on representation by accepting his fee from a prospective home purchaser to file a skeletal Chapter 13 bankruptcy petition for an elderly debtor to invoke the automatic stay to stop a foreclosure - and then do nothing else so that the case could be quickly dismissed - for the sole purpose of buying time so the purchaser, who also selected the debtor's attorney, could acquire the debtor's home at a fire sale price, which would have cost the debtor substantial equity, and which home the debtor really did not want to sell? The answer to that question is yes, those Georgia Rules of Professional Conduct were violated by the attorney's conduct on the facts of this case.

Remember this name: Keith Bray – Disbarred lawyer (in CA), working as a petition preparer - Defendant . . .  liable for (1) $22,500 in fines payable to the UST, (2) $7,990 in damages payable to the Debtors, and (3) $3,995 in forfeited fees payable to the Debtors. Also permanently enjoined from acting as bankruptcy petition preparers in the District of Oregon.

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