Legal News

Court Rules You Can’t Take Over $100,000 Out of Your Law Firm to Fake a Financial Crisis
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Paul Hansmeier

Summary: A lawyer has been accused of taking money out of his law firm and putting it into a newly created business and his personal account in order to dodge having to pay fines.

The Prenda Law copyright-trolling scheme or the porn-trolling scheme has finally reached an end. Paul Hansmeier, one of the two lawyers the created the scheme has been ordered to pay fines for trying to cover up the financial status of his firm.

  
What
Where


The case started when defendant Spencer Merkel illegally downloaded a porno movie. He was ordered to fork over $3,400 as payment for the video by Prenda Law. Merkel called the law firm Prenda Law to figure out what could be done since he did not have that kind of money lying around.

Prenda Law gave Merkel the option of handing over his computer and all the information on it in exchange for a free lawyer. This was obviously an option that Merkel took and soon after giving his computer to the firm, they started issuing subpoenas for anti-hacking claims. The firm wanted to trace the numerous ISPs to find other customers that would become the defendants “co-conspirators.”

Prenda Law’s actions were eventually exposed and subjected to sanctions that caused the firm to fall apart. The firm as well as Hansmeier’s Alpha Law Firm were sanctioned $64,000. The Alpha Law Firm was found to be another conspirator to the fraud being imposed on the courts.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




When Hansmeier realized that he was about to be exposed and his firm would be sanctioned, he moved $65,970 to his new company Class Action Justice Institute. Once the order was issued, Hansmeier took another $80,000 and put it into his personal account.

The court ruled “Hansmeier abused the corporate-liability shield to avoid paying sanctions in a bad-faith lawsuit for which he was repsonbile.”



Source: http://arstechnica.com/tech-policy/2015/08/appeals-court-prenda-lawyer-who-drained-cash-from-his-law-firm-must-pay-up/

Photo: madisonrecord.com



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Tax Associate Attorney

USA-CA-Los Angeles

Los Angeles office of an AmLaw firm seeks mid-level tax associate attorney with 3-5 years of experie...

Apply Now

Real Estate/Transactional Attorney

USA-PA-Camp Hill

Camp Hill office of our client seeks real estate/transactional attorney with experience. The candida...

Apply Now

Corporate Attorney

USA-WY-Laramie

Laramie office of our client seeks corporate attorney with 2+ years of experience.

Apply Now

RELEVANT JOBS

Associate Attorney

USA-CA-Novato

Attorneys helping people........Brayton Purcell LLP is an extremely busy plaintiff\'s litigation pra...

Apply now

Casualty Attorney II

USA-CA-Irvine

Kuluva, Armijo & Garcia is seeking an experienced and skilled California litigator for the position ...

Apply now

Legal Assistant / Paralegal

USA-FL-Tavares

Tavares boutique and growing law firm is looking for a full-time legal assistant / paralegal to work...

Apply now

Litigation Associate Attorney

USA-CA-San Francisco

Andrus Anderson LLP is a plaintiffs’ firm in San Francisco looking for a full-time associate w...

Apply now

SEARCH IN ARCHIVE

To Top