No. 20-6429

John L. Howell v. Gordon, Arata, McCollam, Duplantis & Eagan, L.L.C., et al.

Lower Court: Fifth Circuit
Docketed: 2020-11-25
Status: Denied
Type: IFP
IFP
Tags: bankruptcy bankruptcy-fraud chapter-7-proceeding embezzlement estate-administration fiduciary-duty fraud injunction sanctions secured-creditor trustee-misconduct
Key Terms:
JusticiabilityDoctri
Latest Conference: 2021-02-19
Question Presented (AI Summary)

May the lower court endorse a trustee's scheme to defraud secured estate creditors?

Question Presented (from Petition)

QUESTION PRESENTED Petitioner is a secured estate claimant in the Chapter 7 bankruptcy of Donald Grodsky. Pursuant to a Promissory Note and Security Agreement executed by the Debtor and attached to Petitioner's timely filed proof-of-claim, Petitioner retained a Purchase Money Security Interest (“PMSI’), and an undivided 100% equitable interest, in a mortgage note that was the estate's sole asset. In other words, the Debtor and/or his estate, had no, zero, equity in the mortgage note that was in the Trustee's possession. Despite this fact, while Petitioner's secured claim was outstanding, and without satisfying the Promissory Note attached to his proof-of-claim, the Trustee liquidated the mortgage note and moved for an order authorizing him to embezzle proceeds that were security for the Promissory Note (and, thus, were rightfully Petitioner's property) by distributing them to himself and his attorneys as commissions and fees. Thereafter, with Petitioner's claim still in limbo, the Trustee certified that there were no secured creditors and closed Grodsky's bankruptcy proceeding. The question presented is: May the lower court endorse (by dismissing an appeal as frivolous) a trustee's scheme to defraud secured estate creditors by: (1) refusing to administer a Chapter 7 bankruptcy estate having only one asset for more than five (5) years; (2) breaching his fiduciary duty to estate claimants by refusing to satisfy or object to their ; claims against the estate for more than seven (7) years; (3) liquidating property that is security for creditors’ secured claims and in which the estate has only a titled interest and no, zero, equitable interest; (4) embezzling money that rightfully belongs to secured estate claimants by fraudulently obtaining an order permitting him to abscond with proceeds of the security for their claims as commissions and fees; (5) entering false evidence into the records of bankruptcy proceedings; (6) falsely certifying that the estate has no secured creditors while a timely filed secured claim remains unsatisfied and outstanding; and (7) closing a bankruptcy case while secured claims remain in limbo? if PARTIES TO THIS PROCEEDING John L. Howell, pro se David V. Adler, U.S. Trustee Adler’s David J. Messina, Fernand L. Laudumiey IV, Chaffe McCall, L.L.P., Gordon, Arata, Montgomery, Barnett, McCollam, Duplantis, & Eagan, LLC, » Leslie S. Bolner, Glen R. Galbraith, ‘ Seale & Ross, PLC. David J. Messina, pro se Fernand L. Laudumiey IV, pro se Glen R. Galbraith, pro se : Leslie S. Bolner, pro se Gordon, Arata, Montgomery, Barnett, McCollam, Duplantis, & Eagan, LLC Its Counsel: C. Peck Hayne Jr. Chaffe McCall, L.L.P. Its Counsel: David J. Messina, Fernand L. Laudumiey IV Seale & Ross, PLC Its Counsel: Glen R. Galbraith, Leslie S. Bolner

Docket Entries

2021-02-22
Petition DENIED.
2021-01-14
DISTRIBUTED for Conference of 2/19/2021.
2020-10-26
Petition for a writ of certiorari and motion for leave to proceed in forma pauperis filed. (Response due December 28, 2020)

Attorneys

John Howell
John L. Howell — Petitioner
John L. Howell — Petitioner