Ex-Kaye Scholer Partner Indicted in Bankruptcy Fraud Case
Posted Aug 5, 2010 1:36 PM CDT
By Martha Neil
A former partner of Kaye Scholer has been indicted for bankruptcy fraud for not disclosing his involvement with a major creditor before he left the law firm in 2005.
Stephen Garcia, now 48, allegedly failed to disclose, as required, his considerable involvement with New York City-based Albert Fried & Co., a major creditor of Geneva Steel Holdings Corp. when he represented the Utah steel mill in a Chapter 11 bankruptcy matter, reports Crain's Chicago Business.
“I am very disappointed that these charges were brought, which I deny,” says Garcia, who is now a sole practitioner in Chicago, in an e-mail to the business publication.
Bankruptcy court records show Kaye Scholer settled a malpractice case over the Geneva representation last year, by paying $2 million, refunding $1.7 million in legal fees and waiving several hundred thousand dollars more, Crain's reports.
Michael Solow, who co-chairs Kaye Scholer's executive committee, declined to discuss the matter with Crain's, saying that firm has resolved the Geneva case and is not involved in any related matter.