Legal Ethics

2 Lawyers in Bankruptcy Case Crossfire

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A well-known defense lawyer is the latest central Florida attorney to be caught in the crossfire between high-profile client Lou Pearlman, a jailed music producer with $500 million in claimed debt, and a bankruptcy trustee.

The trustee is asking a bankruptcy judge to compel attorney Robert Leventhal, who has been representing Pearlman concerning civil IRS tax audits, to comply with subpoenas seeking documents, reports the Orlando Sentinel.

Meanwhile, the trustee asked the judge last week to find another lawyer for Pearlman, Reca Rene Chamberlain, in contempt of court for similar reasons. Like Leventhal, she is asserting attorney-client privilege, according to the St. Petersburg Times.

“We received correspondence from Pearlman’s attorney that he is not waiving any privilege,” Leventhal tells the Sentinel. “So, I just can’t turn something over and find out that we violated someone’s rights. We’re caught in the crosshairs between someone’s criminal counsel and the trustee.”

Pearlman is reportedly jailed in Orlando awaiting trial on federal bank fraud charges as his assets are being liquidated in bankruptcy court to satisfy some $500 million in claims. He is credited with creating *NSYNC and the Backstreet Boys.

Orlando Sentinel (“Trustee: Pearlman lawyer needs to help or go to jail”).

Orlando Sentinel (“Bankruptcy trustee files motion against former Pearlman lawyer”).

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