Afternoon Briefs: Former music executive sues Trump lawyer; attorney charged with sex trafficking minors
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Former music executive sues Trump lawyer Marc Kasowitz
Litigator Marc Kasowitz, known for his representation of former President Donald Trump, is facing a malpractice lawsuit by a former Universal Music Group top executive. Charlie Walk has claimed that he was pressured to sign a one-sided settlement agreement after facing a baseless accusation of sexual harassment. A Kasowitz spokesman expressed confidence that the case will be dismissed. According to the Hollywood Reporter, Walk sought to file the case under seal, but Kasowitz is opposing a partial sealing. At issue, according to the Hollywood Reporter, “is whether a case that focuses on whether a lawyer fulfilled his duties becomes a tool for puncturing secrecy.” (The Hollywood Reporter here and here)
Lawyer is charged with sex trafficking minors
Lawyer Matthew Erausquin, 46, of Arlington, Virginia, has been charged with sex trafficking of minors and production of child pornography. Prosecutors have alleged that Erausquin lured underage girls into commercial sex arrangements and secretly recorded some of the sexual activity. He met some of the girls on a “sugar daddy” website and a dating app. Erausquin is a founding partner of the Northern Virginia affiliate of the law firm Consumer Litigation Associates. (Department of Justice press release, the Washington Post)
Alternative fees can put new pressure on associates
The billable hour has been much maligned for creating pressure on associates who seek to meet minimum targets. But flat-fee arrangements can also create pressures for associates who will be evaluated on how efficiently they are working. That conclusion is reflected in ALM’s 2021 Mental Health and Substance Abuse survey, which found that nearly 70% of law firm respondents said alternative billing does not reduce stress. (Law.com)
Lawyer is convicted in $25M fraud scheme
Federal jurors have convicted 56-year-old lawyer Billy Seabolt of Lynchburg, Virginia, for his role in a $25 million investment fraud scheme that defrauded more than 300 mostly older victims. Seabolt was a legal counsel to a private equity company called the Dominion Private Client Group, which sold unregistered securities carrying purported “fees” that amounted to 20% to 70% of investor funds. Seabolt was convicted of conspiracy and mail fraud. He was convicted along with 51-year-old Daryl Bank of Port St. Lucie, Florida, who was accused of creating the Dominion Private Client Group and transferring the fees to companies that he controlled. Prosecutors said Seabolt was involved in the development of many of the scheme’s fraudulent investments and corporations. (Law360, Department of Justice press release)
