Receiver appointed for law firm $10M in debt; loans taken out by partner before suicide contested
Rejecting a law firm’s argument that having a third party deal with its $10 million in debt would be “overkill,” an Iowa judge has appointed a receiver to oversee the dissolution of Gallagher Langlas and Gallagher.
Veridian Credit Union, whose loans to the Waterloo firm are being contested in litigation, had sought the receivership, reports the Waterloo-Cedar Falls Courier.
Before his suicide last year, as he was faced with allegations including malpractice, theft and forgery, president David Alan Roth took out hundreds of thousands of dollars in loans from Veridian, the newspaper reports. He used a different version of the firm name and a different address and did so without telling his partners, they allege.
Larry Eide of Mason City is now in charge of the firm’s accounts receivable.
As many as 85 malpractice suits against Gallagher may be in the pipeline, the firm said in a filing earlier this month.
Related coverage:
ABAJournal.com: “Law firm is closing down in wake of claimed thefts by former president, attorney says”
