Contingency Fee Collateral Allegedly Lost When Cauley Forfeited Law License

by George Waldon  on Monday, Oct. 19, 2009 2:23 pm  

Centennial "took the power of attorney from Cauley in an effort to step into his shoes," Henry said. "Ethically and legally, my clients are prohibited from paying Cauley or Centennial a contingency fee."

Earlier this year, Cauley's purported net worth was $100 million. But the same cash-flow problems that prompted him to steal client funds impaired his ability to stay current on his Centennial debt.

Of the $13.9 million in question, $1.5 million allegedly represents money loaned to Cauley to bring him current on past-due payments.

That loan is dated May 29, one day after the Arkansas Supreme Court accepted the voluntary surrender of Cauley's law license and three days before his guilty plea to wire fraud and criminal contempt of court in the Bisys case.

 

 

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