07/06/2005
Counsel Have a Duty to Determine if Fees Come From Funds Subject to a District Court Freeze Order and Must Disgorge Fees Received in Violation of That Order
Federal Trade Commission v. Assail, Inc.
2005 WL1181092 (May 19, 2005 5th Cir. (Texas))
2005 WL1181092 (May 19, 2005 5th Cir. (Texas))
Brief Summary
At least in the Fifth Circuit, lawyers who receive fees that may have been paid out in violation of substantive criminal law or of a court order receive those fees at their peril and subject to disgorgement. Whether, or to what extent, the court’s holdings will be extended to other jurisdictions or other circumstances remains to be seen.
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