|
Michael G. Mack is a Wisconsin attorney
whose State Bar identification number is
1018553. Mack practices law in Brookfield,
Wisconsin. Mack was first licensed to
practice law in Wisconsin on May 18, 1987.
Facing financial difficulties, Mack
filed a Chapter 13 bankruptcy petition.
Mack prepared his own petition, schedules,
and Statement of Financial Affairs and
signed them under penalty of perjury. Mack
filed schedules showing ownership of one
checking account, no jewelry, a Chevrolet
Suburban, and ownership of his law firm,
valued at $15,000, with net monthly income
of $1,500. Counting monthly gifts from his
parents, Mack estimated joint monthly income
of $4,500. In addition, Mack indicated that
he had not transferred any property within
two years of filing the petition and had not
closed any financial accounts within one
year of filing the petition.
On February 19, 2015, Mack testified
at a ¶ 341 meeting of creditors before
Trustee Rebecca Garcia that the schedules he
filed were true, correct and complete.
Seeking to update his financial information,
Mack testified that he had sold a 1961
Austin Healey for $4,200, that he was no
longer receiving financial assistance from
his parents, that he would be filing amended
schedules, and that he would provide the
Trustee his 2012 and 2013 personal and
business tax returns along with a profit and
loss statement for the law firm.
When Mack did not appear for the
next scheduled creditors’ meeting (and
failed to supply the promised information to
the Trustee), the Trustee moved to dismiss
the Chapter 13 petition. In response, Mack
filed an application to convert his Chapter
13 petition to a Chapter 7 petition.
The Trustee held a ¶ 341 meeting of
creditors on May 27, 2015. Mack appeared
and testified under oath that he had not
made any transfers of property in the past 4
years, that he had received money from his
parents in the form of a loan (approximately
$11,000), that he prepared the schedules
filed in the case, had reviewed them
carefully, that they listed all his assets
and debts (including those of his spouse),
and that the schedules were true and
correct. Mack testified that the schedules
accurately listed the value of all his
personal property. Mack further testified
that he would be amending his schedules to
include a claim against a creditor who was
violating the stay in the proceedings.
Later, Mack testified before the Trustee
that the gross business income from his law
firm was about $1,500 a month, and, coupled
with the $3,000 a month he received from his
parents, his total income was $4,500.
On July 10, 2015, Mack filed an
amended Schedule B and Schedule C. In his
amended Schedule B, Mack revised the value
of his law firm to $3,000 and added a
potential claim against a creditor. Mack
signed Amended Schedule B, certifying under
penalty of perjury “that the information
contained in the foregoing Amended Schedule
B is true and correct to the best of my
knowledge and belief.” Also on July 10,
2015, Mack filed an Amended Statement of
Financial Affairs listing the amount of
money his parents had loaned him in 2014 and
2015, or $11,000. Mack did not make any
other amendments to the Statement of
Financial Affairs.
Mack’s disclosures in his bankruptcy
petition and associated schedules were
false, misleading, and inaccurate. Mack did
not list the sale of the 1961 Austin Healey
in his amended Statement of Financial
Affairs. In addition, Mack did not disclose
that his parents had loaned him $25,000 in
February, 2013, that these funds were
deposited into an undisclosed bank account
owned by Mack, and that in March, 2013,
$22,000 of these proceeds were transferred
to another undisclosed bank account owned by
Mack. These transfers were required to be
disclosed on the Statement of Financial
Affairs.
In addition, Mack did not list in
either Amended Schedules B or C, or in the
Amended Schedule of Financial Affairs, that
he owned interests in other business
entities and had other bank accounts besides
those disclosed in his schedules. He also
failed to disclose the closure of multiple
bank accounts owned by him and his spouse
prior to filing for bankruptcy.
Moreover, in his Amended Statement
of Financial Affairs, Mack stated that the
“income from employment or operation of
business” was $25,000. Yet, draft 2014 tax
returns provided by Mack to the Trustee
showed gross receipts of $219,926 for the
calendar year 2014. Furthermore, in
Schedule I of his Petition, Mack stated his
business income was $1,500, when copies of
bank statements obtained by the Trustee show
that Mack and his spouse were charging
approximately $4,600 a month in personal
expenses and personal business draws from
the various Mack-owned bank accounts. Mack
also failed to disclose in his Petition or
Schedules B and C ownership in a variety of
other entities he and his wife owned in
2014. Mack signed a declaration that, “I
declare under penalty of perjury that I have
read the answers contained in the foregoing
statement of financial affairs and any
attachments thereto and that they are true
and correct.” Mack’s declaration was false
as the Petition and schedules he filed
contained false, misleading, and inaccurate
information.
On August 17, 2015, Mack received a
discharge in his Chapter 7 petition. The
Trustee’s Report of No Distribution showed
discharged debts of $1,174,976 (not
including value of collateral or debts
excepted from discharge).
On October 20, 2015, Mack’s spouse
filed a Chapter 13 petition and later a
Chapter 7 petition. Mack’s wife was
represented by another attorney from Mack’s
law firm. Based on information provided by
Mack’s wife in her bankruptcy schedules, and
what the Trustee perceived to be
misrepresentations contained in the sworn
schedules and the false testimony provided
by Mack regarding the accuracy of his own
bankruptcy schedules, the Trustee sought to
reopen and revoke Mack’s Chapter 7
bankruptcy discharge. Mack ultimately
stipulated to the waiver of his discharge.
|
|