Bankruptcy

Chicago Cul-De-Sac; Lawyer is Accused of Creating Sham Secured Creditor to Shield Client Assets in Bankruptcy Court

The former partner, Edward Lee Filer, was charged in a July 11 federal indictment with two counts of wire fraud and eight counts of bankruptcy fraud, according to a press release by the U.S. Attorney’s Office for the Western District of Wisconsin. Crain’s Chicago Business covered the indictment.

LIT COMMENTARY

We’re back sniffin’ at the lawyer criminal case, but there’s time to pass yet…

Updated on Feb 23, 2021

02/05/2021 79 NOTICE of of Expert Witness by USA as to Edward Lee Filer, Robert Joseph Gereg, Paul Michael Kelly (Attachments: # 1 Exhibit Curriculum Vitae)(Snell, Jeffrey) (Entered: 02/05/2021)

UPDATE: JAN 20, 2021

With the coronavirus impacting 2020, it’s no surprise when LIT burled around the cul-de-sac to see that the proceedings are still ongoing – to either a jury or bench trial on June 7, 2021. Save the date and we’ll check back in nearer the time to see if there’s been any serious movements.

p.s. you should read this court order by the Judge to get a tone for the case.

United States District Court
Northern District of Illinois – CM/ECF LIVE, Ver 6.3.3 (Chicago)
CRIMINAL DOCKET FOR CASE #: 1:19-cr-00565-1

Case title: USA v. Filer et al Date Filed: 07/11/2019

 

Date Filed # Docket Text
01/19/2021 78 MINUTE entry before the Honorable Harry D. Leinenweber: Telephonic ruling on motion hearing held. Defendant’s motion for a bench trial 74 is denied without prejudice with leave to re-file one month prior to the scheduled jury trial of 6/7/21. Telephonic status hearing set for 4/8/21 at 9:00 a.m. To join the conference parties shall dial: 888-684-8852 or 215-446-0155, access code: 9582710#. Security code (if asked): 8115. Mailed notice(maf) (Entered: 01/19/2021)
01/14/2021 77 MINUTE entry before the Honorable Harry D. Leinenweber: To join the conference on 1/19/21, parties shall dial: 888-684-8852 or 215-446-0155, access code: 9582710#. Security code (if asked): 8115. Mailed notice(maf) (Entered: 01/14/2021)
01/11/2021 76 REPLY by Edward Lee Filer to MOTION by Edward Lee Filer for Bench Trial as to Edward Lee Filer, Robert Joseph Gereg 74 (Attachments: # 1 Exhibit A)(Litoff, Eli) (Entered: 01/11/2021)
01/04/2021 75 RESPONSE by USA as to Edward Lee Filer, Robert Joseph Gereg, Paul Michael Kelly regarding MOTION by Edward Lee Filer for Bench Trial as to Edward Lee Filer, Robert Joseph Gereg 74 (Snell, Jeffrey) (Entered: 01/04/2021)
12/10/2020 74 MOTION by Edward Lee Filer for Bench Trial as to Edward Lee Filer, Robert Joseph Gereg (Litoff, Eli) (Entered: 12/10/2020)
12/03/2020 73 MINUTE entry before the Honorable Harry D. Leinenweber: The Court grants Defendant Filer’s motion for status hearing 71 . Telephonic motion hearing held. Filer shall file his motion for bench trial on or before 12/10/20. The Government shall respond on or before 1/4/21. Filer shall reply on or before 1/11/21. The Court will rule by mail. Telephonic status hearing set for 1/19/21 at 9:45 a.m. Mailed notice (maf) (Entered: 12/03/2020)
11/30/2020 72 MINUTE entry before the Honorable Harry D. Leinenweber: Telephone Conference set for 12/3/2020 at 10:00 a.m.re: MOTION for Status Hearing 71 . Dial in information will be provided. Mailed notice (maf) (Entered: 11/30/2020)
11/30/2020 71 MOTION by Edward Lee Filer for Status Hearing as to Edward Lee Filer, Robert Joseph Gereg (Litoff, Eli) (Entered: 11/30/2020)
10/07/2020 70 ORDER as to Edward Lee Filer, Paul Michael Kelly: Telephonic status hearing held. Defendants consented to proceed via telephone. Jury trial set for 6/7/21 at 10:00 a.m. Without objection, time is excluded to 6/7/21 pursuant to 18 U.S.C. § 316l(h)(7)(A)(B) in the interest of justice and for reasons stated on the record. Signed by the Honorable Harry D. Leinenweber on 10/7/2020. Mailed notice. (sxb, ) (Entered: 10/07/2020)
10/06/2020 68 MINUTE entry before the Honorable Harry D. Leinenweber: Telephone Conference set for 10/7/20 at 10:15 a.m. is re-set to 10/7/20 9:45 a.m. for arraignment on the second superseding indictment and for further status. Mailed notice (maf) (Entered: 10/06/2020)
09/18/2020 67 MINUTE entry before the Honorable M. David Weisman as to Edward Lee Filer, Robert Joseph Gereg, Paul Michael Kelly: Bonds previously issued in 19-CR-00565 to stand as bond in this instance as to all defendants. Mailed notice. (sxb, ) (Entered: 09/21/2020)
09/18/2020 66 DESIGNATION Sheet: FELONY (Category 3). (sxb, ) (Entered: 09/21/2020)
09/18/2020 64 SECOND SUPERSEDING INDICTMENT as to Edward Lee Filer (1) count(s) 1ss-2ss, 3ss-4ss, 5ss, 6ss, 7ss-8ss, 9ss-10ss, 11ss, 13ss, 14ss, 15ss, Robert Joseph Gereg (2) count(s) 1ss-2ss, 3ss-4ss, 5ss, 6ss, 7ss, 9ss-10ss, 11ss, 12ss, 13ss, 14ss, 16ss-21ss, Paul Michael Kelly (3) count(s) 1ss-2ss, 3ss-4ss, 5ss, 9ss-10ss, 13ss (sxb, ) (Entered: 09/21/2020)
09/01/2020 63 MINUTE entry before the Honorable Harry D. Leinenweber: Telephonic status hearing held and continued to 10/7/20 at 10:15 a.m. In the interest of justice, time is excluded through and including 10/7/20 pursuant to 18 U.S.C. § 3161(h)(7)(A)(B). Mailed notice(maf) (Entered: 09/01/2020)
08/28/2020 62 STATUS REPORT by USA as to Edward Lee Filer, Robert Joseph Gereg, Paul Michael Kelly (Netols, Brian) (Entered: 08/28/2020)
07/10/2020 61 ORDER as to Edward Lee Filer, Robert Joseph Gereg, Paul Michael Kelly Fifth Amended General Order 20-0012 IN RE: CORONAVIRUS COVID-19 PUBLIC EMERGENCY Signed by the Chief Judge Rebecca R. Pallmeyer on July 10, 2020. This Order does not extend or modify any deadlines set in civil cases. No motions may be noticed for in-person presentment; the presiding judge will notify parties of the need, if any, for a hearing by electronic means or in-court proceeding. See attached Order. Signed by the Honorable Rebecca R. Pallmeyer on 7/10/2020. Mailed notice. (clerk1, Docket) (Entered: 07/10/2020)
07/07/2020 60 MINUTE entry before the Honorable Harry D. Leinenweber: After reviewing the parties’ joint status report 59 , the Court sets the following pretrial deadlines: 1) The Government shall disclose experts(s) 120 days before trial; 2) The Defendants shall disclose expert(s) 90 days before trial; 3) the Government shall provide its Santiago proffer, disclosure of any 404(b) material, Giglio material, and any remaining 18 U.S.C. § 3500 material 90 days before trial; 4) the Government shall disclose rebuttal expert(s), if any are retained, 60 days before trial; 5) the parties shall file motions in limine 60 days before trial; 6) the parties shall file responses to motions in limine 45 days before trial; 7) the parties shall file replies in support of motions in limine 35 days before trial; 8) the parties shall submit to the Court agreed upon jury instructions and objections, proposed exhibit binders, exhibit lists and objections, agreed stipulations, statement of the case, and proposed voir dire questions and objections 14 days before trial; & 9) the pretrial hearing will be set 7 days before trial. Status hearing set for 7/15/20 is re-set to 9/1/20 at 9:45 a.m. for all defendants. Dial in information will be provided to counsel as the status hearing will proceed telephonically. In the interest of justice, time is excluded to 9/1/20 pursuant to 18 U.S.C. 3161(h)(7)(A)(B) Mailed notice (maf) (Entered: 07/07/2020)
06/22/2020 59 STATUS REPORT by Edward Lee Filer as to Edward Lee Filer, Robert Joseph Gereg, Paul Michael Kelly (Litoff, Eli) (Entered: 06/22/2020)
05/29/2020 58 ORDER as to Edward Lee Filer, Robert Joseph Gereg, Paul Michael Kelly Signed by the Honorable Harry D. Leinenweber on 5/29/2020. Mailed notice. (docket8, ) (Entered: 06/01/2020)
05/27/2020 57 MINUTE entry before the Honorable Harry D. Leinenweber: Pursuant to the Court’s Fourth Amended General Order 20-0012 IN RE: CORONAVIRUS COVID-19 PUBLIC EMERGENCY, the status hearing set for 5/28/20 is re-set to 7/15/20 at 9:15 a.m. for all defendants. In the interest of justice, time is excluded to 7/15/20 pursuant to 18 U.S.C. 3161(h)(7)(A)(B) Mailed notice (maf) (Entered: 05/27/2020)
05/26/2020 56 ORDER as to Edward Lee Filer, Robert Joseph Gereg, Paul Michael Kelly ORDER Fourth Amended General Order 20-0012 IN RE: CORONAVIRUS COVID-19 PUBLIC EMERGENCY Signed by the Chief Judge Rebecca R. Pallmeyer on May 26, 2020. This Order does not extend or modify any deadlines set in civil cases. For non-emergency motions, no motion may be noticed for presentment on a date earlier than July 15, 2020. See attached Order. Signed by the Honorable Rebecca R. Pallmeyer on 5/26/2020. Mailed notice. (docket13, ) (Entered: 05/26/2020)
04/24/2020 55 ORDER as to Edward Lee Filer, Robert Joseph Gereg, Paul Michael Kelly Third Amended General Order 20-0012 IN RE: CORONAVIRUS COVID-19 PUBLIC EMERGENCY Signed by the Chief Judge Rebecca R. Pallmeyer on April 24, 2020. All open cases are impacted by this Third Amended General Order. Parties are must carefully review all obligations under this Order, including the requirement listed in paragraph number 5 to file a joint written status report in most civil cases. See attached Order. Signed by the Honorable Rebecca R. Pallmeyer on 4/24/2020. Mailed notice. (docket13, ) (Entered: 04/27/2020)
04/06/2020 54 MINUTE entry before the Honorable Harry D. Leinenweber: Status hearing set for 4/23/20 is re-set to 5/28/20 at 9:00 a.m. for all defendants. In the interest of justice, time is excluded to 5/28/20 pursuant to 18 U.S.C. 3161(h)(7)(A)(B) Mailed notice (maf) (Entered: 04/06/2020)
03/30/2020 53 ORDER as to Edward Lee Filer, Robert Joseph Gereg, Paul Michael Kelly Seconded Amended General Order 20-0012 IN RE: CORONAVIRUS COVID-19 PUBLIC EMERGENCY Signed by the Chief Judge Rebecca R. Pallmeyer on March 30, 2020. All open cases are impacted by this Second Amended General Order. Amended General Order 20-0012, entered on March 17, 2020, and General Order 20-0014, entered on March 20, 2020, are vacated and superseded by this Second Amended General. See attached Order for guidance.Signed by the Honorable Rebecca R. Pallmeyer on 3/30/2020. Mailed notice. (docket16, ) (Entered: 03/31/2020)
03/17/2020 52 ORDER as to Edward Lee Filer, Robert Joseph Gereg, Paul Michael Kelly On March 17, 2020, Amended General Order 20-0012 was further revised for all criminal matters. Paragraph 3(i) of the Amended Order, related to criminal matters, is hereby replaced with the following language: All other criminal hearings of any kind scheduled from March 17, 2020 until April 3, 2020 are stricken from the calendar, to be re-set by the presiding judge for a date on or after April 6, 2020. Also, any other deadlines, including motions, briefing, and discovery deadlines, whether set by the court or by the Rules of Criminal Procedure or Local Rules, are hereby extended by 21 days from the current deadline set. This 21-day extension is subject to modification by the presiding judge assigned to the case. See attached order. Revisions appear in red text.Signed by the Honorable Rebecca R. Pallmeyer on 3/17/2020. Mailed notice. (tg, ) (Entered: 03/18/2020)
03/16/2020 51 ORDER as to Edward Lee Filer, Robert Joseph Gereg, Paul Michael Kelly Amended General Order 20-0012 IN RE: CORONAVIRUS COVID-19 PUBLIC EMERGENCY Signed by the Chief Judge Rebecca R. Pallmeyer on March 16, 2020. All open cases are impacted by this Amended General Order. See attached Order for guidance.Signed by the Honorable Rebecca R. Pallmeyer on 3/16/2020. Mailed notice. (td, ) (Entered: 03/17/2020)
02/26/2020 50 MINUTE entry before the Honorable Harry D. Leinenweber: Status hearing and arraignment proceedings held as to defendants Filer and Kelly only. Defendants Filer and Kelly waive formal reading and enter a plea of not guilty to the superseding indictment. Status hearing held as to defendant Gereg. Defendant Gereg will be arraigned at the 4/23/20 status hearing. Status hearing set for 4/23/20 at 9:00 a.m. for all defendants. In the interest of justice, time is excluded through and including 4/23/20 pursuant to 18 U.S.C. § 3161(h)(7)(A)(B). Mailed notice(maf) (Entered: 02/26/2020)

United States District Court
Northern District of Illinois – CM/ECF LIVE, Ver 6.3.3 (Chicago)
CRIMINAL DOCKET FOR CASE #: 1:19-cr-00565-1

Case title: USA v. Filer et al
Date Filed: 07/11/2019
Assigned to: Honorable Harry D. Leinenweber

Defendant (1)
Edward Lee Filer represented by Ronald S. Safer
Riley Safer Holmes & Cancila LLP
70 West Madison St
Suite 2900
Chicago, IL 60602
(312) 471-8736
Email: rsafer@rshc-law.com
LEAD ATTORNEY
ATTORNEY TO BE NOTICED

Eli Joseph Litoff
Riley Safer Holmes & Cancila LLP
70 W. Madison
Suite 2900
Chicago, IL 60602
312-471-8780
Email: elitoff@rshc-law.com
ATTORNEY TO BE NOTICED

Valarie Hays
Riley Safer Holmes & Cancila LLP
70 W Madison Street
Suite 2900
Chicago, IL 60602
312-471-8700
Email: vhays@rshc-law.com
ATTORNEY TO BE NOTICED

Pending Counts
Disposition
FRAUD BY WIRE, RADIO, OR TELEVISION
(1-2)
FRAUD BY WIRE, RADIO, OR TELEVISION
(1s-2s)
FRAUD BY WIRE, RADIO, OR TELEVISION
(1ss-2ss)
BANKRUPTCY FRAUD
(3-4)
BANKRUPTCY FRAUD
(3s-4s)
BANKRUPTCY FRAUD
(3ss-4ss)
CONCEAL ASSETS, FALSE OATH AND CLAIMS BRIBERY
(5)
CONCEAL ASSETS, FALSE OATH AND CLAIMS BRIBERY
(5s)
CONCEAL ASSETS, FALSE OATH AND CLAIMS BRIBERY
(5ss)
BANKRUPTCY FRAUD
(6)
BANKRUPTCY FRAUD
(6s)
BANKRUPTCY FRAUD
(6ss)
CONCEAL ASSETS, FALSE OATH AND CLAIMS BRIBERY
(7-8)
CONCEAL ASSETS, FALSE OATH AND CLAIMS BRIBERY
(7s-8s)
CONCEAL ASSETS, FALSE OATH AND CLAIMS BRIBERY
(7ss-8ss)
BANKRUPTCY FRAUD
(9-10)
FRAUD BY WIRE, RADIO, OR TELEVISION
(9s-10s)
FRAUD BY WIRE, RADIO, OR TELEVISION
(9ss-10ss)
BANKRUPTCY FRAUD
(11s)
BANKRUPTCY FRAUD
(11ss)
FRAUD BY WIRE, RADIO, OR TELEVISION
(13s)
FRAUD BY WIRE, RADIO, OR TELEVISION
(13ss)
BANKRUPTCY FRAUD
(14s)
BANKRUPTCY FRAUD
(14ss)
FALSE DECLARATIONS BEFORE GRAND JURY/COURT
(15s)
FALSE DECLARATIONS BEFORE GRAND JURY/COURT
(15ss)

Highest Offense Level (Opening)
Felony

Terminated Counts
Disposition
None

Highest Offense Level (Terminated)
None

Complaints
Disposition
None

Plaintiff
USA represented by Brian Patrick Netols
United States Attorney’s Office (NDIL – Chicago)
219 South Dearborn Street
Chicago, IL 60604
(312) 353-5300
Email: Brian.Netols@usdoj.gov
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Designation: Assistant US Attorney

AUSA – Chicago
United States Attorney’s Office (NDIL – Chicago)
219 South Dearborn Street
Chicago, IL 60604
Email: USAILN.ECFAUSA@usdoj.gov
ATTORNEY TO BE NOTICED
Designation: Assistant US Attorney

Pretrial Services
.
(312) 435-5793
Email: ilnptdb_Court_Action_Notice@ilnpt.uscourts.gov
ATTORNEY TO BE NOTICED
Designation: Pretrial Services

Jeffrey S. Snell
United States Attorney’s Office (NDIL)
219 South Dearborn Street
Room 500
Chicago, IL 60604
(312) 469-6308
Email: jeffrey.snell2@usdoj.gov
ATTORNEY TO BE NOTICED

Will Chicago Courts Protect the Gangsta Lawyer? The Attorney Immunity Defense will Surely be Presented…

A former partner with Freeborn & Peters in Chicago has been charged in an alleged scheme to protect a client’s assets by creating a sham secured creditor with a senior lien on assets sought by other creditors.

The former partner, Edward Lee Filer, was charged in a July 11 federal indictment with two counts of wire fraud and eight counts of bankruptcy fraud, according to a press release by the U.S. Attorney’s Office for the Western District of Wisconsin. Crain’s Chicago Business covered the indictment.

Freeborn & Peters’ extensive cooperation was essential to the investigation, according to a statement in the press release by U.S. Attorney Scott Blader. Filer is currently of counsel to the Roetzel law firm.

Also charged with wire and bankruptcy fraud were Paul Michael Kelly, Filer’s client and neighbor in Clarendon Hills, Illinois, and consultant Robert Joseph Gereg of Osprey, Florida.

Kelly owned the Barsanti Woodwork Corp. The three men are accused of engaging in fraudulent transactions to falsely represent to Barsanti Woodwork creditors and later to a bankruptcy trustee that the company’s assets had been taken by a secured creditor.

Gereg was held out as the owner of BWC Capital, the sham secured creditor, though he secretly assigned his interest in BWC to a trust controlled by Kelly, prosecutors said. BWC allegedly used Barsanti Woodwork funds to purchase Barsanti’s secured debt from Harris Bank at a discount.

Filer’s lawyer, Ron Safer, told Crain’s Chicago Business that Filer acted “as a vigorous advocate for a family friend and client” and had no financial interest in the case. “We believe this is an unprecedented and unwise prosecution,” he told the publication in an email. “Ed did nothing wrong, and we look forward to proving his innocence.”

Freeborn & Peters partner Michael Kelly told Crain’s Chicago Business that the law firm “never would have condoned or tolerated the conduct that is alleged, had we known about it.”

ACCUSED ATTORNEY ‘OF COUNSEL’: FILER

Mr. Filer focuses his practice on construction, real estate, and banking law and has over two decades of experience in construction law, commercial real estate, commercial banking, mergers and acquisitions, and the general representation of privately held corporations.

Mr. Filer represents material suppliers, subcontractors, contractors, construction managers, design builders, architects, owners, developers, landlords, tenants, sureties, and financial institutions in every aspect of their business. He recognizes that each of his clients has unique needs, and he uses his exceptional problem solving approach to ensure that his clients are able to achieve their goals whether that be in the board room or the courtroom.

Mr. Filer has been recognized as an Illinois Super Lawyer, from 2012-2019, in Construction Litigation and has also been recognized as an Illinois Leading Lawyer® since 2010. He is licensed to practice law in Illinois and Wisconsin.

Roetzel & Andress
30 N. LaSalle Street
Suite 2800
Chicago, IL 60602
P 312.582.1627 | F 312.580.1201

INVESTMENT & MORTGAGE BANKING CONSULTANT : GEREG

Capital Resource Associates is a Florida Fictitious Name filed on July 23, 2012. The company’s filing status is listed as Active and its File Number is G12000073287. The company’s principal address is 678 Clear Creek Drive, Osprey, FL 34229.

The company has 1 principal on record. The principal is Robert J Gereg from Osprey FL.

Force 5 Holdings, Inc. is a Florida Domestic Profit Corporation filed on November 13, 2007. The company’s filing status is listed as Inactive and its File Number is P07000123382.

The Registered Agent on file for this company is Gereg Robert J and is located at 6506 Spyglass Lane, Bradenton, FL 34202. The company’s principal address is 6506 Spyglass Lane, Bradenton, FL 34202 and its mailing address is 6506 Spyglass Lane, Bradenton, FL 34202.

The company has 1 principal on record. The principal is Robert J Gereg from Bradenton FL.

WOODWORKER & BUSINESS OWNER IN BANKRUPTCY: KELLY

Paul Kelly, Executive VP (2006)

Paul M. Kelly joined Barsanti management on April 17, 2006, as executive vice president and minority stockholder. He comes to us with extensive management and sales experience.

Paul will provide you with the high level of service and fine results the construction industry has come to expect from Barsanti Woodwork Corporation.

Paul holds an MBA from Loras College in Dubuque, Iowa. He and his wife, Julie, have three sons.

Chicago Lawyer David Pasulka. Finally, The Bar Revokes His Law License But Only Due to Pressure

LIT’s circlin’ back to Cook County in Illinois and it’s startin’ to feel a whole lot like Wood County or Williamson County in Texas.

It’s Still Cookin’ in the County Hot Potato Case. A Letter is Issued to the Chief Judge Smashing the Sanctions Order

Magistrate Judge Harjani did not take into account the Hot Potato Doctrine which does not protect the Goodwin Procter lawyers violations.

Judge Bucklo’s Avoiding The Hot Potato Ethical Questions in this Sanctions Motion but Sends the Messenger Magistrate to Tell it’s Mashed Up Tale

The Hot Potato Rule is a serious matter and Goodwin Law and their attorneys Tom Hefferon, Matt Sheldon et al should have been sanctioned.

Chicago Cul-De-Sac; Lawyer is Accused of Creating Sham Secured Creditor to Shield Client Assets in Bankruptcy Court
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