The
founder of a body-armor maker convicted of insider-trading in 2010
will have to pay more than $200,000 in attorney’s fees in a dispute
with his former lawyer, a federal appeals court has ruled.
David H. Brooks, the former chief
executive of DHB Industries, allegedly stopped paying his former
lawyer, Richard Ware Levitt, before his eight-month trial concluded two
years ago and hired new lawyers to assist in his post-conviction
motions.
After Brooks hired new layers, Levitt
moved to withdraw as counsel and sought a judgment of $224,956.16 to
cover the unpaid legal fees. Brooks opposed Levitt’s motion but didn’t
contest the amount owed.
A federal judge in Central Islip,
N.Y., ruled in Levitt’s favor in March 2011. On Tuesday, the U.S.
Second Circuit Court of Appeals upheld the district court’s decision.
“We’re reviewing the decision now and
evaluating whether or not there’s a basis to seek further review,” said
Andrew J. Goodman, a lawyer for Brooks.
Brooks, who left the company in
2006, was convicted in September 2010 of insider trading and other
charges in an alleged $190 million scheme to overstate the company’s
financial performance and to misappropriate millions of dolalrs in
corporate funds.
He allegedly used company money to pay
the expenses for his horse-training business and to live a lavish
lifestyle, including overseas vacations for his family and $40,000 on
leather-bound invitations for his son’s Bar Mitzvah, prosecutors said.
Before his trial was over, Brooks, 57
years old, sought to release funds that were subject to forfeiture,
saying he had depleted the funds available to pay for his defense. At
the time, he said had outstanding bills of about $1.5 million and that
he expected signficant ongoing costs related to post-trial proceedings.
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