The Bankrupt Corporate Law Firm of Paul W. Cogdell & Smith is suing an unnamed corporate investor and his firm, claiming that the latter is responsible for a series of financial and tax schemes.
In a lawsuit filed on Feb. 17 in federal court in Los Angeles, the law firm says that the unnamed “private equity” firm, which was founded in 2013 by the former CEO of Goldman Sachs, “uses its control over the bankruptcy and tax-avoidance schemes of the private equity firm to enrich itself.”
The law firm also claims that the private-equity firm, headed by Cogdy, has engaged in the avoidance of federal and state taxes on its profits, and has avoided state and federal income taxes on “millions of dollars of assets in the United States.”
In addition, the firm claims that it is “the sole shareholder of a publicly traded entity” in which it is a “partner.”
The lawsuit is the latest in a string of legal actions the firm has taken against private-sector clients in the years since it began representing the bankrupt U.S. Savings and Loan.
COGDell & Smith was founded by Paul Cogdanis in 2011.
CODS LLP, which Coggan’s law firm has represented since then, declined to comment.
The law firms filed the lawsuit, which seeks to recover damages from the unnamed investor.
The suit says that Cogdaels “continues to seek to recover substantial sums of money, in addition to other relief, as well as punitive damages and attorneys fees” related to “any and all claims, claims and defenses, including but not limited to: (i) any violation of the Bankrupt Code of Federal Regulations, (ii) the Bankrupcy Code of Business Conduct and (iii) the Tax Act of 2012.”
The bank’s complaint alleges that COGds partner, James L. Crampton, is responsible “for all violations” of the bank’s policies and procedures.
COT is represented by attorney Jonathan H. Levy, who also filed a similar suit against Bankrupt General Partners last year.
C&S has also filed separate lawsuits in the past against a number of unnamed private-revenue-generating companies.
The law firm’s statement that the bank is “not aware” of any criminal activity linked to Cogs partner’s activities is an apparent reference to a complaint filed in February 2016 against Cogdonis partner, David W. Hargrove, and his law firm, PaineWebber, for allegedly failing to comply with a series “filing requirements” mandated by the bankruptcy code.
According to the complaint, Cogden’s partner “has not been able to pay any of his fees in full since the bankruptcy filing and has no ability to pay in full or to avoid or reduce his fees if he fails to pay.”
In the same suit, C&s partner was also charged with failing to make a “comprehensive financial plan” and was ordered to pay $3 million to the Bank of New York Mellon for not complying with the filing requirements.
COGDells lawsuit against the unnamed private equity client and his partners, as seen in a screen grab of the complaint filed Feb. 23, 2018.