Texas clients sue New York law firm for professional negligence

By Michelle Massey, East Texas Bureau | Aug 5, 2010

TYLER-A New York law firm is accused of charging $240,000 in fees for services it did not provide.

Kelly M. Crawford, receiver for Paul D. Poetter, 4309 Inc., 4309 Acquisition Trust, AMS-TEC Acquisition Trust, AMS-TEC Commodities Inc., AMS-TEC Energy Corp., Greener Cleaner Farms Inc. and Robocargo Corp. filed suit against Gregg E. Jaclin, Anslow + Jaclin and Jared McHatton on July 28 in the Tyler Division of the Eastern District of Texas.

As part of a lawsuit brought by the U.S. Securities and Exchange Commission, Crawford was appointed receiver to take exclusive control of approximately $5.2 million which was raised illegally from 2,300 investors.

The Jaclin defendants provided legal advice and services and created the structure for which the illegal solicitation was committed. According to the complaint, the solicitations raised the millions from unwitting investors in violation of securities laws.

Defendant McHatton agreed to provide general legal representation as "corporate counsel" at an hourly rate of $250 with a detailed bill, the suit states.

Instead of providing a detailed bill, McHatton allegedly charged $10,000 per month for two years.

The lawsuit alleges McHatton knew his fees were being paid by investor funds and he is accused of silently allowing false statements to be made to investors.

The defendants are accused of negligent misrepresentation, professional negligence, fraudulent transfers and unjust enrichment.

Crawford is seeking the recovery of the monies paid to the defendants, plus interest, attorney's fees, expenses and court costs.

The petitioner is represented by Dallas attorneys Charlene C. Koonce and Stephen J. Womack of Scheef & Stone.

U.S. District Judge Michael H. Schneider is assigned to the case.

Self-described, "Anslow + Jaclin advise and counsel diverse clients worldwide on unique and sophisticated corporate and securities transactions, reverse mergers, self-filings, PIPEs, corporate finance and mergers and acquisitions." The firm maintains offices in Manhattan and in New Jersey.

Case No. 6:10cv0371

More News

The Record Network