Filing 6

Report and Recommendation of the Bankruptcy Court (redacted). Signed by Chief United States Bankruptcy Judge Susan D. Barrett on 8/22/2018. (pts)

C se:16-00101-SDB Doc#:17 *SEALED* Flled:08/22/17 Entered:08/24/1/r'-L§e [f 3
Page:1 of 62

^1IUUG22

_

IN THE UNITED STATES BANKRUPTC^.^IQURT..^

^'59

FOR THE

SOUTHERN DISTRICT OF GEORGIA

Augusta Division
IN RE:

Miscellaneous

Proceeding No. 16-00101
TODD M. BOUDREAUX
UNDER SEAL

REPORT AND RECOMMENDATION

Before

the

Court

is

the

sealed

attorney

disciplinary

proceeding involving Mr. Todd M. Boudreaux, Esq. ("Boudreaux ")/

Georgia

Bar

Southern

No.

070023.

The

District of Georgia

proceeding

was

Local Rule 83.5.

held
The

pursuant
matter

commenced pursuant to an order for Boudreaux to appear and show

S.D. Ga. L.R. 83.S(f) and (g) states in pertinent part

(f) Any disciplinary proceedings under this Rule shall be
closed except that the Court may, in its discretion, open
to the public any such proceeding when justice so requires
or v;hen the subject of any disciplinary action so
requests.

(g) Where in a matter pending before an Article I Judge it
that any attorney appearing in a
case or
proceeding or representing a party in interest in such
case or proceeding, has violated any of the [Georgia Rules
appears

of Professional Conduct or ABA Model Rules of Professional

Conduct] , the Article I Judge may initiate a proceeding .
. , may terminate the proceeding at any stage when the
question raised is unsupported or unsubstantiated , and if
the proceeding is not terminated , shall at the conclusion

of the proceeding submit to the Chief Judge of this Court,
proposed findings of fact and, where appropriate, a
recommendation for the discipli.ne of the offending member.

0 2.4

(Rev 8/82)

to
was

se:16-00101-SDB Doc#:17 *SEALED* Filed:08/22/17 Entered:08/24/1716:47:43

Page:2 of 52

cause why this Court should not enter a Report and Recommendation to
the District Court of the Southern District of Georgia recommending

his suspension, disbarment, the imposition of sanctions and other

disciplinary actions in connection with his conduct before this
Court. Dckt. No. 1. The show cause order was issued after concerns
arose before this Court and after the United States Trustee ("UST")

filed a motion for sanctions detailing

very serious allegations

involving Boudreaux's conduct in the case of In re Mohr. Chapter 7
Case No. 13-11606 (Bankr. S.D. Ga. August 30, 2013). Dckt. No. 13-

11.

Thereafter, a supplemental show cause order was issued by this

Court to include allegations that Boudreaux improperly affixed the

signatures of several purported petitioning creditors in an effort

to place a com any involuntarily

into bankruptcy.

Dckt. No. 6.

Boudreaux retained counsel and filed responses stipulating to many

of the allegations, but stating there are mitigating circumstances
for the Court to consider.

Dckt. Nos. 2, 5, 7, 9-UST-l.

A hearing

was held April 14, 2017.

In summary, the allegations fall into the following five
categories:

1. Improperly receiving and holding funds belonging to the_
In re Mohr chapter 7 bankruptcy estate.
In the In re Mohr case, Boudreaux knew by late July 2016 there was

an agreement to sell an apartment complex and he knew his

,A072A

(Rev. 8/82)

client,

se:16-00101-SDB Doc#:17 *SEALED* Filed;08/22/17 Entered:08/24/1716:47:43
Page:3 of 52

}

the debtor,

stood to receive a significant

distribution.

funds belonged to the client's bankruptcy estate, not
client.
2016.

and

Boudreaux

received the funds on Tuesday,

These

Boudreaux's

September 20,

Prior to the sale, he did not inform the trustee of the sale,

he did not direct

estate.

Ultimately,

the funds

be delivered

to the

he did remit these funds to the

bankruptcy

bankruptcy

estate, but he did not promptly deliver the funds, and he lied and
lacked candor about the transaction.

2.

Lying

about

his

receipt

of

these

funds

and

the

activities related to these transactions.

Boudreaux lied about his receipt of these funds and the activities
related to the transaction. On Tuesday, September 27, 2016, after
Boudreaux's receipt of the funds, the Court, without knowledge of
the sale of the apartment complex, held a hearing on the trustee's
motion

to

sell

the

debtor's

interest

in

company that had owned the apartment complex.

the

limited

liability

Neither Boudreaux nor

his client appeared at the hearing, or disclosed the fact that the
apartment complex had been sold on September 19th and Boudreaux held

debtor's distribution from the proceeds. At the hearing, when it
became apparent that the sale had occurred and a substantial sum of
money had been disbursed, the Court denied the motion to sell and

subsequently held a turnover hearing on October 6, 2016 in an effort
to locate and obtain the funds.

,A072A
(Rov. 8/82)

At this turnover hearing, Boudreaux

se:16-00101-SDB Doc#:17 *SEALED* Filed:08/22/17 Entered:08/24/1716:47:43

Page:4 of 52

lied about the date he received the funds and his knowledge of the

sale of the apartment complex and the transactions related thereto.
3. Without authority, affixing the electronic signatures
of five purported petitioning creditors on an involuntary
bankruptcy petition.
Without

proper

authority,

Boudreaux

affixed

the

electronic

signatures of five purported petitioning creditors on an involuntary

bankruptcy

petition.

Bankruptcy

Code

bankruptcy.

There are few

than

to

stronger

involuntarily

See generally

provisions of the

force

11 U.S.C. §303.

a

company

into

As a safeguard,

the

Bankruptcy Code sets forth numerosity and claim status criteria that
must

be met for petitioning

entity into bankruptcy.

See

unauthorized

it

signatures,

creditors to involuntarily

11 U.S.C. §303{b).
is

highly

unlikely

place an

Without these
the

remaining

petitioning creditors met the statutory requirements to pursue the
involuntary.

Boudreaux also did not promptly acknowledge or correct

these defects as he continued to pursue the involuntary petition.
4. Making false and misleading
matters in Court and pleadings.
Recently,
statements

Boudreaux
of

has

material

made

matters

numerous
in

Court

statements

false
and

and
in

of material

misleading

pleadings.

On

numerous occasions, he has failed to fully cite statutes, relevant
authority, and failed to fulfill his duty of candor. He also has

filed bankruptcy schedules without proper authority from his client.

,A072A
(Rev. 8/82)

se:16-00101-SDB Doc#:17 *SEALED* Filed:08/22/17 Entered:08/24/1716:47:43
Page:5 of 52

He failed to fully cite pertinent authority in the In re

Mohr case/ leaving out the pertinent language of "in a trust" in

dealing with the 11 U.S.C. §541{c)(2). Furthermore, as stipulated,
in the In re Mohr case, Boudreaux filed numerous schedules on behalf

of

his

client

client's

under

required

penalty

signature

of

and

perjury
approval.

without
See

obtaining

e.g.

In

re

the

Mohr.

Chapter 7 Case No. 13-11606, Dckt. Nos. 402, 536 (the Declaration
purported electronically signed by the debtor declares under penalty
of perjury that debtor has read the schedules and they are true and
correct);

See

Fed.

R.

Banlcr.

P.

1008

("All

petitions,

lists,

schedules, statements and amendments thereto shall be verified or

contain an unsworn declaration as provided in 28 U.S.C. §1746."); 9

Collier on Bankruptcy§ 1002.02(8](16th ed. 2015)("With the advent
of electronic filing of bankruptcy petitions, among the facts that

the attorney is certifying by filing a petition that indicates the
debtor has signed it is that the debtor has, in fact, signed a paper
copy of the petition."); Bankr. S.D. Ga. ECF R. 7 ("Documents that
are electronically filed and require an original signature, other
than that of the filer, should be maintained in paper form by the
filer

for

appeals

at

or

least

the

five

(5)

expiration

of

years
time

after
for

the

filing

conclusion
a

timely

of

all

appeal,

whichever is later.")

In

the ^ re

McFarland.
5

'A()72A

(Rc\-. 8/82)

Chap.

7

Case

No.

11-10218,

se:16-00101-SDB Doc#:17 *SEALED* Filed:08/22/17 Entered:08/24/1716:47:43
Page:6 of 52

Boudreaux challenged the validity of electronic signatures on a
consent order without citing the full local rule which nullified his

argument.

At the hearing, the Court had to prompt him twice to read

further in the rule to include the relevant provisions which were

adverse to his argument.

Id. Dckt. No. 383, pp. 7-8.

He also has

stipulated to asserting baseless arguments, contradicted
record:

in

the

In

re

McFarland

case

dealing

with

by the

inaccurate

jurisdictional arguments he raised; in the ^ r^ Brooks, Chap. 7
Case

No. 13-10860 inaccurate arguments

attachments

of

guaranties

and

an

he

asserted dealing

entity's

qualification

with

to

do

business within the State of Georgia.

5. Conducting himself unprofessionally in his interactions
with clients, colleagues and the Court.

Boudreaux has conducted himself unprofessionally in his interactions
with clients,

colleagues and the Court.

referenced above is unprofessional.
conducted himself unprofessionally.
unnecessary

vitriolic

emails

and

Obviously,

In addition,

Boudreaux

He acknowledges
conducted

the conduct
has

he has sent

himself

boorishly

unprofessional in Court and with his colleagues.
Summary Recoromenda-bion.

Standing

disbarment.

alone,

(1^.8^)

one

of

these

offenses

merits

However, in certain circumstances, discipline short of

disbarment is appropriate.

A072A

each

For the reasons discussed in this Report

se:16-00101-SDB Doc#:17 ^SEALED* Filed:08/22/17 Entered:08/24/1716:47:43
Page:7 of 52

and Recommendation, after considering the undisputed seriousness of

these violations along with the specific facts and circumstances of
this case, this Court respectfully makes the following disciplinary
recommendations:

1. Boudreaux be suspended from the practice of law before
the District Court for the Southern District of Georgia
for a period of one (1) year;
2. At the end of this one (1) year period, Boudreaux be
.authorized
to petition
to the
District
Court for
readmission pursuant to the Court's applicable local
rules. In addition, his readmission petition shall be
accompanied by (i) confirmation from a board-certified
psychiatrist that Boudreaux is fit to return to the
practice of law; (ii) confirmation from aboard-certified
psychologist that Boudreaux is fit to return to the
practice of law; and (iii) a certification that Boudreaux
is duly licensed and in good standing with the State Bar
of Georgia;

3.
For the period of one (1) year after Boudreaux is
readmitted to practice law before the District Court for
the Southern District of Georgia, he shall submit monthly
reports from a board-certified psychiatrist and a boardcertified psychologist stating he remains mentally fit to
practice law;
4.

The final order of the District Court be referred to

the State Bar of Georgia for disciplinary action; and
5. Within 14 days of entry of the final order, Boudreaux
be required to inform the District Court whether he is
admitted to practice law in any other Court or State Bar,
identifying all such Courts and Bars in order for the
District Court to make proper disciplinary referrals.
STIPULATIONS OF FACT

Boudreaux stipulated to the following facts set forth in
the UST's Motion for Sanctions:
7

A072A

(n.v.8^)

se:16-00101-SDB

Doc#:17 *SEALED* Filed:08/22/17 Entered:08/24/17 16:47:43
Page:6 of 52

The Petition and Schedules

1. On August 20,2013, Christopher G. Mohr
filed a chapter 11 bankruptcy case in
District of Georgia, Case No. 13-11606-SDB.
represented in the bankruptcy case by Todd

C'Chris Mohr")
the
Southern
Chris Mohr was
M. Boudreaux.

2. Chris Mohr's bankruptcy case was converted to chapter
1 on August 25, 2014.

3. The original schedules listed a sixteen percent (16%)
ownership interest in Spring Creek Apartments, LLC
(hereinafter "Spring Creek"), which interest was valued in
the original bankruptcy schedules at $0.00.

4. Spring Creek's sole asset was an apartment complex in
Florida with approximately 252 units. The owners of Spring
Creek included Doug Johnson, Jr., John Rocker, Brian
Willis, Carson Palmer and Chris Mohr.

5. At the time Spring Creek was formed in 2008, Mr. Mohr
held a sixteen percent (16%) interest in the LLC, and his
interest subsequently increased and decreased between 16%
and 20% as investors invested in and left the LLC. These

changes are reflected in amended operating agreements. Mr.
Mohr's interest increased to twenty percent (20%) at some
point prior to 2013. All tax documents from 2013 forward
show Chris Mohr with an ownership interest of 20%.'
6. The tax returns reflecting a 20% ownership interest
were delivered to the U.S. Trustee's office prior to the
Initial Debtor Interview and the chapter 11 meeting of

^ The 2013 tax return (along with K-1) was filed on October
15, 2014. The 2014 K-1 was filed on September 16, 2015. The 2015
K-1 was filed on September 26, 2016. All documents show an ownership
interest of 20%. In addition, various emails between Mr. Mohr, Mr.

Boudreaux and the managing member of the LLC (Doug Johnson) show
that Mr. Boudreaux was aware that Mr. Mohr's ownership interest in
Spring Creek was twenty percent (20%).

[At the Show Cause hearing, the UST acknowledged Boudreaux was
justified to initially list this ownership percentage at 16%. Tr.
H'rg 4/14/2017, 169:1-25; 170:1-25.]
8

A072A

(Rev.8/82)

ase:16-00101-SDB Doc#:17 *SEALED* Filed:08/22/17 Entered:08/24/17 16:47:43

Page:9 of 52

creditors.

7. Tax returns reflecting the 20% ownership interest were
also provided to the chapter 7 trustee prior to the
conclusion of the meeting of creditors when the case
converted to chapter 7.
8. On October 28, 2014, after the case was converted to

chapter 7, Mr. Boudreaux filed amended Schedules Band C
on behalf of his client Chris Mohr, listing the same level
of ownership at 16%, and reporting the value to be $1.00.
Mr. Boudreaux did not obtain Chris Mohr's signature prior
to filing these amendments.

9. On January 23, 2015, Mr. Boudreaux filed another set of
amended Schedules Band Con behalf of his client, listing

the ownership interest at 16% with a value of $1.00
{amending for other items). Mr. Boudreaux did not obtain
Chris Mohr's signature prior to filing these second
amendments.

The Brian Willis Case in the Northern District of Georgia

10. On August 18, 2015, in the Northern District of
Georgia bankruptcy case of Brian Willis, chapter 7 trustee
Cathy Scarver filed Trustee's Motion for Authorization for
Private Sale of Certain Personal Property Free and Clear
of Liens and Other Interests, Including Bidding Procedures
{NOGA Case 11-51759, Okt. No. 169) ("NDGA Motion to
Sell").

11. Similar to Chris Mohr, debtor Brian Willis owned a

percentage

interest in

Spring

Creek.^ Trustee

Scarver

sought to sell the Willis interest to a company called
Partnership Liquidity Investors IV, LLC ("PLI") for
$450,000.
12. The distribution list attached to the NOGA Motion to

Sell shows that Chris

Mohr

received

a

copy of Trustee

^ There was a dispute as to whether Brian Willis owned twenty
percent (20%) or forty percent (40%) of Spring Creek Apartments,

LLC. This dispute is relevant to the extent that the sales price of
the Willis share was for a potential 40%, as opposed to 20%.

•-AO 72A

(Rov. 8/82)

ase:16-00101-SDB

Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/17 16:47:43

Page:10 of 52

Scarver's Motion to Sell.

13. On August 28, 2015, Chris Mohr sent an email to Todd
Boudreaux, copying other members of Spring Creek, stating:

Todd, I googled this group PLI and see where they
bought a bankruptcy property in '14. Do these
guys just go around the country looking into
cases and see what looks good? It seems a little
"Fishy" that the Trustee is "all-of-a-sudden"
reopening this case. If so, this can't be right.
Let me

know.

14. On August 28, 2015, Todd Boudreaux responded by email,
saying:

I

looked them

up last

night and

saw

the same

thing with a purchase in Sarasota, FL. They look
like an investment fund/hedge fund/bottom feeder
entity that looks for something they can try to
get for a fire sale price because there is
otherwise no market to buy or sell an asset of
that type or in that type of situation {no bank
would touch the financing for a buyer purchase a
minority interest in an LLC that operates an
apartment complex; that has to be an all cash
deal). I am going through the docket in Brian's
case to look for a few things that may give us
some ammo, and will give you a call shortly.
15. Later on August 28, 2015, Todd Boudreaux sent an email
to Chris Mohr and the other members of Spring Creek,
describing potential objections to the NDGA Motion to Sell
and noting that the owners all have 20% interests in the
LLC (including Chris Mohr).
16. On September 28, 2015, Spring Creek Apartments, LLC,
by and through attorney Ward Stone, filed an objection to
the

NDGA Motion to Sell.

17. On September 29, 2015, individual member John Rocker,
by and through attorney Ward Stone, filed an objection to
the NOGA Motion to Sell.

18. Chris Mohr and Todd Boudreaux actively monitored the
10

A072A

(Rev.8/82)

ase:16-00101-SDB Doc#:17 *SEALED*

Filed:08/22/17

Entered:08/24/17 16:47:43

Page:11 of 52

NOGA Motion to Sell and the objections filed thereto.
19. In September of 2015, there were various emails
between Ward Stone and Todd Boudreaux relating to the
referral
of
the
case,
LLC
issues,
attorney-client

privilege issues, and tactics for litigation in connection
with the NOGA Motion to Sell.

20. On October 27, 2015, the Bankruptcy Court for the

Northern District of Georgia (Judge Sacca) held a hearing
in

connection

with

the

NOGA

Motion

to

Sell

and

the

objections thereto. Shortly after the hearing, attorney
Ward Stone sent an email to the owners of Spring Creek,
including Chris Mohr, stating in relevant part:

The hearing today was a disaster. The Court, over
our strenuous objection, is going to allow an
auction to proceed. The potential buyer upped its
bid to $500,000 and it was suggested that the
right of first refusal will allow the LLC or any
Member to match that bid between now and November

18. The process will conclude with a live auction
in the Bankruptcy Court on November 18, to which
the Court invited the parties to "bring their
checkbooks."

21. On

docket

October 28, 2015, a runner was entered on the
in the NOGA Willis case stating "Court: Sales

Auction to be held 11/18/15 at 1:00 PM in Courtroom 1404."
22. Both Chris Mohr and Todd Boudreaux were aware that the

NOGA bankruptcy court ordered an auction of the Willis
interest in Spring Creek.
23. On November 18, 2015, there was an auction of the
Willis interest and the winning bid was $605,000. Both
Chris

Mohr

and

Todd

Boudreaux

became

aware

after

the

auction that it resulted in a winning bid of $605,000.
24. On

November 19, 2015, Mr. Boudreaux filed another
amended Schedule C to amend exemptions on assets unrelated

to the LLC, leaving Chris Mohr's interest in Spring Creek

11

<I1...V072A

(Rev.8/82)

ase:16-00101-SDB

Doc#:17 *SEALED* Filed:08/22/17 Entered:08/24/17 16:47:43
Page:12 of 52

at sixteen percent

(16%) with a value

of $1.00.'*

Mr.

Boudreaux did not obtain Chris Mohr's signature prior to
filing this amended Schedule C.
25. On November 22, 2015, Todd Boudreaux sent an email to
Chris Mohr that contained the following language:

After our last meeting to prepare for the
depositions, I reviewed more information about
your interest in the Spring Creek Apartments,
LLC. Because of the way we listed this asset and
exempted your interest in the LLC, we do not need
to worry about the same problems with your
interest that happened to Brian Willis' interest
in his Atlanta case. Unlike Brian's case, I was

able to fully exempt your interest in the LLC.
Therefore, Steve Wallace will not be able to come

after your interest in the LLC and that hedge
fund company cannot force a sale of your interest
in the LLC. This is significant, because it
eliminates the rush to get everything else
resolved, and we can let those issues play out a
little more slowly, which I think is to your

advantage. One way or another, we can forget
about losing your interest in the LLC.
26. On November 25, 2015, the Bankruptcy Court for the
Northern District of Georgia entered an Order Authorizing
the Sale of the Spring Creek interest and denying the
objections. The Order describes the auction, notes that
Spring Creek members made multiple bids, and sets forth
the final bid of $605,000 by PLI. In denying the
objections, Judge Sacca held that the Bankruptcy Court had
jurisdiction over debtor Willis' interest in Spring Creek
and he noted that section 9.2 of the Spring Creek
Operating Agreement contemplates the transfer --of an
interest by saying "a transferee shall merely be an
assignee of the transferor Member's right to receive its
share of distributions from the Company ...." The Court

" It appears that the purpose of the amendment, and the only
change from the prior Schedule C, was an attempt to exempt the cash
value of an insurance policy.

12

ni:UQ72A

(Rev.8/82)

ase:16-00101-SDB

Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/17 16:47:43

Page:13 of 52

held

that

Spring

economic interests

Creek

members

without

the

could

consent

transfer
of

other

their

members

and neither Florida law nor the Operating Agreement can
limit a bankruptcy trustee's right to sell the economic
interest to a third party.
27. Mr. Boudreaux was aware of Judge Sacca's order
authorizing the sale of the Willis interest in Spring
Creek to a third party.

28. Mr. Boudreaux never amended the bankruptcy schedules
to report the value of his client's 20% interest in Spring
Creek as more than $1.00.
The Sale of the Apartment Complex

29. On March 28/ 2016, Chris Mohr signed a document called
Unanimous Written Consent of the Members of Spring Creek
Apartments, LLC, which document authorized Spring Creek to
sell the entire apartment complex to RE Acquisition
Opportunity Fund, LLC for the amount of $26,250,000.00.
The Agreement for Sale was signed by the buyer and was
attached as Exhibit A to the Unanimous Written Consent.

30. On March 29, 2016, the managing member of Spring Creek
(Doug Johnson) signed the Agreement for Sale, thereby
creating a fully executed sales agreement between a
willing buyer and willing seller.
31. Chris Mohr notified Todd Boudreaux about the Agreement

for Sale of the apartment complex within a few weeks of
the signed Agreement.

32. On July 19, 2016, the members of Spring Creek,
including Chris Mohr, signed an updated Unanimous Written
Consent document. The updated version indicates that the
closing shall occur no later than August 31, 2016, and it
contains the following language:

RESOLVED, that, upon the completion of the
closing of the transactions contemplated by the
Agreement For Sale and Purchase of Property with
RE Acquisition Opportunity Fund, LLC, the Company
shall dissolve ...

13

A072A

(Rev.8/82)

ase:16-00101-SDB

Doc#;17 *SEALED* Filed:08/22/17 Entered:08/24/17 16:47:43
Page:14 of 52

RESOLVED, that the pro forma accounting by
Douglas Johnson, Jr., as Managing Member of the
Company, attached as Exhibit B (the "Pro Forma"),
is hereby acknowledged, agreed and approved as an
accurate depiction of the debts, obligations,
assets and distribution obligations of the
Company and constitutes an acceptable financial
result and plan and process of winding up and
terminating the Company.
33.

The

Pro

Forma

attached

to

the

Unanimous

Consent

provided estimated distributions of $551,862 to each LLC
member holding 20%, including Chris Mohr.
34. Chris Mohr informed Todd Boudreaux about the updated
Unanimous

Consent

and

the

fact

that

he

(Mohr) stood

to

receive a significant distribution at closing.
The Motion to Sell in the SoTi-fchern District: of Georgia

35. On August 18, 2016, the chapter 7 trustee in the Chris
Mohr case

filed an Amended

Motion

for

Authorization for

Private Sale of Certain Personal Property Free and Clear
of
Liens
and
Other
Interests,
Including
Bidding
Procedures, seeking to sell Chris Mohr's 20% interest to
PLI for $275,000 ("SOGA Motion to Sell") (Dkt. No. 565).

36. On September 9, 2016, Mr. Boudreaux filed an Objection
to Motion to Sell and Notice of Intent to Exercise Rights
of First Refusal (hereinafter the "Objection") (Dkt. No.
572), purporting to represent not only Chris Mohr, but
also managing member Doug Johnson and Spring Creek itself.

37. At the time he filed the Objection, Mr. Boudreaux.
knew

about

the

executed

contract

for

the

sale

of

the

apartment complex and he knew that his client Chris Mohr
stood to receive a large distribution if the sale closed.
He knew that the estate of Chris Mohr would be entitled to

those funds, yet he filed an objection purporting to
exercise Doug Johnson's right of first refusal to buy the
same interest from the estate for an amount less than the

amount Chris Mohr stood to receive at closing. In doing
so, Mr. Boudreaux knowingly advanced a position that was
materially adverse to estate while simultaneously hiding
the sale from the trustee and the Bankruptcy Court.
14

'A072A

(Rev.8/82)

ase:16-00101-SDB

Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/17 16:47:43

Page:15 of 52

38.

The

SOGA

Motion

to

Sell

cited

the

Brian

Willis

bankruptcy case in the NOGA and it stated that the Willis
interest in Spring Creek had been sold at auction for
$605,000. However, the Objection filed by Mr. Boudreaux
did not mention the Willis case in the Northern District

of Georgia or the Order Authorizing Sale by Judge Sacca.
It cited the provisions in the Operating Agreement that
purport to prohibit the transfer of any interest without
the written consent of all members, but it did not mention

the provision that Judge Sacca considered to be important,
namely section 9.2 saying "a transferee shall merely be an
assignee of the transferor Member's right to receive its
share
of
distributions
from
the
Company "
The
Objection implied that there was no such provision by
stating "no provision of the Operating Agreement provides
for the permanent bifurcation of a member's ownership
(voting) and 'economic' interest in the limited liability
company for purposes of sale, transfer or otherwise." See
Objection (Dkt. No, 572) at page 3.
39. The Objection did not disclose that the apartment
complex was about to be sold or that Chris Mohr was about
to receive a significant distribution.

40. On September 12, 2016, in connection with mediation
scheduled for the following day, Mr. Boudreaux sent an

email to chapter 7 trustee Steve Wallace, stating:
In
reference to the
mediation
tomorrow, my
clients don't have much incentive to offer much

more than a nuisance value settlement given the
following facts:
1. 2 of the

3 transfers occurred

more than 2

years pre-petition;
2.

The

will

Debtor's

be

financial

supported

by

statements

the

testimony) as well as Jack Long

(that

accountant's
Sr's letter

(that was written and delivered close in time

to the transfers) [sic] provide ample evidence
of both solvency and non-fraudulent intent,
and

there is no evidence

evidence;

15

,A072A

(Rev.»82)

at all to rebut that

ase:16-00101-SDB

Doc#:17 *SEALED*

Filed:08/22/17

Entered:08/24/1716:47:43

Page:16 of 52

3. Settlement of the limited issues that are
to be addressed in the mediation will not

address the current, largest remaining

issue

- - the effort to sell an "economic interest"

in an LLC that runs contrary to the Operating
Agreement, Florida LLC law, and Georgia LLC
law.

From my conversations with the Debtor and his
wife, they want everything wrapped up with this
case so they can get on with their lives. I
would therefore propose that we differ [sic] the
mediation

issues.

until

I

Overstreet

we

can

discussed
as

it

address

this

related

to

all

briefly
his

of

these

with

Jim

motion.

From

that conversation I understand the logistical
concerns of the Trustee, especially as it would
relate to the party with the current pending

offer. My thought is that if we differ [sic] the
mediation,

I

would

contact

the

prospective

buyer's attorney to explore a settlement whereby
the Debtor would pay a break-up fee to resolve
any interest the buyer
has
{rather than
objecting to his right to a break-up fee as an
insider and then fight over any potential sale),
then mediate all of the remaining issues with
the Trustee to resolve the pending adversary as

well as liquidate the estate's interest in the
LLC.

Although this proposal is more easily outlined
than accomplished, it is worth exploring to
eliminate unnecessary litigation and the "all or
nothing" result attendant to that litigation. I
would prefer to raise this issue today rather
than in front of Judge Dalis®for the first time
tomorrow

in

an effort to avoid

the irritation

that would be associated with his making a very
short turn-around trip.
I am in the office all afternoon if we need to

discuss this quickly so that we can contact the

®[Judge Dalis was serving as a mediator.]
16

,A072A

(1^.8^)

ase:16-00101-SDB

Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/17 18:47:43

Page:17 of 52

Court to determine whether or not we can save

Judge Dalis the drive to Augusta.
41.

Mr.

Boudreaux'

s

email

to

trustee

Wallace

did

not

disclose that the apartment complex was about to be sold
or that Chris Mohr was about to receive a significant
distribution. Rather, it offered a global settlement

whereby Chris Mohr would buy his own 20% interest from the
trustee plus a "breakup fee" to the prospective buyer PLI.
42. On September 14, 2016, at 9:48 AM, Chris Mohr sent a
text message to Todd Boudreaux, stating as follows:

Talked to Doug, everything is done and the fund
are being mailed Monday. Can you contact Jim
Overstreet and work something out with him? CMohr RTR.

43. By no later than September 14, 2016, Mr. Boudreaux
knew that the closing would occur the following Monday
(September 19) and he knew that his client would receive
significant funds.

44. On September 14, 2016, Ryan Isenberg (attorney for
PLI) sent an email to Todd Boudreaux, stating:

I represent Partnership Liquidity Investors IV,
LLC in connection with its proposed acquisition
of your client's economic interest in Spring
Creek Apartments, LLC. Should you have any
questions, concerns or communications for my
client, please forward them to my attention.
Knowledge of Imminent Closing and Possession of the $485.OOP
Check

45. On September 18, 2016, Doug Johnson communicated with
Chris Mohr to confirm that the closing on the apartment

complex would occur the next day (Monday September 19).
Chris Mohr instructed Doug Johnson to send his (Mohr's)
distribution check to Todd Boudreaux.

46. On September 18, 2016, Chris Mohr told Todd Boudreaux
that the closing would occur the next day and that he
(Boudreaux) could expect a check via overnight mail.
17

,A072A

(Rev. 8/82)

ase:16-00101-SDB

Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/1716:47:43

Page:18 of 52

47. On Monday, September 19, 2016, the closing of the sale
of the apartment complex occurred. The HUD closing
statement shows that the complex sold for $26,250,000 and
it shows Cash To Seller(s) in the amount of $1,981, 394.30.

48. On Monday, September 19, 2016, a check for $485,000
payable to Chris Mohr was sent via overnight mail from the
title company to the office of Todd Boudreaux.
49. On Tuesday, September 20, 2016, Mr. Boudreaux sent a
text message to Chris Mohr, which included the statement
"check for you arrived here via overnight mail".
50. On Tuesday, September 20, 2016, after receiving the
check, Todd Boudreaux telephoned the office of Ryan
Isenberg (attorney for PLI).

51. During the telephone call, Todd Boudreaux attempted to
negotiate a deal whereby his client Chris Mohr (and/or
other LLC members) would pay $275,000 plus a break-up fee
to PLI in exchange for an assignment of PLI*s interest in
the contract to purchase the 20% interest from the Chris
Mohr bankruptcy estate.

52. Mr. Boudreaux attempted to negotiate this deal while

knowing that the closing had already occurred and while in
possession of the $485,000 check which he knew to be
property of the bankruptcy estate.

53.
Mr.
Isenberg
contacted
his
client
about
Mr.
Boudreaux's offer, but his client did not respond until
later that week.

54. On Friday, September 23, 2016, at 2:59 PM,
Boudreaux sent an email to Mr. Isenberg, stating:
I am out of the office this afternoon,

Todd

but am

checking to see whether you have spoken to your
client follov/ing our last telephone conversation?

55.

On

Friday,

September

23,

2016,

at

3:18

PM,

Isenberg responded by saying:

Todd I just heard from my client this morning. I
apologize for not getting back to you sooner, but
18

,A072A

(Rev.8/82)

Mr.

ase:16-00101-SDB

Doc#:17 *SEALED* Filed:08/22/17 Entered:08/24/17 16:47:43

Page:19 of 52

I am trying to get an MSJ out the door before I
leave today. My client informed me that
apparently the closing went through as he had
received

a

distribution

for

the

undisputed

portion of his economic interest. I am not sure
where that leave [sic] us as I can't imagine the

bankruptcy

court

approving

a

sale

of

your

client's distribution for a discount.

56. On Monday, September 26, 2016, at 9:50 AM, Jim
Overstreet sent an email to Mr. Boudreaux, stating:

Todd, I

know

you wanted to try to work out

something global with this Spring Creek thing and
the other stuff you had with steve, but I
understand yall were successful on the mediation
as to the other matters. Where does that leave us
for tomorrow? I didn't know if the settlement of

those other claims made your objection go away,
or if it simply made Chris's desire to keep the
thing stronger - Have you talked to Jerome Fink?
I didn't know if since you settled your other
cases, you still wanted to work something out
with them or what - Thanks. JCO

57. On Monday, September 26, 2016, at 9:57 AM, Todd
Boudreaux sent an email to Mr. Isenberg, responding to Mr.
Isenberg's email from Friday, stating:
I tend to agree with you final conclusion. Have
you
talked
to
the
Trustee
about
the
motion/hearing scheduled for tomorrow? I will try
to find out what I can about the closing from my
end.

58. On Monday, September 26,

2016, at

10:07 AM, Todd

Boudreaux sent a responsive email to Mr. Overstreet,
stating:

I have been talking to his attorney, Ryan
Isenberg in Atlanta and sent as [sic] follow up
email to Ryan about 15 minutes ago. My client
remained interested in working this out with Fink
because it would provide to him the opportunity
to pay out the "redemption" price for their
19

A072A

(Rev.8/82)

ase:16.00101-SDB

Doc#:17 *SEALED*

Flled:08/22/17 Entered:08/24/17 16:47:43

Page:20 of 52

residence now instead of saving up the money over
the next 12 months. The same co-owners of Spring

Creek that were going to help him finance a
settlement on the LLC interest are willing to
kick in an extra $30,000 to Chris so that he can
get this case closed, then he could pay them back
over time instead of having to pay the trustee
later. I'll let you know as soon as I hear
anything else.
59. At the time he sent these emails, Mr. Boudreaux knew

that the closing had already occurred
possession of the $485,000 check.

and

he

had

60. On Tuesday, September 27, 2016, the morning of the
continued hearing on the SDGA Motion to Sell, Todd
Boudreaux filed a Withdrawal of Objection to Motion to
Sell.

The Withdrawal did not disclose the sale/closing of

the apartment complex or that he had already received a
check for $485,000 (received seven (7) days prior).

61. On September 27, 2016, this Court held a hearing on
the

SDGA

Motion

to

Sell.

Mr.

Overstreet

described

his

knowledge of the closing of the apartment complex and
urged the Court to deny the motion based on the fact that
the LLC no longer held any property.

62. On September 27, 2016, the SDGA trustee filed a Motion
for Turnover of the $485,000 funds and Motion to Expedite
Hearing (Dkt. Nos. 584 and 585).
Misrepresentations to the Court at the Hearing on October

_6.

zm
63.

On

October

6,

2016,

this

Court

held

an

emergency

hearing on the Motion for Turnover. In attendance were
Todd Boudreaux, Steve Wallace (chapter 7 trustee), Jim
Overstreet (counsel for chapter 7 trustee), Ryan Isenberg
(counsel

for

PLI),

and

Matthew

Mills

(Assistant

U.S.

Trustee).

64. When questioned about whether he knew of the closing
and when he received the check, Mr. Boudreaux gave

multiple false statements to the Court. See Transcript of
Hearing on October 6, 2016 on Expedited Motion for
20

,A072A

(Rcv.8®)

ase:16-00101-SDB Doc#:17 ^SEALED* Filed:08/22/17 Entered:08/24/17 16:47:43

Page:21 of 52

Turnover of Property filed by Chapter Trustee.

65. Mr. Boudreaux stated in open court that he did not
know about the closing and that he did not receive the
check until Monday, September 26, 2016, the day before the
hearing on the SOGA Motion to Sell.
66. Some of the misrepresentations were made after Mr.

Isenberg described the negotiation attempted by Mr.
Boudreaux following his receipt of the check on Tuesday,
September 20, 2016 (page 54 forward}.
67.

The

transcript

at

page

6

reflects

the

following

exchange:

MR. BOUDREAUX: [cont'd] ... I'm not sure what the
show

cause and sanctions

would

be because this

check has never been in my client's possession
ever at any time.

THE COURT: Has it been in your possession? The
show cause isn't just about him.
MR. BOUDREAUX: No. I understand.

THE COURT: Has it been in your possession?
MR. BOUDREAUX: And when we did determine — when

we had it, we let the trustee know that we had
it.

68. The transcript at pages 13-14 reflects the following
exchange:
THE

COURT:

You

think

that's

candor?

You

think

that -- when you know something's already been
sold and you've got an as-is/where-is contract,
to let that happen?
MR. BOUDREAUX: Your Honor, it's not

— at that

point, the motion is between the trustee and the
buyer and for them to work -- work that out.

At that point, I had not been able to contact my

client, talk to my client. I can't simply
21

,A072A

(Rev.8/82)

ase:16-00101-SDB

Doc#:17 ^SEALED* Filed:08/22/17 Entered:08/24/17 16:47:43

Page:22 of 52

disclose information at this point.
THE COURT: You can't disclose that you have a
$400,000 check that -that the trustee is trying
to sell for 200-plus thousand, or whatever that
number was, to another party? You think that's

protected by the attorney-client privilege and
prevailing case law? So that -

MR. BOUDREAUX: But my turnover of -- of --I
understand the debtor's obligation. I understand
that these funds had to be -- be put in. But
when we're talking about the limited amount of
time that came in and -- in the context of the

case, I owe — I owe it -

THE COURT: But you knew on the weekend. The
hearing was on Tuesday, and you didn't show up,
and you didn't tell MR. BOUDREAUX: No. Your Honor -

THE COURT: — you didn't say anything.

MR. BOUDREAUX: — actually, my — from the e-mail

exchange, it was that Monday that we determined
that

we

had

the

check.

It

had

been

over

the

weekend, but we had it on Monday. At that point

THE COURT: So Monday, you knew.

MR. BOUDREAUX: At that point, in e-mails with Mr.
Overstreet, we communicated. He knew that there
were checks that had been disbursed so there was

no -- there was nothing that I would add to the
conversation.

69. The transcript at page 16 reflects the following
statement by Mr. Boudreaux:
MR. BOUDREAUX: (cont'd] ... So given that context
that -- when I — I did first learn of the check

on that Monday. It apparently had been in my
office that weekend, but it was Monday before I
22

072A

(Rev.8/82)

ase:16-00101-SDB Doc#:17 ^SEALED* Filed:08/22/17 Entered:08/24/17 16:47:43
Page:23 of 52

knew that that check was in my office that was

payable to Mr. Mohr and that I was in possession
of it and that Mr. Mohr was not.

Given that timing, the only thing I was able to
do that I thought was in compliance with duty of
candor, duty of my client, given that timing and

given what I knew the other attorneys already
knew... this is not a surprise to anybody-- I

simply withdrew my objection to - to the sale.
70. The transcript at pages 39-40 reflects the following
exchange:

THE COURT; And no one shows up? [referring to Mr.
Boudreaux's withdrawal of his objection and

failure to appear at the hearing on SOGA Motion
to Sell]

MR. BOUDREAUX: But they were here to do that.
There was not a danger that this would be

approved without somebody who was here telling
the Court that there had been a sale because both

the trustee and the buyer knew that.

THE COURT: And I'm sitting here preparing for a
sale, trying to -- trying to do my work behind
the scenes when you- know — you know that's been
going on. You've been knowing this a long time,
and you let it happen. You let it happen. It's
not

an

isolated

instance.

It's

not.

It's

it's • • you've got to be candid on what's going
on, and — and I just don't'think it was there.
I don't think your -- I think your client's not
been candid. I don't think your client's been
candid.

But -- but we'll have a hearing on it to let
everybody have that opportunity on -- on that
issue. I will-have a hearing. I'll be specific
about what I know now. But it's going to be a
hearing. If something else shows up -you can ask
for a continuance if something else shows up, but

I am not limiting the hearing when I've got this
kind of conduct going on.
23

ci.:i.A072A

(Rev.8/82)

Ca e:16-00101-SDB Doc#:17 ^SEALED*

Filed:08/22/17 Entered:08/24/1716:47:43

Page:24 of 52

I -- I just -- the guy -- you say that you — you
that
you didn't think
it
was
a
good
settlement. He got a discharge, and he's trying
to take $400,000 or $300,000. He MR. BOUDREAUX: I'm not sure where the inference

that he's trying to take anything comes from.
There

was

a

check

sent

out

to

him

from

an

LLC

that he has no control over.

THE COURT: That he valued at a dollar. And he's

never amended his schedules. And, but for the
trustee finding out about it, no one would ever
know.

MR. BOUDREAUX: No, because it had — that check

showed

up

without

this

motion

pending.

The

trustee would have found out about the money.
This-

THE COURT: How would that MR. BOUDREAUX: Had this -

THE COURT: How would that — you're just MR. BOUDREAUX: — motion not been pending.
THE COURT: Oh, so the trustee has to find out

about it. "I'm going to hide it as much as I
can." But the trustee, if he finds out about it,
he gets it?
MR. BOUDREAUX: No,

Your Honor. I - what I'm

saying is I didn't know there was an imminent
closing for a sale. This -- had this motion not
been pending and had I not filed responsive
pleadings, I would have received an overnight
package with a $485,000 check for which I had no
idea why.
71. The transcript at pages 44-53 reflects Mr. Isenberg's
description of the negotiation attempted by Mr. Boudreaux
(after Mr. Boudreaux already had the check, but before Mr.
24

.i\012A
IRev. 8/81

ase:16-00101-SDB Doc#:17 ^SEALED*

Filed:08/22/17 Entered:08/24/17 16:47:43

Page:25 of 52

Isenberg became aware that the apartment complex had been
sold).

72. The transcript at pages 57-58 reflects the following
exchange:
MR. BOUDREAUX: [cont'd] ... Now, I never, at any
time, knew about a scheduled closing, but I did
know and obviously would know that if the
estate's interest is a minority share in an LLC
interest that's subject to restrictive cov- —

you know, provisions on transfer, that's worth a
lot less to the estate than cash. So yes, the

effort was to try to get that done before that,
because
once
there's
cash,
there's
no
negotiations.

But there's not any nondisclosure there. All of
that was part of the conversation and the ability
of us to fund any settlement with the trustee by

leveraging

the

LLC's

interest

and

the

other

members' interest in not having another strange

partner with them. That was -- that was fully
discussed.

THE COURT: But you didn't know about the real
estate sale at that time?

MR. BOUDREAUX: The first I knew that there had

been a closing was with Mr. Isenberg's e-mail
saying, "My client's got a check, and there's no
— there's no negotiation for cash." And I'll
look, but my recollection is I sent him some
short reply such as, "I agree." You know, at that
point, there's no more negotiations. At that
point, I filed a motion -- I filed a withdrawal
of my objection to the sale because, at that
point, I'm assuming there's no sale going
forward. There's nothing to happen except forme
to try to find $485,000 that was sent somewhere
on behalf of my client. And when I did, I let
them know that I had that check.

73. In reality,

by late July 2016,

25

A072A

(Rev.8/82)

Mr. Boudreaux

knew

se:16-00101-SDB

Doc#:17 *SEALED* FiIed:08/22/17 Entered:08/24/1716:47:43

Page:26 of 52

there was an agreement to sell the apartment complex and
knew

that

his

client

Chris

Mohr

stood

to

receive

a

significant distribution if the sale closed.

74. By no later than August 18, 2016, Mr. Boudreaux knew
that the SDGA trustee was seeking to sell Chris Mohr's 20%

interest in Spring Creek to PLI for $275,000, yet he did
not disclose the impending sale of the apartment complex
to the trustee or to the Court.

75. Instead, on September 9, 2016, Mr. Boudreaux filed an
Objection to the SDGA Motion to Sell, making arguments
that he knew had been overruled by the Bankruptcy Court in
the NDGA and without mentioning the specific provision of
the Operating Agreement that Judge Sacca considered to be
relevant for purposes of transferring an interest in the
LLC.

76. By no later than Wednesday, September 14, 2016, Mr.
Boudreaux knew that the closing was scheduled to close on
Monday, September 19, and that his client would receive
significant funds if it closed, but did not disclose these
facts to the trustee or the Bankruptcy Court.

77.

By

no later than Sunday,

September

18,

2016, Mr.

Boudreaux knew that the distribution check for Chris Mohr

would be overnighted to his (Boudreaux's) office.

78. On Tuesday, September 20, Mr. Boudreaux was in
possession of a check for $485,000 payable to Chris Mohr,
and he knew the money was property of the bankruptcy
estate, yet he did not report it to the trustee or the
Bankruptcy Court.
79.

Mr. Boudreaux hid the situation from the trustee, as

evidenced by his emails to the trustee's attorney, and he
attempted to negotiate a deal whereby his client (and
other LLC members) would pay $275,000 plus a break-up fee
for an interest that had already been sold and for which
he was holding a check for $485,000.
80.
the

On September 27, 2016, the morning of the hearing on
SOGA

Motion

to

Sell,

Mr.

Boudreaux

filed

a

withdrawal of his Objection to the SDGA Motion to

26

•A072A

(Rev.8/82)

basic

Sell

C se:16-00101-SDB

Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/17 16:47:43
Page:27 of 52

without disclosing that the apartment complex had already
sold and without disclosing that the money had been
disbursed and was in his possession.
81. At the hearing on the motion for turnover on October
6, 2016, when faced with express questions from the Court
about when he first knew that the closing would occur and
about when he received the check, Mr. Boudreaux provided
a series of misrepresentations and false statements.

82. According to Chris Mohr, Mr. Boudreaux instructed
Chris Mohr to not attend the hearing on October 6, 2016.
83. In addition to representing debtors in bankruptcy, Mr.
Boudreaux served as a chapter 7 trustee in the Southern
District of Georgia from October 15, 2008, until he
resigned from trusteeship effective December 16, 2016.
Tr. 04/14/2017, 92-93, Ex. UST-1, Stipulation of Facts, Dckt. No. 9.
Boudreaux also stipulated to the other facts set forth in
this Court's Sealed Show Cause Order and Supplemental Show Cause
Order as follows:

1.

In

re

Mohr,

Chap.

7

Case

No.

13-11606,

Mr.

Boudreaux failed to fully quote®the relevant text of 11

®Counsel cited "'[a] restriction on transfer of a beneficial
interest of the Debtor' under state law excludes that property from
the bankruptcy estate. 11. U.S.C, §541(c)(2)." Section 541(c)(2)
states in full "[a] restriction

interest

of

applicable

the

debtor in

nonbankruptcv

law

a
is

on

the transfer

trust

that

enforceable

is
in

of a

beneficial

enforceable
a

case

under

under
this

title." 11 U.S.C. §541(c)(2). (emphasis added to include omitted
language).
[At this Show Cause hearing, Boudreaux maintained at the time
he considered this "trust" language to be irrelevant to his
argument. This Court disagrees and continues to find this language
was relevant to the arguments being asserted in light of the
relevant case law.]
27

,A072A
(Rev.8/82)

C se:16-00101-SDB Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/1716:47:43

Page:28 of 52

U.S.C. §541(c)(2), leaving out the most pertinent language
"in a trust" when a key component of the legal analysis
was whether the pertinent asset was in a trust. See Dckt.
No. 351, 13.

2In ]j\ re McFarland, Chap. 7 Case No. 11-10218, Mr.
Boudreaux argued this Court lacked jurisdiction asserting
that two insurance policies were on appeal when only one
policy was actually on appeal. See Dckt. No. 417, Order,
p. 9.

3.
In the same McFarland case, at a hearing, Mr.
Boudreaux failed to recite the key portions of the local
rule on electronic signatures requiring the Court to

prompt him twice to read the entire rule; including key
provisions dealing with the validity of electronic
signature into the record. Dckt. No. 385, pp 7-8.

4.
In Jji ^ Brooks, Chap. 7 Case No. 13-10860, at a
hearing, Mr. Boudreaux asserted opposing counsel failed to
attach pertinent guaranties. The Court stopped the
hearing to have the courtroom deputy pull up the record to
reveal that opposing counsel had in fact attached the
guaranties to the pertinent pleading. Also in the Brooks
case, Mr. Boudreaux asserted without any citation to the
record that "RES has previously stipulated that it is not

a Georgia entity and is not registered with the Georgia
Secretary of State." Dckt. No. 532, p. 5. Opposing
counsel responded that the statement was incorrect and
noted that the statement lacked any citation to the record
and attached an exhibit showing the entity was in fact

registered with the Georgia Secretary of State. Dckt.
Nos. 540, p. 4 and n. 1 and 541, Ex. I.
5.

Mr. Boudreaux's unauthorized affixation of electronic

signatures of the purported petitioning creditors on the
involuntary chapter 7 bankruptcy petition of Cedar Rock
Holdings, LLC, Case No. 16-11519, when he did not have the
authority to represent or affix at least three (3) of
these purported creditors' signatures, and potentially
five (5) {or
more) of these
purported creditors'
signatures.

See Involuntary Ch. 7 Case No. 16-11519 Dckt.

Nos. 1, 2, 4 and 65.

28

,A072A

(Rev.8/82)

se:16-00101-SDB Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/1716:47:43

Page:29 of 52

6. Mr. Boudreaux made statements at the January 23, 2017
hearing in the involuntary chapter 7 bankruptcy petition
of Cedar Rock Holdings, LLC, Case No. 16-11519, whereby he
acknowledged he did not have authority to file the
petition on behalf of: Stewart Construction, LLC; CSRA
Testing & Engineering Co., Inc.; and W.R. Toole Engineers,

LLC. Tr. H'rg 1/23/17 25:2-5. He further stated he did
represent Parker Poe Adams & Bernstein PC {"Parker Poeu).
H'rg 1/23/17 Tr. 15:1-25-17:1-14; 24:9-25-25:1-6.
Nevertheless, in a subsequent pleading, Mr. Boudreaux
acknowledged he did not have the authority to affix the
electronic signature of Parker Poe to the petition, nor
did he have the authority to indicate that he represented
them as their attorney.
Ch 7 Case No. 16-11519, Dckt.
Nos. 76 and 77.
Dckt. Nos. 1 and 6.
SHOW CAUSE HEARING

These obviously are very serious ethical violations to
which Boudreaux has admitted to, and for which he has shown remorse.

As noted before, standing alone each one of these offenses merits
disbarment.

However,

in

certain

cases,

discipline

short

of

disbarment is appropriate. After reviewing the matter and because

of

the

mitigating

circumstances

discussed

below

this

Court

respectfully recommends Boudreaux be suspended for a period of one
(1) year, with his readmission subject to restrictions.
Background..

Boudreaux has been a member of the State Bar of Georgia

since the mid-1990s and has practiced primarily in the Bankruptcy
Court for the Southern District of Georgia. Tr. H'rg

29

A072A

(Kcv.8/82)

4/14/2017,

se:16-00101-SDB Doc#;17 ^SEALED* Filed:08/22/17 Entereci;08/24/1716:47:43

Page:30 of 52

134:1-5; 136:1-3.

After law school, he served as a law clerk of a

bankruptcy judge for almost two years.
14.

Tr. H'rg 4/14/2017, 134:7-

Later, Boudreaux was a partner in a local law firm from 2000 to

2015, recently
134:16-25.

opening his own law office.

Tr. H'rg 4/14/2017,

Boudreaux holds several bankruptcy certifications

and

has served as the Augusta Bar Association's Young Lawyers president
and on the board of directors and as chairman of the Bankruptcy

Section of the State Bar of Georgia.

Tr. H'rg 4/14/2017, 135:9-22.

He has been active in the local and state

bar associations.

Id.

The UST selected him, and he served as a chapter 7 panel trustee

from 2008 until he resigned in 2016.
For

Tr. H'rg 4/14/2017, 136:6-15.

years, Boudreaux sought treatment from his primary

care physician for mental health related issues including anxiety

and an inability to sleep. Tr. H'rg 4/14/2017, 137:2-13. As early
as 2006 Boudreaux and his primary care physician attributed these
symptoms

to

work

related
[Drug

prescribed

stress and

1], an

his

primary care

physician

anti-depressant, and

Drug

lA], a sleep aid. Tr. H'rg 4/14/2017, 137:4-13; 138-140; 143. At

some point, Boudreaux informed his physician he did not think the
medications
continuing

were
to

go

duly

addressing

through

his

extended

issues,

periods

and

that

without

he

was

sleep

and

experiencing other issues. Tr. H'rg 4/14/2017, 140:19-25;141:1. At
this point, his primary care

(R cv. 8/82)

se:16-00101-SDB Doc#:17 ^SEALED* Filed:08/22/17 Entered:08/24/1716:47:43
Page:31 of 52

physician provided him a generic listing of potential mental health
providers, but he did not make a mental health referral. Tr. H'rg
4/14/2017, 141:2-6. Boudreaux began seeking mental health care on

his own using the referral list and his insurance company's provider
list, but without a physician referral, he was unable to get a

prompt appointment because the providers had waiting lists. Id. 618.

Ultimately,

Dr.

Dirksen,

Boudreaux as a favor to

a

a friend.

psychiatrist,
Id. 19-24.

agreed

to see

These visits

private pay, and not covered byBoudreaux's insurance.

are

Id. 141:25;

142:1-2.

Finally, Boudreaux was properly diagnosed with Bipolar
Disorder I ("BP-I") by a mental health professional in December
2016,

and

his

medication

[Drug

2]

was

switched

[Drug

and

[Drug

from

3].

Tr.

H'rg

1]

to

4/14/2017,

139:13-25-140:1-7; 184:24-185:1-13.

According

to

Boudreaux,

mental

health

nurse

practitioner

[Drug 1] was contraindicated for BP-I and could

indicated

actually

the

worsen

Boudreaux's

his

condition.

psychologist,

Dr.

Tr.

H'rg

4/14/2017,

Frey, confirms that

140:1-8.
[Drug 1]

actually may worsen BP- I symptoms. Tr. H'rg 4/14/2017, 46-49.
Boudreaux's first appointment with his psychiatrist. Dr.

Dirksen, was around January 15, 2017 and in February 2017 he started
his therapy with Dr. Frey. Tr. H'rg 4/14/2017, 141:13-25; 184:24-

,A072A
(Rev. 8/82)

se:16-00101.SDB

Doc#:17 *SEALED*

FI!ed:08/22/17 Entered:08/24/1716:47:43

Page:32 of 52

25; 185:1-2; 33:24-25.

seven times.

As of the hearing date, he has seen Dr. Frey

Tr. H'rg 4/14/2017, 35:24-25; 36:1-3.

In addition to suffering from undiagnosed BP-I for some
time, Boudreaux also has experienced a number of highly stressful
family crises over the last few years. Starting in late 2011, when
his wife suddenly and unexpectedly suffered a major life-threatening
and life-altering arteriovenous malformation rupture when veins in

her brain ruptured. Tr. H'rg 4/14/2017, 144:18-25.
she

for

an

extended period of time and went through two years of extensive
therapy.

Tr.

H'rg

4/14/2017,

145:1-9.

While

she

has

made

a

remarkable recovery, she has

the inability to identify or verbalize the names of the objects, the

inability to properly sequence or think logically through multi-step
processes and difficulty with matters involving numbers. Tr. H'rg
her condition requires

4/14/2017, 145-146.

Boudreaux to assist her in many daily tasks. Tr. H'rg 4/14/2017,
146;2-4; 147:2-7. During the extended acute

phase of his wife's

treatment, Boudreaux remained the sole bread winner of the family
and

undertook

the

care

of

his

wife

and

their

three

children.

Tr.

H'rg 4/14/2017, 145-47. At the time of the onset of this crisis,
their children were approximately 17, 13 and 10 years old.

,A072A

Tr. H'rg

se:16-00101-SDB Doc#:17 ^SEALED*

Filed:08/22/17 Entered:08/24/1716:47:43

Page:33 of 52

4/14/2017, 133:20-21.
of the

household

Today, Boudreaux remains responsible for many

duties they traditionally shared,

such

as the

college application process, any multiple sequencing tasks and tasks
requiring working with numbers. Tr. H'rg 4/14/2017, 145-47.
Then in 2015, Boudreaux, himself, was hospitalized for a

week and a half with an aggressive strain of Methicillin-resistant

Staphylococcus
4/14/2017,

aureus

148:13-19.

bacteria

(MRSA)

Boudreaux

in

his

underwent

finger.

three

Tr.

H'rg

surgeries

and

described the difficulty in running his very busy law practice from

the hospital along with everything else that was transpiring in his
personal life. Tr. H'rg 4/14/2017, 148:13-25.
Then

in

2016,

his teenage

daughter

was swimming

with

friends at a local lake and one of her friends drowned as they were

trying to swim across a cove.

Tr. H'rg 4/14/2017, 147:9-18.

Boudreaux's daughter is a strong swimmer and tried unsuccessfully to
save

her

feelings
school.

friend.

Tr.

H'rg

4/14/2017,

147:9-25.

of guilt

from this incident and obtained

She

suffered

counseling at

Id.

Some months later, this same daughter returned to the lake

for the first time since the drowning and was involved in a serious
accident where she was pinned and dragged under a golf cart. Tr.

H'rg 4/14/2017, 148:1-7.

she nearly lost her leg.

33

,A072A
(Rev.8/82)

Id.

She was

se:16-00101-SDB

Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/1716:47:43

Page:34 of 52

hospitalized for 2 weeks and home schooled for 3 months thereafter.

Tr. H'rg 4/14/2017, 148:8-11.

For an extended period of time she

was homebound and required daily wound treatments.
In

dealing

addition

to these familial stresses,

with his own undiagnosed

Id.
Boudreaux

BP-I, cycling through the BP-I

phases without understanding or recognizing his illness.
4/14/2017, 149-150.

was

Tr. H'rg

He described the feelings caused by BP-I as the

abject feeling of spinning out of control, an inability to nail down
even routine matters, being in the eye of a tornado, and going the

periods of up to 4 days without sleep.
25; 143:1-9.

esteem,

Tr. H'rg 4/14/2017, 142:7-

He also says the condition instills an inflated self-

superman-type

complex,

where

he

saw

obstacle merely as an impediment to his goal.
156:2-14;

173:25;

174:1-4.

Initially,

he

any

objection or

Tr. H'rg 4/14/2017,
self-medicated

with

alcohol as a sleep-aid, but ultimately decided to just stay awake
and work.

Tr. H'rg 4/14/2017, 150:8-16.

At the time, he perceived

his excess energy enhanced his success by allov/ing him to be more

productive, take on more projects, while simultaneously caring for
his family, and training for and competing in Ironman competitions.
Tr. H'rg 4/14/2017, 143:1-9; 151:3-25; 152:1-5. Only in retrospect
does he realize how self-destructive his condition was becoming.

Tr. H'rg 4/14/2017, 143:1-9; 152:8-14.

34

,A072A
(Rev.8/82)

In his first meeting

with

se:16-00101-SDB Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/1716:47:43

Page:35 of 52

Dr. Frey, Boudreaux questioned how he got to this position, offering
"I've had a dissent into madness, and I don't know why.'' Tr. H'rg
4/14/2017, 54:22-25; 55:1.

He thought he had everything

under control, but in the

autumn of 2016, he began to realize things were spinning out of
control.

UST,

He was sending out vitriol emails, having issues with the

perceiving

everything

4/14/2017, 152-156.

as

a

personal

attack.

Tr. H'rg

Boudreaux now acknowledges this was irrational

paranoia but at the time he took every request as a personal attack.
Tr. H'rg 4/14/2017, 154:10-23.
Boudreaux admits he knew he was lying to the Court at the

October hearing involving his receipt of the settlement proceeds and
activities related to this transaction. Tr. H'rg 4/14/2017, 159:1-

10. With hindsight, proper medication and current logic he has no

explanation for his conduct. Tr. H'rg 4/14/2017, 159-160. "[I]n my
mind at that time, when I received the check didn't matter

It's

an absurd thought pattern, but I think that's the only one - the
only thing that I could say is that it - it seemed like a - it
wasn't significant." Tr. H'rg 4/14/2017, 160:8-19.
At the time, though, it was probably one of the
more severe manic phases that I had felt with
both the sleeplessness, the burst of energy,
with the perfect storm of lots of different
issues both in the Mohr case and in other cases

all kind of converging at the same time. It

35

c;twVQ72A
(Rev.8/82)

se:16-00101-SDB Doc#:17 ^SEALED*

Filed:08/22/17 Entered:08/24/17 16:47:43

Pag0:36 of 52

also
coincided
right
there
in
being
in
September with my daughter's golf cart accident
where she was in the hospital and the added
stress and exhaustion from being at the hospital
when I wasn't at the office to tend to that.

Tr. H'rg 4/14/2017, 159:20-25; 160:1-3.
Boudreaux's professional conduct, the quality of his work,
and his staff's work, continued to be unacceptable even after
October

hearing.

October

26,

2016,

Tr.

he

H'rg 4/14/2017,

filed

an

162-165.

involuntary

Thereafter,

bankruptcy

the
on

petition

without proper authority. Tr. H'rg 4/14/2017, 174-177; See Dckt.
Nos. 14-1, 14-2, 14-3.

Despite this lack of authority, he continued

to pursue the involuntary until the Court ordered its dismissal in
late January 2017. Dckt. Nos. 14-4, 14-5. At best, both he and his
staff stopped following normal procedures designed to help safeguard
professional and ethical conduct.

Tr. H'rg 4/14/2017,

164-168.

Boudreaux now takes full responsibility for both his and his staff's
actions.

Tr. H'rg 4/14/2017, 164:22-25; 165:1-5.
Since the Show Cause notice, Boudreaux has resigned as a

chapter 7 panel trustee and has decreased his workload to better
manage

his

workload.

Tr.

H'rg

4/14/2017,

202:6-20.

He

is

continuing to see Dr. Dirksen, his psychiatrist, and Dr. Frey, his
psychologist. Tr. H'rg 4/14/2017, 39:10-13. He wants to continue
to practice before this Court in the Augusta area and he thinks the

36

•-A072A

(Rev.8/82)

se:16-00101-SDB Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/1716:47:43

Page:37 of 52

local bankruptcy bar, the UST, and the Court are all well-aware of

his issues and will quickly point out any reoccurrence of this type
of conduct. Tr. H*rg 4/14/2017, 203:20-25; 206:24-25; 207:1-24.
Boudreaux acknowledges the seriousness of his misconduct.
He has shown real remorse, not just because of this disciplinary
action, but for his conduct.

From his testimony, and that of Dr.

Frey, it is apparent that he is struggling to understand why he has
behaved in this manner and taking steps to control this illness; and

to the extent possible, correct the consequences of his actions and
rebuild his reputation.

As far as his long-term prognosis, Boudreaux testified he

would never voluntarily go back to the way he felt before his

diagnosis and treatment. Tr. H'rg 4/14/2017, 188:13-21. He states
he would never unilaterally stop taking medications or going to

therapy. Tr. H'rg 4/14/2017, 188:13-21; 189:1-7. Boudreaux stated:
The last -- certainly, the last month, but maybe
a little bit longer than that, is the first time
that I've felt, normal to just relate, to deal
with things. And to try to imagine having gone
47 -- 46 and a half years the way I felt before,
there's no way that I would voluntarily go back
to that. If — it's finally feeling sanity and
sane and being able to manage affairs. And it's
across the board professionally, personally, and
everything. So I wouldn't ever try to do
anything to jeopardize that.
It's also because — the inability of practicing
in federal court or the state bar - - I

37

'<IILAO 72A

(Rev.8/82)

mean,

se:16-00101-SDB Doc#:17 *SEALED*

Fiied:08/22/17 Entered:08/24/1716:47:43

Page:38 of 52

it's how I provide for my family.

It's the only

way that I have of — I don't have a choice. If
I wanted to get off -- if I thought I could, I
don't have a choice but to maintain it because

there really is no alternative for me.
So both — for my choice at that point, I would
never choose to get off the meds because,

frankly, I -- I enjoy being on them. I feel
normal. And that's not something I've felt in
a long time, so I don't see why I would ever
stop the therapies or the medications that I
needed.

Tr. H'rg 4/14/2017, 188:13-24; 189:1-7.

Boudreaux apologized for his behavior and says he never
intends to be back in this position again stating:

. . . I'm very sorry for all of it, not just
October 6th [lying in ^
Mohrl , but
everything else. I understand the position that
I put the Court in, the U.S. Trustee, Mr.
Cleary. You know, it's - - I'm happy that I have
the support of Mr. Cleary and Mr. Tisdale and
but I've put everyone in a very
awkward position, a bad position, and I'm very
sorry for that. And I don't — I don't intend to
be back in this position again, and I wish that
I would have had help sooner and hopefully would
have avoided the situation. But I do apologize,
and I am sorry for that.

Tr. H'rg 4/14/2017, 190:5-13.
Other Witnesses.

At
testifying,

Boudreaux's

,A072A
(I^v.8^)

the

show

cause

hearing,

in

addition

to

Boudreaux

Boudreaux's counsel called the following witnesses:

psychologist,

Dr.

Joseph

Frey

III;

an

attorney

se:16-00101-SDB

Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/1716:47:43

Page:39 of 52

previously diagnosed with BP-I and successfully practicing with the
treated

illness

for

over

20

years,

;

and

Boudreaux's colleague and former law partner, Andrew Tisdale.
Dr. Frev.

Dr. Joseph Frey III7, Boudreaux's psychologist, testified
that Boudreaux's first appointment with him was in February 2017
when

Boudreaux

was

4/14/2017, 33:24-25.

referred

Dr. Frey detailed

disorders.

him

by

a

counselor.

Tr.

H'rg

As of the hearing date, Dr. Frey has had seven

appointments with Boudreaux.

treatments.

to

Tr. H'rg 4/14/2017, 35:24-25; 36:1-3.
the nature of bipolar

disorders and

Id. He explained there are two forms of bi-polar
BP-I which was traditionally called manic depression

affecting a very small percentage of the general population and

generally being more loaded with the manic side of the disease; and
BP-II which is much more prevalent and generally more loaded to the

depressive side of the disease. Id. at 40-42; 47:11-25. Patients
with BP-I cycle through manic and depression, although depression
does not have to be prominent in BP-I patients. Tr. H'rg 4/14/2017,
40-43; 90:1-8. He described the manic phase of BP-I as a euphoric

^Dr. Frey was admitted as an expert without objection. He is
a licensed psychologist with over thirty years of experience and
previously has been qualified in state and federal court as an
expert witness. Tr. H'rg 4/14/2017, 32:17-25; 33:1-10.

,A072A

se:16-00101-SDB

Doc#:17-^SEALED*

Filed:08/22/17 Ent0red:O8/24/1716:47:43

Page:40 of 52

state of high goals with periods of lucidity. Tr. H'rg 4/14/2017,
49:1-12;

90:15-25;

91:1-3.

Some

common

symptoms

of

BP-I

are

increased goal-directed activities and high energy levels that often
are channeled into self-defeating, even self-destructive behaviors

such as buying sprees, gambling, risky sexual behavior, no selfawareness, and irritability.

Tr. H'rg 4/14/2017, 43:9-14, 56:21-25;

57:1-7; 64-65; 80:1-9.

Dr. Frey testified that many mental illnesses such as BP-I

are genetically loaded making certain patients more predisposed to
suffer from the illness.
According

difficult.

to

Dr.

Frey,

Tr. H'rg 4/14/2017, 37:6-10; 43:22-23.
Boudreaux's

diagnosis

Tr. H'rg 4/14/2017, 38:23-25; 39:1-2.

of

BP-I

was

not

He testified that

Boudreaux did not suddenly become stricken with BP-I at the age of
47, rather

based

upon his evaluations,

Boudreaux

probably began

presenting symptoms of BP-I in his 20s but they were under control
and most likely evidenced through things like by staying up late and

having extra energy to study.
25.

Tr. H'rg 4/14/2017, 59:9-23; 99:11-

By his mid 30s his symptoms of BP-I became more evident as seen

by him becoming heavily involved with online social media, including
some pornography.

Tr. H'rg 4/14/2017,

59:9-23.

He was able to

self-correct this activity well before being diagnosed with BP-I.
Tr. H'rg 4/14/2017, 84:9-17.

Until recently, he has been able

40

'll:.A072A

(Rev.8/82)

to

se:16-00101-SDB Doc#:17 ^SEALED* Filed:08/22/17 Entered:08/24/1716:47:43
Page;41 of 52

channel

his

manic

state

into

mainly

acceptable,

and

even

respectable, endeavors, such as taking on more work, managing his
family obligations, while simultaneously training for and competing
in Ironman competitions; however, without treatment. Dr. Frey says

eventually a person will "hit a wall" or "fall off a cliff" when
more and more demands are made on

the

person's time. Tr. H'rg

4/14/2017, 59:14-25; 60:1-22; 83-88. For Boudreaux, after years of
successfully channeling the illness, and being a respected member of
the Bar, he ultimately began to hit the wall over the last few
years.

Dr.

actually may

Frey

have

worsen

[Drug 1] initially

says the

Boudreaux's

condition

prescribed

causing

him

to

cycle through a reduced manic state into a manic state. Tr. H'rg
4/14/2017, 47- 49:1-12. Dr. Frey says the BP-I cycling phases can
last anywhere from seven days to several months. Id. at 89:18-2090:1-8.

At the time of Boudreaux' s first visit with

Dr. Frey,

Boudreaux had already begun taking the medications protocoled for
[Drug

BP-I --

2

and

4/14/2017, 50:6-13; 139:23- 25; 140:1-2.
manage BP-I's symptoms, and

Tr.

3].
[Drug

2]

H'rg
helps

[Drug 3]is a mood stabilizer.

Tr. H'rg 4/14/2017, 46:14-16.

The

medications

and

dosages are managed by Boudreaux's psychiatrist. Dr. Dirksen. Tr.
H'rg 4/14/2017, 50:1-13; 84:23-25.

,A072A

(Rev.8/82)

Dr. Frey has not discussed

se;16-00101-SDB Doc#:17 *SEALED* Filed:08/22/17 Entered;08/24/1716;47;43
Page:42 of 52

Boudreaux's case with Dr. Dirksen, but, they work in conjunction
with Dr. Frey treating Boudreaux through therapy and Dr. Dirksen
treating Boudreaux pharmacologically. Tr. H'rg 4/14/2017, 31:1-4;
39:17-19.

Dr.

Frey stated that the medications

[Drug 2 and 3] are the most common medications for BP-I and may be

adjusted

over

time

to individualize the dosage for a particular

patient. Tr.H'rg 4/14/2017, 46:14-16; 50:18-23; 51:1-7; 52:4-13.
[Drug 2] dosage recently

Boudreaux's

from 300 to 600 milligrams.

has

been

doubled

Tr. H'rg 4/14/2017,50:18-23; 52:3-13.

Dr. Frey explained this is common, as the psychiatrist and patient
try

to

reach

the

proper

dosage

generally

starting

low

and

gradually increasing. Tr. H'rg 4/14/2017, 51:1-7, 52:3-13.
Dr. Frey also explained the BP-I medication does not take
effect immediately. Tr. H'rg 4/14/2017, 51:15-24. He says this may
explain why some of Boudreaux's misconduct continued even after he
began taking the proper medications and was on notice of these show
cause matters. 78:5-25; 79:1-7. Dr. Frey says it may take a year
for the appropriate dosage of medication to be determined.

Tr. H'rg

4/14/2017, 85:4-11.

When discussing Boudreaux's behavior outlined in the show
cause orders, Dr. Frey explained while Boudreaux's illness does not

•|:tA072A

(Rcv.8/82)

ase:16-00101-SDB Doc#:17 *SEALED* Filed:08/22/17 Entered:08/24/17 16:47:43
Page:43 of 52

excuse his behavior, it may help explain the conduct, including his

lying. Tr. H'rg 4/14/2017, 70:15-24. Dr. Frey acknowledges lying
itself is not a listed symptom for BP-I in the Diagnostic and
Statistical

Manual

for

Mental

4/14/2017, 95:23-25; 96:1-12.

Disorders

("DSM-5").

Tr.

However, he explained in the

H'rg

manic

state, Boudreaux would be highly distracted, goal-driven, "flying
fast", lack focus on important details, resulting in him making

things up as he went along. Tr. H'rg 4/14/2017, 69:5-24; 96:20-25;
97:1-25. In a full blown manic episode, Boudreaux would see details

or opposition as a mere obstacle in the way of his goal, and with the
illness-driven inflated self-esteem Boudreaux would think he did not

"have to answer all those little details in the courtroom."

Tr. H'rg

4/14/2017, 69:5-24; 70:1-12. During the manic episodes, Boudreaux
would have little to no self-awareness or ability to reflect on how

his anger and belligerence was coming across to people. Tr. H'rg
4/14/2017, 57:1-7.

Dr. Frey explained Boudreaux's behavior of being

rude and vitriolic and interrupting people can be attributed to this
inflated self-esteem common in BP-I. Tr. H'rg 4/14/2017, 70:1-25-

71:1-24. Boudreaux's pressured speech and jumping from one idea to
another without connecting them solidly also is consistent with the
illness. Tr. H'rg 4/14/2017, 70:1-25-71:1-22.
Dr.

Frey

acknowledges

43

A072A

(Rev.8/82)

there

is

a

high

rate

of

se;16-00101-SDB Doc#:17 ^SEALED* Fi!ed;08/22/17 Entered:08/24/1716:47:43
Page:44 of 52

noncompliance

with

most

psychiatric medications,

Dr. Frey bases this prognosis on following:

is moderate,

in fact Dr.

of moderate";

he

thinks

Tr. H'rg ^3/14/2017, 52: 24-25 ;■ 84 :14-

Boudreaux's prognosis is good.
17.

but

Boudreaux's BP-I

Frey characterized it as "on the light side

he has not had a full expression of the disorder;

does not have any other accompanying personality disorders;

he

hedoes

not have drug or alcohol abuse/dependency problems; he has not been
hospitalized

for

the

illness;

he

was

able

to

self-correct

his

previous forays into inappropriate behaviors especially before his
wife's illness; the length of time it took from onset to catastrophic
event shows he can channel the illness in constructive behaviors;

he

has a high level of self-awareness and reflectiveness; and he values

and enjoys the practice of law.
83:16-25;

Tr. H'rg 4/14/2017,

84:1-17; 87:20-25; 88:1-13.

53-56; 58:9-12;

All of these characteristics

lead Dr. Frey to conclude that Boudreaux prognosis for duly managing
the

illness

is

However,

Dr.

continue

with

recommended.
Dr.

Frey

Frey

Tr.

Tr.

says

and

to

H'rg

4/14/2017,

continue

84:15-17;

progressing,

107:1-6.

Boudreaux

must

the medications and therapy as prescribed and
H'rg 4/14/2017,

the

stabilizing

,A072A

good.

52:16-19;

84:18-22.

Drug
can

be

2

According to

and

3 ]

are

se;16-00101-SDB Doc#:17 *SEALED* Filed:08/22/17 Entered:08/24/1716:47:43
Page:45 of 52

effective

medications for life.®

Tr.

H'rg

4/14/2017,

84:23-24;

112:3-16. The medications and therapy sessions will help Boudreaux

stay accountable and recognize manifestations of the illness, which
in turn will lessen his chances of
4/14/2017, 53-57; 112:17-25

being non-compliant.

Tr. H'rg

The symptoms of BP-1 are easily spotted

by a professional and can be addressed if Boudreaux continues with
proper treatment. Tr. H'rg 4/14/2017, 112:17-25.

a fellow attorney
from

BP-I

also

testified

on

behalf

of

Boudreaux

explaining

presentment and successful treatment and management of the
over

the

last

20

,

years.

like

Boudreaux,

was

her

illness
a

highly

successful attorney and initially able to channel her disorder into
acceptable

professional

and

personal

endeavors.

However,

she

ultimately began lying to people, including her law partners, clients
and a judge. Tr. H'rg 4/14/2017, 119:1-10. She also began stealing
money from her sister and her parents and giving away large sums of
money. Tr.

H'rg

4/14/2017,

121:7-10;

129:11-14.

She

acknowledged

that she lied to a Superior Court Judge to improperly obtain

"

his

Unlike anti-depressants, such as Paxil, that may not work

after a person has taken them for awhile, the literature on

[Drug 3 and 2] have not reported these issues, according
to Dr. Frey. Tr. H'rg 4/14/2017, 112:3-16.

,A072A

(Rcv.S^)

se:16-00101-SDB Doc#:17 *SEALED* Filed:08/22/17 Entereci:08/24/1716:47:43
Page:46 of 52

signature on adomestic order.
22.

Tr. H'rg 4/14/2017, 119:3-5; 119:15-

Prior to receiving treatment, she also lied to her client, law

partners, family and friends.
She described the manifestations of the disease as being

in the eye of a tornado, no impulse control or ability to reflect,
going days without sleeping. Tr. H'rg 4/14/2017, 120-121, 124. When
asked about lying to the judge, she said she knew she was lying at
the time but had no impulse control with the illness, so if she
wanted something done she just did it. Tr. H'rg 4/14/2017, 119:4-5;
120:5-8. "[I]f 1 wanted something done or to do something, I just
did it without any repercussion, any thought about it. There was

like no impulse control from my brain to doing whatever I was going
to do." Tr. H'rg 4/14/2017, 120:3-8.
Consistent

finding

the

correct

with

Dr.

Frey's

medication

and

testimony,

dosage

stated

took

some

time,

specifically for her it took from 1994 to 1996 to get the medicine
regulated

Tr. H'rg 4/14/2017, 120:15-25; 121:1-6; 123:6-13.

surrendered her law license for 18 months®and for the first year

The Georgia Supreme Court's final order suspending Ms.

for 18 months was entered Hj^^^H^^^Hh l^owever the Court
made the suspension retroactive

when the Court

had granted an interim suspension.^w^ reinstated on
1996.

,A072A
(Rc%.8/82)

se;16-00101-SDB Doc#:17 ^SEALED* Filed:08/22/17 Entereci:08/24/1716:47:43
Page:47 of 52

after she returned to practice she was required to submit a monthly

report from a board-certified psychiatrist stating she was mentally
fit to practice law. Tr. H'rg 4/14/2017, 130:13-24;

She has successfully returned to the practice of law and
been on medication without incident or complaint for more than 20
years.

Tr.

H'rg

4/14/2017,

123:1-17.

Although

she

no

longer

requires therapy, she knows if her stress levels are elevated she
must go to her doctor and have her blood levels checked. Tr. H'rg
4/14/2017, 123:10-22.

Initially, these checks were quarterly and now

after 20 years the checks are

done yearly.

Id.

Over the

years,

various issues have arisen and she and her medical professionals have
been able to manage

episodes.

her medications

without any destructive

BP-I

Tr. H'rg 4/14/2017, 123:6-17.
concluded:

It is horrible to have manic depression. I
mean, it is horrible to be bipolar. But I
promise you that there - - it's possible to do

well and get better. I'm just so grateful that
somebody gave me a second chance.

I really am.

Tr. 04/14/2017, 125:13-17.
Andrew

Mr.

Tisdale.

Tisdale

friend of Boudreaux's.

,A072A
(Rev. 8/82)

is

a

professional

colleague

and

personal

Not only are the two former law partners but

se:16-00101-SDB

Doc#:17 *SEALED* Flled:08/22/17 Entered:08/24/1716:47:43
Page:48 of 52

they have remained colleagues collaborating and referring cases to
one another. Mr. Tisdale testified to the

marked difference in

Boudreaux's recent irrational, agitated and sometimes rude behavior

compared to the calm, well-mannered and congenial Boudreaux he knew
when the two were law partners and colleagues.

Mr. Tisdale testified

he knew something was wrong with Boudreaux lately, but he attributed
it to the stresses in Boudreaux* s personal life after his wife's
illness and other family crises.
ANALYSIS AND RECOMMENDATION

This proceeding was conducted in accordance with Southern
District of Georgia Local Rule 83.5 which states, "Any attorney who
appears in

a

case

or

proceeding, or

who

represents a

party in

interest in a case or proceeding, may for good cause shown, and after
notice and hearing, be disbarred, suspended from practice for a
definite time, reprimanded, or subjected to other discipline as the
Court

may

deem

proper."

S.D.

Ga.

L.R.

83.5(a).

The

local

rule

further states the standards of professional conduct of attorneys
appearing in the Southern District of Georgia are governed by the
Georgia

Bar

Rules

of

Professional

Conduct

and

the

American

Bar

Association's Model Rules of Professional Conduct and a violation of

these rules may subject the attorney to appropriate disciplinary
action. S.D. Ga. L.R.. 83.S(d).

48

,A072A
(Rev.8/82)

se:16-00101-SDB

Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/1716:47:43

Page:49of52

Based

upon the stipulated facts and acknowledgments,

Boudreaux has stipulated to violating several of the Georgia Rules
of Professional Conduct as well as American Bar Association's Model

Rules of Professional Conduct. As set forth in the show cause orders

these

include;

Georgia

Rules

of

Professional

Conduct

1.15(1)

(Safekeeping Property-General), 1.2(d) (Scope of Representation and
Allocation of Authority Between Client and Lawyer), 3.1 (Meritorious
Claims and Contentions), 3.3 (Candor Towards the Tribunal), 3.4

(Fairness to Opposing Party and Counsel), 4.1 (Truthfulness in
Statements to Others), and 8.4 (Misconduct), and ABA Model Rules 1.15

(Safekeeping Property), 3.1 (Meritorious Claims and Contentions), 3.3
(Candor Towards Tribunal), 4.1 (Truthfulness in

Statements to

Others), and 8.4 (Misconduct). The maximum penalty for violation of

these rules, except for Rule 3.1, is disbarment.

The maximum

penalty for violation of Rule 3.1 is public reprimand.
In this case, the offenses obviously are very serious and

will not be tolerated - lying to the Court, improperly receiving and

holding funds belonging to a bankruptcy estate, improperly attempting
to use the power of the Bankruptcy Code'"to forcefully place an
entity into bankruptcy without their consent, lacking candor, and
failing to fulfill the minimum standards of professionalism. Each

11 U.S.C. §303(b) (1).
49

,A072A
(Rcv.8«Z)

se:16-00101-SDB Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/1716:47:43

Page:50 of 52

of these offenses alone merits disbarment.

However, in this case,

there also are compelling mitigating circumstances.
It is clear Boudreaux has been seeking treatment for this
problem

since

unmanageable.

the

The

early

2000s,

medicine

well

he

was

before

the

initially

illness

became

prescribed

was

ineffective for BP-I and may have actually exasperated the negative

aspects of the illness. This coupled with the additional stresses
he has faced in his personal life are mitigating circumstances to
consider in light of his illness.

To be clear, none of these excuse

Boudreaux's conduct, but they provide compelling mitigating factors
to offer him a pathway to return to the practice of law.

Dr. Frey testified Boudreaux has shown self-reflection and

remorse regarding his actions, and from Boudreaux's own testimony and
demeanor, this Court thinks his remorse

is sincere.

He does not

appear merely to be remorseful for having to face this disciplinary
action, but for his

actual conduct.

Dr.

Frey says Boudreaux

is

struggling to come to terms with his conduct and rectify the damage
where possible and rebuild himself and

his reputation.

Dr. Frey

thinks Boudreaux's chances for successful treatment are good because:
his BP-I is on the light side of moderate; he has not had a full

expression of the disorder; he does not have any other personality
disorders which often hamper successful treatment; he has not been

50

'll>.A072A

(Rev. 8/82)

se;16-00101-SDB Doc#:17 *SEALED* Filed:08/22/17 Entered:08/24/1716:47:43

Page:51 of 52

hospitalized for the illness; he has shown a

high level of self-

awareness and reflectiveness in his therapy sessions; he was able to
successfully channel the illness for a number of years; and he values

and enjoys the practice of law. All of these factors according to
Dr. Frey increase the likelihood that Boudreaux will be compliant
with his treatment protocol and be able to successfully manage the
illness. Boudreaux himself testified to his desire to remain on the

medicine treatment saying this was the first time he has felt normal

in 47 years. He could not imagine wanting to go back to his pretreatment

state.

Considering these matters along with the fact that up and
until the last few years, Boudreaux has been a well-respected active
member of the Bar for more than 20 years, and this conduct is out of

character with his previous carriage before this Court and Bar, this
Court respectfully recommends:

1.

Boudreaux be suspended from the practice of law in the

District Court for the Southern District of Georgia for a
period of one (1> year.

2. At the end of this one (1) year period, Boudreaux be
authorized to petition for readmission to the District
Court for the Southern District of Georgia, pursuant to
District

Court

Local

Rule

83.S(h).

His

readmission

petition shall be accompanied by (i) confirmation from a
board-certified psychiatrist that Boudreaux is fit to
return to the practice of law; (ii) confirmation from a
board-certified psychologist that Boudreaux is fit to
return to the practice of law; and (iii) a certification
that Boudreaux is duly licensed and in good standing with

51

A072A

(Rev. 8 82)

se:16.00101-SDB

Doc#:17 *SEALED*

Filed:08/22/17 Entered:08/24/17 16:47:43

Page:52 of 52

the State Bar of Georgia;

3.
For the period of one {!) year after Boudreaux is
redmitted to practice lav; in the District Court for the
Southern District of Georgia , he shall submit to the
District Court a monthly report(s) from aboard-certified
psychiatrist and a board-certified psychologist stating he
remains mentally fit; and
4.

The final order of the District Court be referred to

the State Bar of Georgia for disciplinary action.

(h/v\
SUSAN

D.

BARRETT

CHIEF UNITED STATES BANKRUPTCY

Dated at Augusta , Georgia

this

day of August 2017

52

AO 72A

(Rev. 8 82)

JUDGE