Friday, September 09, 2005

Katz Story Continues to Unfold

Michigan Judge Sets Trial Date for Echeneidae Collectoris

As we earlier reported almost exactly one month ago, Howard Katz got caught sneaking bogus collections cases through the Michigan courts (not much new there in terms of what those kinds of lawfirms will try to get away with).

But one of the courts finally got fed up with the smell, and now Judge David Bajorek has ruled Katz is to be tried later this month on contempt charges - as in 308 counts of filing fraudulent documents and affidavits.

It's not the nature of the cases or the contempt charges - what's worrying the creditor's bar right now is the magnitude of the prospective penalties. Judge Bajorek's view is that Katz faces 30 days in jail and a $250 fine for each of the counts, mainly because he agreed with prosecutor John Gillooly that Katz did it as a "continuing practice."

That's a little more than 25 years. That might just get their attention, although the $77,000 probably won't keep any of them up at night and it's unlikely Katz (at the age of 60) will spend the rest of his life in prison.

But the case has gotten the attention of other Michigan courts who are digging into Katz's filings. And we can hope the civil suits will follow shortly and in sufficient numbers to put the Katz operation out of business permanently.

One Echeneidae Collectoris nearly down, many to go.

The Honorable Judge Roy Bean

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