Government Alleges Misconduct By Attorney in FBAR Related Summons Enforcement Case (10/26/19)

I ran across an article on Law360:  NY Man's Atty Made False Statements In FBAR Row, US Says (Law360 10/21/19), here (subscription required).  Since allegations against attorneys are rare, I poked around the docket entries in United States v. Chabot (D. N.J. - No. 3:14-cv-03055).  I offer here links to key documents filed as of today, but offer no comment on them.  Those interested should read the documents.  The attorney against whom the allegations are made has not filed a response.  I will look for the response and provide a link as an update when it is filed.

The docket entries on CourtListener are here.  They are available on Pacer, of course, but readers who are cost-sensitive might want to review on CourtListener which is a free service.

This is a summons enforcement action originally started in 2014.  Somehow, the case has been pending for a long time now, with some intrigue along the way.  One of the reasons for the delays is Chabot's continued intransigence, with resulting appeals.  See United States v. Chabot, 793 F.3d 338 (3d Cir. 2015) here, cert. denied, 136 S. Ct. 559 (2015) (rejecting Fifth Amendment as to foreign bank records); and United States v. Chabot, 2017 U.S. App. LEXIS 4355 (3d Cir. 2017), here, cert. den. (nonprecedential) (affirming Chabot's contempt).  Chabot's position in both appeals, asserted by Richard Levine appear tenuous at best, at least in hindsight. although the Third Circuit did feel the need to write a precedential opinion in the first appeal which would likely not be needed if the argument were frivolous.

The key document on the subject of the article:  U.S. brief titled "United States of America's Brief Regarding Past Statements by Eli Chabot and Richard Levine," Dkt Entry 150 here.  A prior related motion, titled "United States of America's Renewed Motion for an Increased Sanction to Compel Compliance," Dkt Entry 141 here.

In that brief (Dkt Entry 150), the Government makes strong allegations against Mr. Chabot and against his prior attorney in the litigation, Richard Levine.  The allegations are captioned, respectively:

ELI CHABOT – FALSE STATEMENTS (Brief Dkt 150 pp. 4-8) 

RICHARD LEVINE – ETHICAL VIOLATIONS (Brief Dkt 150 pp. 8-17), with the following subtitles:
The Changing Bases of Chabot’s Defense (starting on p. 9)
Misrepresentation of the FBAR Requirements (starting on p. 12)
False or Misleading Evidence (starting on p. 13)
Frivolous Motions to Compel Production (starting on p, 16)

The Government concludes by requesting that "that the Court take whatever action it deems necessary to vindicate its authority and to enforce all applicable laws and regulations governing the legal and ethical obligations of attorneys practicing in New Jersey."

Mr. Levine has engaged counsel.  See letter of 10/24/19, here, requesting until 12/4/19 to respond.

I will post an update with a link to the response when filed.