Opinion
Case Number 06-40078, Case Number 06-40080, Case Number 06-40093, Case Number 06-40108.
April 14, 2006
ORDER ENJOINING JOSEPH-MARIO SPATES FROM ACTING AS PETITION PREPARER FOR ONE YEAR
The matter before the Court is the Order Directing Petition Preparer Joseph-Mario Spates ("Spates") to Appear and Show Cause ("Show Cause Order") why he should not be (i) enjoined from acting as a petition preparer, (ii) further sanctioned, and/or (iii) further fined for (a) his failure to comply with orders of this Court, and (b) for the unauthorized practice of law. The Court issued the Order to Appear and Show Cause on March 16, 2006. Upon the motion of Spates for a two week extension of time to retain counsel, this Court adjourned the hearing on the Show Cause Order until April 13, 2006. The hearing on the Show Cause Order was held on April 13, 2006.
On March 24, 2006, the United States Trustee filed Response of United States Trustee to Show Cause Issued by United States Bankruptcy Court Directing Petition Preparer Joseph-Mario Spates to Appear and Show Cause ("UST Response"). The UST Response urged the Court to permanently enjoin Spates from acting as a petition preparer because Spates had failed to abide by and had violated an Agreed Order issued by the Bankruptcy Court in Akron concerning his prior conduct that constituted the unauthorized practice of law.
On March 28, 2006, Spates filed Preparer's Response to Court's Show Cause Order; and United States Trustee's Argument for Permanent Enjoinment [sic] as a Result of Preparer's Alleged Violation of 11 U.S.C. Section 110 ("Spates' Response"). Spates' Response did not address his failure to pay the Five Hundred Dollar ($500.00) fine imposed by this Court on February 24, 2006 or the allegation that he had engaged in the unauthorized practice of law. Instead, the Spates' Response dealt soley with what Spates characterized as the "unsubstantiated statement of the Trustee" and that the Trustee "deliberately misled" the Court in the UST Response.
Spates appeared at the hearing on April 13, 2006 and confirmed that he had, indeed, prepared pleadings for Eric E. Richard and Essie D. Richard to file in Case No. 06-40078. He also admitted that he had not paid the Five Hundred Dollar ($500.00) fine, as previously ordered. The only reason offered by Spates for the failure to pay the fine was that he intended to retain a lawyer and oppose the imposition of the fine. The Court noted that Spates had not appealed the February 24, 2006 order and that it was now a final order of the Court.
The United States Trustee rested on its Response.
Despite the docket entry showing the Agreed Order dated March 24, 2006 in Eisen v. Spates, Adv. Pro. No. 05-05118, Bankruptcy Case No. 05-53303 (Debtor Kayondia Bradley), Spates continued to allege that he never agreed to this order. The Court, in reliance on the admitted conduct of Spates that constituted the unauthorized practice of law, and the authority in 11 U.S.C. § 110(j)(3), enjoined Spates from engaging in any activity as a petition preparer within the Northern District of Ohio for a period of one year (i.e., until April 14, 2007).
The Court further ordered Spates to pay the Five Hundred Dollar ($500.00) fine within one week — by April 20, 2006 — or the Court would issue a further order to appear and show cause that could result in the imposition of additional monetary fines.
IT IS SO ORDERED.