An attorney representing fraud victims of Scott Rothstein told a bankruptcy judge Monday that watching the 15-month litigation over a computer project management system used by the law firm chairman was like being stuck in the Bill Murray movie "Groundhog Day," where every 24 hours repeats itself.
At every hearing, Qtask makes the same arguments in slightly different ways, costing the estate of Rothstein's defunct law firm more money and keeping critical information from the bankruptcy trustee, said Jim Silver, a Rothstein investor attorney with Conrad & Scherer in Fort Lauderdale.
U.S. Bankruptcy Judge Raymond Ray wouldn't hear any more excuses for Qtask not following his August orders to turn over critical information to Herbert Stettin, the court-appointed bankruptcy trustee for Rothstein Rosenfeldt Adler.
He previously granted Stettin's motion for sanctions and set penalties Monday totaling $585,000 -- a $400,000 fine and $185,000 in opposing attorney and expert fees.
Ray cut the Burbank, Calif.-based company a break, calculating the fine from the date an independent expert evaluated the conflict for the court and found in favor of Stettin.
Robert Buschel, a former RRA attorney representing Qtask, was adamant that Qtask complied with Ray's order to provide Stettin and his attorneys access to the contents of RRA files. He said the remaining issue was putting the information on servers for Stettin's attorneys at Berger Singerman so no one at Qtask could track the investigators' work.
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Source: law.com
By: John Pacenti
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