A new $3.5 Million award against John Pierce’s firm Pierce Bainbridge
A pair of financial advisory companies have secured a $3.5 million arbitration award against Pierce Bainbridge Beck Price & Hecht LLP. The award is based on assistance the companies allegedly provided in helping Pierce Bainbridge receive tens of millions in capital from litigation funder Virage Capital Management. The news is incredible; it comes after Virage said the law firm defaulted on a debt reported to be approximately $65 million.
The new legal action — filed over the weekend — adds intrigue to the Virage Capital “Money Mystery” involving Pierce Bainbridge and spin-off firm Hecht Partners.
Pierce Bainbridge has represented Rudy Giuliani, Tulsi Gabbard, Carter Page, Michael Avenatti and more; in addition, John Pierce currently represents Kyle Rittenhouse under “Pierce Bainbridge P.C.” The big-time clients have put a big-time spotlight on Pierce and his law firms. It has not been pretty.
Pierce Bainbridge Beck Price & Hecht has been on the receiving end of legal actions from around ten cash advance lenders or vendors of legal services, and appears to have an aggregate debt of around $75 million. On top of this, the Wisconsin prosecutor’s office recently expressed a concern about “ample opportunity” for John Pierce to be involved in “self-dealing and fraud,” related to financial issues in the Rittenhouse case.
Yet, Pierce continues unchecked, with his current “fundraising efforts” directed daily at the general public.
The $3.5 million arbitration award was issued on November 20, 2020. Pierce Bainbridge simply did not show up for a hearing earlier in the month. An excerpt from a court filing this weekend describes the award.
The submission also includes illuminating details about the financial relationship between Virage Capital and Pierce Bainbridge.
It’s worth noting that Rudy Giuliani announced that he hired Pierce Bainbridge on November 6, 2019, which was a few weeks after he pocket-dialed a reporter and said, “we need some money.” These recent filings confirm that Virage Capital made a $21 million loan commitment to Pierce Bainbridge just one week later, on November 14, 2019.
In addition, after Pierce Bainbridge was already in a massive hole, Virage appears to have funded spin-off firm Hecht Partners in May. A new potential wrinkle has arisen, as a UCC lien filing suggests that Hecht Partners — listed as the “Debtor” — took on additional debt in October, however the entry lists a different “Secured Party” representative than listed for the May filing. (An ex-partner of Hecht Partners, Janine Cohen, appears to have left shortly after the October filing.)
As for the embattled Pierce Bainbridge, a bevy of financial misconduct relates to underlying events tied to the tenures of Pierce and his former co-named partners: James D. Bainbridge (Bainbridge APC Law), Carolynn K. Beck (Goldstein & McClintock), David L. Hecht (Hecht Partners) and Maxim “Max” Price (Hecht Partners.)
A review of some of the known financial issues is astounding.
- Repeatedly pledged collateral in exchange for millions in cash, which led to four lawsuits claiming total damages in the multi-millions.
- Six vendors have sued the firm for alleged failure to pay debts when they became due. At least two cite invoices dating back to 2018.
- Basically pilfered $2.5 million from a pay day lender in Queens, New York in February. Agreed to daily repayments were not made, an almost $4 million judgment was entered against Pierce Bainbridge and related entities in July.
- At least two default judgments have been requested against Pierce Bainbridge.
- An ex-client was put up in a $1.3 million for two years. The landlord has sued. The ex-client is facing eviction.
- Pierce Bainbridge defaulted on its debt to Virage Capital. The firm was reported earlier this year to owe Virage $65 million.
- Now comes news, that Pierce Bainbridge owes $3.5 million to a financial advisory companies that allegedly helped secure the tens of millions in capital from Virage.
One wonders the role of former Pierce Bainbridge Chief Financial Officer, Kevin Cash, now with Bradford Edwards & Varlack? Interestingly, Cash joined a newly-formed firm — like Hecht Partners, founded and run by ex-Pierce Bainbridge attorneys — where Denver G. Edwards is a named-partner. While at Pierce Bainbridge, Edwards lied under oath to try to shield allegations about Pierce Bainbridge from public view, about which Edwards himself said, “if true, would constitute criminal activity.”
Did John Pierce act alone?
In around $75 million worth of alleged transgressions?
With the firm having had a General Counsel (Carolynn K. Beck), a New York Office Managing Partner (David L. Hecht), a Los Angeles Office Managing Partner (Amman Khan), a Washington D.C. Office Managing Partner (Carolynn K. Beck), a United States Managing Partner (Douglas S. Curran) and a Chief Financial Officer (Kevin Cash)?
With around 10 parties having sued the firm?
Including vendors for alleged invoices dating back to 2018?
With allegations about potential financial fraud at the firm very public since May 2019?
With a group of well over 10 partners who started at the firm before around 40 other attorneys and stayed at the firm after those around 40 other attorneys had quit?
Is it credible that John Pierce was a lone wolf?
Will Pierce, or any of those in his orbit, eventually face consequences for a cavalcade of documented misconduct?
In the meantime, John Pierce keeps it moving, seemingly not a care in the world about owing tens of millions, no-showing hearings, claiming a “new” firm has “no debt,” chalking documented transgressions up to “fake news,” thumbing his nose at law enforcement, publicly threatening frivolous litigation, harassing law-abiding citizens, and continuing to solicit money from the general public.
Pierce’s ex-client and “close friend” Rudy Giuliani has made a mockery of the legal profession.
Why is John Pierce being permitted to do the same?
Where is the line?