Musical Law Firms? A Curious Debt-Tune Played by the Lawyer for Kyle Rittenhouse
Links and screenshots of lawsuits, lawsuits and more lawsuits, as well as a $3,990,772.95 money judgment against John M. Pierce Enterprises and related entities, included in a new must-read “Money Timeline.”
Amid widespread exposure of concerning financial and other issues, John M. Pierce stepped down from the “#Fightback Foundation;” an outfit raising donations to combat the “radical left,” as well as for the defense of Kyle Rittenhouse. While Pierce stated he has stepped away, there’s been no indication that his firm is not permitted to receive funds from donations; indeed, this change seems primarily a public relations move. Pierce also declared that Pierce Bainbridge P.C. has “zero debt.” Given the severe financial issues surrounding Pierce and related entities, this statement piqued interest. In the spirit of “Information is Knowledge, Knowledge is Power,” below are materials to consider when forming opinions about John Pierce and debt, as well as in forming an opinion on what Pierce’s agenda may be with the #Fightback Foundation and Kyle Rittenhouse.
The Money Timeline kicks off around the time that Rudy Giuliani hired Pierce Bainbridge, which was shortly after Rudy pocket dialed a reporter and said: “we need some money.” Before jumping in, some brief helpful background.
The Reported $70 Million Debt
The financial picture of Piece Bainbridge Beck Price & Hecht LLP is not pretty. The firm’s reported debt earlier this year was approximately $70,000,000.00.
The Dire Personal Financial Picture Painted by Pierce
Pierce’s personal finances are also concerning. Pierce’s own “Income and Expense Declaration” dated November 7, 2019 (the day after Rudy Giuliani came aboard) is noteworthy. According to the declaration:
- Pierce owed over $1 million in taxes.
- Pierce owed his former spouse’s mother $27,000.
- Pierce owed Citibank $90,000.
- Pierce had no investment income.
- Pierce’s assets and cash deposit accounts contained $10,750.
- Pierce fair market value of real estate and personal property was negative.
- Pierce’s monthly expenses were $49,581.
Pierce Bainbridge Beck Price & Hecht LLP
At the center of the financial tsunami is Pierce Bainbridge Beck Price & Hecht LLP. The firm was founded in January 2017 and by March 2018 was already on this third name — the prior two were Pierce Sergenian and Pierce Burns. The leaders of Pierce Bainbridge Beck Price & Hecht LLP and their new firms:
- John M. Pierce (Pierce Bainbridge P.C.)
- James D. Bainbridge (Bainbridge Law APC)
- Carolynn K. Beck (Goldstein & McClintock LLLP)
- Maxim Price (Hecht Partners LLP)
- David L. Hecht (Hecht Partners LLP)
Under this leadership, the firm suffered a “dramatic disintegration.” It appears the wheels started to come off in October 2019, which is where we’ll kick off the timeline.
The Money Timeline
- October 16, 2019. Rudy Giuliani pocket dials a reporter and says “we need some money.”
- November 6, 2019. Rudy Giuliani tweets that he’s hired Pierce Bainbridge Beck Price & Hecht LLP for Ukraine.
- November 7, 2019. John M. Pierce serves an Income and Expense Declaration which appears to show he is broke.
- November 14, 2019. Litigation funder Virage Capital Management reportedly provides millions in funding to Pierce Bainbridge Beck Price & Hecht LLP. Virage Capital first funded the firm in April 2019; and it has been reported is owed roughly $65,000,000; Virage has said that Pierce Bainbridge defaulted on the debt.
- November 18, 2019. John Pierce and related entities enter into a cash advance agreement with Slate Advance LLC, whereby $500,000 in upfront cash is provided in exchange for $749,500 in future receivables. Slate Advance eventually sues for failure to fulfill payment obligations. (Note: Article updated on September 19, 2020 to include the dollar amount of future firm receivables.)
- December 9, 2019. John Pierce and related entities enter into a cash advance agreement with West Coast Business Capital LLC, whereby $260,000 in upfront cash is provided in exchange for $387,400 in future receivables. West Coast Business eventually sues for failure to fulfill payment obligations.
- Date Not Available. John Pierce and related entities enter into a cash advance agreement with Creative Capital Funding LLC, whereby hundreds of thousands of dollars in upfront cash is provided in exchange for future receivables. Creative Capital Funding LLC eventually sues for failure to fulfill payment obligations.
- February 18, 2020. John Pierce and related entities allegedly stop making repayments on the West Coast Business cash advance. A remittance or repayment sheet included with the West Coast Business complaint provides details. (The screenshot below indicates on the last line that the repayment withdrawals stopped on February 18, 2020; this is an important date given the next entry for February 19, 2020)
- February 19, 2020. John M. Pierce Enterprises and related entities enter into a cash advance agreement with Karish Kapital LLC, whereby $2,500,000 in upfront cash is provided in exchange for future receivables. The agreement called for “Daily” repayments of $37,500 until $3,750,000 was paid. Despite this obligation, several months later not a dime had been paid; the New York State Supreme Court entered a $3,990,772.95 money judgment on July 22, 2020 against John M. Pierce Enterprises and related entities. (Screenshots illustrating the terms of the Agreement and of the Money Judgement are below.)
- March 10, 2020. The New York Law Journal reports: “John Pierce Is on Leave Amid Financing Questions.” Pierce denies this and says he was in rehab for “substance abuse and other addictive behaviors.”
- March 20, 2020. David Hecht, a name partner at Pierce Bainbridge Beck Price & Hecht LLP, forms a new firm Hecht Partners LLP. The firm has six partners, all of the partners — David Hecht, Max Price, Kathy Lee Boyd, Andrew “Andy” Lorin, Conor McDonough and Janine Cohen, are former Pierce Bainbridge Beck Price & Hecht LLP partners.
- March 20, 2020. The same day as Hecht Partners formed, Jim Bainbridge, a name partner at Pierce Bainbridge Beck Price & Hecht LLP, files articles of incorporation for Bainbridge Law APC. (Bainbridge was accused by the Federal Trade Commission of leading an $80,000,000 scheme in the 1990's).
- May 20, 2020. Pierce Bainbridge P.C. is formed; the filed articles of incorporation are below.
- May 21, 2020. The very next day after Pierce Bainbridge P.C. is formed, a UCC filing is made with Hecht Partners as the debtor. The filing is essentially identical to a UCC filing between Virage Capital and Pierce Bainbridge, which suggests Virage Capital has now funded Hecht Partners.
- June 24, 2020. Cash advance lender Slate Advance LLC requests the court freeze bank accounts related to Pierce Bainbridge Beck Price & Hecht LLP, Pierce Burns LLP, John M Pierce Enterprises, LLC, JMP Enterprises, or John M. Pierce, up to the amount of $286,411.25. (The request is subsequently withdrawn after Virage Capital says it is first in line to be repaid, since the same collateral was pledged to both lenders.)
- July 1, 2020. A homeowner sues John Pierce and his client for breach of a residential lease agreement, including a failure to fulfill rent payment obligations. Pierce put the client up in a $1.3 million home for 2 years and paid an alleged monthly rent of $6,600.
- August 18, 2020. A legal vendor named Transperfect Legal Solutions sues Pierce Bainbridge Beck Price & Hecht LLP. The complaint says Transperfect had submitted a slew of invoices for work dating back to November 2018, which were never paid and $135,000 plus interest is owed.
August 18, 2020. A legal vendor named Kiski Legal LLC files a complaint against Pierce Bainbridge P.C. in Arkansas for failure to pay for approximately $8,300 worth of legal services.
August 25, 2020. The homeowners who filed the lawsuit against John Pierce and his client on July 1, 2020, file a request to enter a default against both defendants for failure to respond to the complaint.
August 27, 2020. Just two days after the request for the default, and all of the items set forth above, John Pierce appears to actively seek out representation of Kyle Rittenhouse.
John Pierce’s mess of personal and professional finances has been exposed internationally.
John Pierce owes money all over town.
John Pierce says he stepped down from the #Fightback Foundation; but donations can still flow to John Pierce’s firm and likely “affiliated” firms like Hecht Partners.
John Pierce is publicly declaring with pride that his new law firm, Pierce Bainbridge P.C., the fourth name of a law firm Pierce has led in less than four years, purportedly has “no debt.”
In light of the information above, consider where you come out:
Is John Pierce in this for Kyle Rittenhouse?
Is John Pierce in this for John Pierce?
Is John Pierce in this for something else?
“Information is knowledge, knowledge is power.” It’s a strong saying, another strong one:
“A fool and his money are soon parted.”