By Paul Gable
An accounting for expense funds in the Southern Holdings case provided Sep. 15, 2011, to James Spencer, former CEO of Southern Holdings, Inc., does not conform to S.C. reporting requirements for attorney trust funds.
The accounting, which, reportedly, comes from trust account records of attorney John Rakowsky, was provided to Spencer by attorney Stephanie Weissenstein of the Desa, Ballard, Weissenstein Law Firm. Weissenstein is representing Rakowsky in an interpleader action of the remaining Southern Holdings expense funds held in trust by Rakowsky. Rakowsky represented Spencer and his co-plaintiffs in the Southern Holdings case,
Under deposits, an amount of $67,500 is shown with no identification of who provided the funds or when they were provided. Rule 417 of the S.C. Judicial Department and Rule 1.15 of the South Carolina Rules of Professional Conduct require the date, source and description of each amount deposited to be included in the records.
Additionally, disbursements of various amounts are identified only by a name or purpose for each disbursement amount. The above referenced S.C. rules require the date, payee and purpose of each disbursement.
According to records of the Southern Holdings plaintiffs, three firms, LawMax, Lit Funding and Resolution Settlement Corporation, provided funds for expenses of the plaintiffs in the Southern Holdings case. The funds provided, according to these records, total considerably more than the $67,500 shown in Rakowsky’s records.
Rakowsky acknowledged funds from LawMax and Lit Funding during a Sep. 15, 2011, court hearing on the interpleader case. He has not acknowledged, on the record, receiving any funds from Resolutions Settlement Corp.
However, Bruce Benson, CEO of RSC, sent a notarized, certified letter dated over one year earlier (July 10, 2010) to Weissenstein, Spencer and the court requesting an accounting of the RSC provided funds.
During a July 25, 2011, hearing on the interpleader case, Judge William Seals, of the S.C. 5th Judicial Circuit, quashed a subpoena prepared by Spencer requesting all records with regards to the Southern Holdings expense funds held in trust by Rakowsky. Seals signed an order, prepared by Weissenstein, calling the funds held in trust “privileged financial records” of Rakowsky.
It is unclear why a S.C. circuit court judge would rule funds held in trust for expenses incurred in litigating a case to be privileged financial records of an attorney, rather than require a full accounting of those funds, when requested, as required by law.
It is unclear why the limited accounting ultimately provided to Spencer does not conform to the requirements of S.C. rules cited above
It is unclear why Benson’s request for an accounting of the funds provided by RSC has been ignored. Third parties with interest in funds held in trust have a right to request an accounting of those funds according to the S.C. rules cited above.
It is especially unclear why the $67,500 listed as a deposit does not match the total amount of funds provided by LawMax, Lit Funding and Resolutions Settlement Corp.
Why has the S.C. circuit court system not required sworn Officers of the Court to abide by the law?
First of all, lets get everything perfectly clear. Judge William Seals,of the 5th Judicial Circuit, has preformed like a genuine “dick-head”. Why do I state this fact you ask? The Resolution Settlements Corp. did not have a large chuck of money just laying around. It took investors like me to supply the money that is at question here. It is my money that is missing in action. Lets be even more clear. The crooked attorney, the low life bum himself, John “the crook” Rakowsky took my money and wont even acknowledge it. There is something called common Courtesy. The statues of law states that if you take someones money–you should at least let them know how you squandered it away. Attorneys are exceptionally good at taking large chunks of money and making them disappear. When Judge Bill Seals ruled that his legal crony, John “the crook” Rakowsy, did not have to follow the rules and is free to just “screw” his clients, all legal creditability went right out the window. If you walk up to a stranger and blow their head off, Old Wild Bill “I do not have to follow the law” Seals could easily rule that the guilty can get of jail free and the arrest warrant should be squashed. In some states the rules of the land are to be followed. Wild Bill Seals is beyond normal comprehension. Keep it up Judge Seals–make us all proud of are corrupt judicial system.
I have been asking for records since July 2007 and John Rakowsky has refused to produce them. Even I can see the corruption through my thick glasses.
“Dick-Head” is an understatement!! However, it is standard with a sheepskin law degree in this state.