This disciplinary matter is before the Court on the Report and Recommendation of the Review Panel in which it specifically incorporated and adopted the findings of fact and conclusions of law of the special master, Regina M. Quick, who found that Respondent Paul Troy Wright State Bar No. 778585 violated Rules 3.3 and 8.4 of the Georgia Rules of Professional Conduct. See Bar Rule 4-102 d. The Review Panel stated that Wright failed to file specific exceptions to the special master’s report and therefore, there were no issues before the Review Panel. Accordingly, it accepted the special master’s report and recommendation that Wright receive a six-month suspension from the practice of law, and a public reprimand.
The State Bar alleged that Wright made false statements to the Cobb County Superior Court, the United States Bankruptcy Court for the Northern District of Georgia and the Georgia Court of Appeals in connection with his representation of Home Equity Loan Products, Inc. “HELP” as a debtor in a Chapter 7 bankruptcy case, and its board member, Huffman, in a pending action in Cobb Superior Court. HELP and Huffman became clients of Wright’s firm with his partner, Neil Wilkinson. At a hearing in bankruptcy court on February 14, 2006, a few days after Wright was hired, the court considered a motion to dismiss filed by the receiver for HELP appointed by the superior court. The bankruptcy court was seeking specific information that a corporate resolution for the bankruptcy filing was made at a duly called, duly noticed meeting of HELP’s Board of Directors. Wright told the court that there was such a resolution and that he had seen it, although it is undisputed that at that time Wright had not spoken with Ronald Baker, the other alleged Board member, nor reviewed any corporate documents. The hearing was continued, and the court instructed the parties to obtain and present the required evidence. When the hearing re-convened a resolution was filed that purported to authorize the bankruptcy filing on January 12, 2006, having been signed in two counterparts, first by Huffman, then by the attorney-in-fact for Baker, Michael Hirsch. Evidence was adduced at the hearing, however, that contradicted the resolution, including by-laws establishing a three-member Board and no amendment to the by-laws, so the evidence was undisputed that the Chapter 7 filing was made without the required authority of the Board of Directors of HELP. The bankruptcy court dismissed the petition. The superior court held Huffman and Wilkinson in contempt. On appeal, the Court of Appeals affirmed, see Huffman v. Armenia, 284 Ga. App. 822 645 SE2d 23 2007, and on motion for reconsideration the Court of Appeals also held Wright in contempt, see Huffman v. Armenia, A06A2105 April 13, 2007. The Court of Appeals found that Wright and Wilkinson made false statements in their appellate briefs when they asserted that HELP’s Board of Directors had unanimously authorized Huffman to file the bankruptcy petition before it was filed, and that HELP successfully opposed motions to dismiss the bankruptcy petition and, in fact, cured the non-fatal defects in the petition, neither of which statements were supported by the record. The Court of Appeals directed that a copy of the contempt order be sent to the State Bar. As a result, the State Bar filed this disciplinary action.
