Benton Attorney Pleads Guilty to Bankruptcy Fraud
MONROE, LA—United States Attorney Stephanie A. Finley announced today that a Benton attorney pleaded guilty to collecting filing fees from clients without informing the bankruptcy court.
Glay H. Collier II, 53, of Benton, La., entered a conditional guilty plea to one count of bankruptcy fraud before U.S. Magistrate Judge Karen L. Hayes. The plea will become final when accepted by U.S. District Judge Robert G. James. According to evidence presented at the guilty plea, Collier filed records into the bankruptcy court stating that he would accept “No Look” fees as payment for his services. The “No Look” fee caps attorney’s fees in bankruptcy proceedings to $2,800. In excess of that limit, Collier charged up to $281 in filing fees to some clients, which he did not disclose to the court. Between March 2010 and November 2013, Collier filed 983 Chapter 13 bankruptcy cases in Monroe, and during the same time period, he filed 2,160 Chapter 13 bankruptcy cases in Shreveport. In approximately 479 of these cases, Collier fraudulently collected and attempted to collect filing fees.
Collier faces up to five years in prison, three years’ supervised release and a $250,000 fine. A sentencing date of March 1, 2016 was set.
The FBI and the U.S. Trustee’s Office, Region 5, conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan is prosecuting the case.