Texas attorney Lloyd Ward, as part of Lloyd Ward & Associates, has beed sued by the State Bar of Texas, Commission for Lawyer Discipline over his alleged actions concerning debt settlement activities related to Debt RX USA and Silverleaf Debt Solutions.
The complaint, filed on May 23, 2012, alleges that in “June 2008, Michael Miles created Debt RX USA, LLC to operate as a debt settlement and negotiation company. On March 19, 2009, Miles hired Lloyd Ward to represent Debt RX as legal counsel.
Lloyd Ward subsequently prepared a Management Agreement between Lloyd Ward & Associates, PC and Miles which provided for Debt RX to manage the collection division of Lloyd Ward & Associates. Debt RX as manager was to receive 90 percent of the monthly net profits from this division. Lloyd Ward was to receive the remaining 10 percent of the net profits. The funds came from clients paying for debt settlement services.
In November 2009, Miles created Silverleaf Debt Solutions, LLC. Silverleaf and Lloyd Ward did not have a written agreement, but Lloyd Ward and Silverleaf did business together under the same terms as the agreement that Lloyd Ward had with Debt RX including the 90 percent / 10 percent fee split arrangement.
The 10 percent fee that Lloyd Ward received from both Debt RX and Silverleaf was for legal fees that Lloyd Ward incurred. When sending invoices for these legal services, Lloyd Ward addressed them to Debt RX and/or Miles-Silverleaf.
When entering into these agreements with Miles and both Debt RX and Silverleaf, Lloyd Ward failed to give them a reasonable opportunity to either seek the independent advice of counsel regarding the agreements or obtain their written consent. In addition, Lloyd Ward failed to furnish Miles and both Debt RX and Silverleaf with a conflict of interest waiver for signature.
Various lawsuits were subsequently filed against Lloyd Ward, Miles, Debt RX and Silverleaf. Lloyd Ward hired outside counsel to represent one or more parties without informing them of the lawsuit. In addition, the parties were not consulted regarding responsive pleadings that were filed including motions to dismiss.
Finally, Lloyd Ward misrepresented to Miles that there were tax issues involving Debt RX and Silverleaf. Lloyd Ward attempted to get Miles to sell Silverleaf stock to him to cure these alleged tax problems.” – Source
In the interest of disclosure, in October 2011 Lloyd Ward sued myself, my wife, this site and the Myvesta Foundation. The case is ongoing and there is nothing to report on that mater.
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