08-03-21 countrywide - judge bohm texas march 6-08 opinion

Case 05-90374 Document 248 Filed in TXSB on 03/05/2008 Page 1 of 40

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION

MEMORANDUM OPINION ON SHOW CAUSE ORDERS OF
FEBRUARY 12. 2007 AND MAY 18. 2007

I. Introduction
The matter before this Court began with a routine motion to lift stay, but has spiraled into a lengthy ordeal which has cost the parties substantial time, attorneys' fees, and costs. Over one year ago, on February 6,2007, the Court sought a simple answer to a simple question-why was a motion to lift stay being withdrawn? The movant's attorney, rather than answer the question truthfully by admitting that the motion was based upon an incorrect payment history, attempted to conceal the truth from the court - that the motion should have never been filed. This rather narrow issue, precipitated an expansive proceeding. During several hearings over the past year, the court received evidence on a wide range of misconduct beyond this initial misrepresentation.

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Their collective conduct caused this Court to issue two Show Cause Orders. This Memorandum Opinion discusses how their actions in the case at bar have shown a disregard for the professional and ethical obligations of the legal profession and judicial system. 1