Bankruptcy Fraud: Bold-Faced Lies to the Federal Court
Dickinson Wright's Lies Started With Opening Argument and Never Stopped
After The Secret Meeting with the Receiver at Dickinson’s offices (see Collusion with McKinley page), Dickinson CEO, Michael Hammer, told a Series of Major Lies to Federal Judge Thomas Tucker in the U.S. Bankruptcy Court
Hearing Transcript
Hammer said, “There are 30 claims of lien filed in this case totaling 9.4 million dollars"
The True Facts & Figures
In actuality, there were approximately 8 liens totaling $2.15 million. See amounts in blue on Dickinson’s Exhibit F to see the breakdown of the $7.5 Million Overstatement!
The borrower testified, “At the end of the day these mechanic’s liens, you know, will be $2,144,000.” Canyon’s borrower was able to predict the total very accurately as the actual amount later paid was $2,158,306.
Yet, Michael Hammer Repeated His $7.5 Million Overstatement Many Times to Get the Bankruptcy Dismissed. He even said repeatedly the Borrower "stiffed" the lien claimants for this money!
Michael Hammer's Many Lies Got The Bankruptcy Dismissed
Due to Dickinson Wright's Lawyers Colluding with Canyon Partners and The Receiver, They Successfully Coordinated Their Lies to the U.S. Bankruptcy Court to Prevent Canyon's Borrower from Regaining Control of Its $75 million Property
Dickinson Wright Was Paid Millions to Pull Off the Bankruptcy Dismissal and Foreclosure of the George Property
These are only a fraction of the checks paid to Dickinson Wright, which were added to the cost to complete the project.
Fraud Proof: Dickinson Wright Lawyers Contradict Each Other
7 Months After Getting the Bankruptcy Dismissed, Hammer’s Partner, Ben Dolan, Emailed The Truth about the Quandel lien (which was $6 million of the $9.7 million on their Exhibit F above.
Dolan wrote, “As we believe Quandel’s lien is overstated substantially, we plan to file a motion – potentially even yet today – to require Quandel to amend its lien or for an order discharging its lien entirely.”
So after Michael Hammer told the bankruptcy court that the Quandel lien was $5,968,282 (see Exhibit F above), Hammer's partner, Dolan, said it was overstated substantially and should be discharged entirely! Later Canyon agreed to pay $600,000 to Quandel instead of the nearly $6 Million that Hammer told the bankruptcy court.
Due to Dickinson Wright's Lawyers Colluding with the Canyon Partners Hedge Fund and The Receiver, They Successfully Coordinated Their Lies to Judge Thomas Tucker in the U.S. Bankruptcy Court to Prevent the Borrower from Regaining Control of Its $75 million Property
More Lies By Michael Hammer: Hidden Legal Fees
Michael Hammer Misrepresented to the Judge That Its Legal Fees Were Excluded From Canyon's Purported Loan Balance
After telling the Bankruptcy Court that Dickinson Wright's Attorney Fees Were not Included In the Loan Balance, They Admitted the Truth Three Months Later
On September 13, 2017, Dickinson Wright’s counsel, Michael Hammer, lied to the bankruptcy court by denying that any legal fees were included in their client's July 31, 2017 loan balances, when in truth and in fact, over a million dollars of legal fees were included. Michael Hammer falsely stated, “It’s important to know the Court hasn’t decided that any attorney fees can actually be added to the debt. That issue is still up, and the Court has not decided that.” Later, Canyon admitted in Requests to Admit on January 17, 2018 that there were attorney fees embedded within the principal balance of the loan. This lie materially overstated the debt further, and was crucial to the bankruptcy court’s decision to dismiss the reorganization.