You may remember Gene Cauley, the Little Rock lawyer and real estate investor who is being investigated by federal prosecutors after withholding around $9.3 million, the last installment of a settlement payment, from victims of a class-action lawsuit. Well, now Cauley is suing his former law partners (the law firm formerly known as Cauley Bowman Carney and Williams), and their attorneys, for interference with a contractual relationship, breach of contract, and unlawful taking of property. How much is Cauley asking in damages? $10 million, plus costs and attorney fees. According to the filing in Pulaski County Circuit Court, Cauley says his former partners refuse to give him access to legal pleadings and filings in which he has a financial interest. He also charges that he is being denied fees owed to him.
In a federal court hearing last week, Cauley's attorney told U.S. District Judge Jed Rakoff that giving any details regarding the missing money would incriminate his client. According to an article in Arkansas Business, the judge replied.
"It appears not unlikely from the little information available to me that Mr. Cauley may have committed a crime or several crimes, that he may have committed disbarrable conduct in one or many ways."
Cauley's case was assigned to 5th Division Circuit Judge Willard Proctor. Corruption, meet corruption.