Milwaukee bankruptcy attorney facing misconduct charges

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A Milwaukee bankruptcy attorney is facing eight charges for alleged misconduct in his handling of four bankruptcy cases between 2008 and 2010, according to a Wisconsin Supreme Court filing.

Paul Strouse, who was admitted into the Wisconsin State Bar in 1991, lost a piece of fuel monitoring equipment he was holding for a client who owned a gas station that was involved in bankruptcy and foreclosure proceedings, according to a complaint.

He also did not properly inform two clients of the fees owed to him for legal representation, and also did not respond to requests for information from another client, according to the complaint.

The Office of Lawyer Regulation filed the charges against Strouse on July 22. They are requesting that Strouse be suspended for 60 days.

Reached Monday afternoon, Strouse said he had not yet seen the OLR’s complaint.

According to the filing, Strouse lost a piece of fuel monitoring equipment his client gave him while he represented the client in foreclosure and bankruptcy proceedings.

When the gas station’s receiver went to Strouse’s office to get the equipment, Strouse told him it had “been stolen or ‘thrown out’ by the cleaning crew,” according to the complaint. Strouse then said he notified his landlord and would file a claim through his insurance.

While the landlord denied any wrongdoing on behalf of the cleaning crew, Judge William Pocan also confirmed the sale of his client’s gas station. When a representative of the bank involved in the foreclosure and sale requested that Strouse pay for the missing equipment, Strouse didn’t respond, according to the complaint.

The complaint also says Strouse did not adequately explain the costs for representation for a separate client’s bankruptcy case, and also increased that client’s fees without that client’s consent. It also says he didn’t explain his fees to another person he represented.

Finally, Strouse failed to talk to yet another client about their representation in bankruptcy court, according to the complaint. When that client asked for information, Strouse didn’t respond.

This is the third time the OLR has brought charges against Strouse. He was publicly reprimanded in January 2010 and June 2011 for a variety of misconduct violations, including repeatedly engaging in conduct involving dishonesty, fraud, deceit or misrepresentation by intentionally creating a false bankruptcy discharge order.

According to court filings, Strouse has had years of money problems and disputes go before the court. Notably, he was ordered in 2011 to pay thousands to WCGV-TV, which operates My 24 Milwaukee, for failing to honor and pay for a year-long commercial contract in 2009.