Chapter 4
Houston, Texas
It was early afternoon at the United Mercantile Bank Building in downtown Houston. The weekly board meeting was about to begin. Several hostesses were passing out coffee, cold drinks, and mineral water to the members who were milling around and making final preparations for the meeting. Suddenly the doors opened and MidSouth’s executive vice-president, Douglas Barnes, a trim, deliberate man in a grey suit, entered the room with an entourage of assistants. He took up a position near the head of the long conference table and waited stone-faced for the meeting to begin. Finally, the inside door opened and Frank Hill, the chairman of the board, walked in and sat at the head of the conference table.
"Good afternoon, ladies and gentlemen. Let's get down to business, shall we? Are there any corrections to the minutes of last week's meeting?” Hill looked around but nobody said a word. ”Hearing none, they are approved. . . . Mr. Barnes, I believe you are first on the agenda."
Hill sat and Barnes stood up to address the meeting. "Yes, sir. I’ve been in Dallas this last week to find out why bankruptcy filings in the Northern District are up thirteen percent in the last quarter."
"Yes, that's very disturbing. What did you find out?"
"Well, it seems there is a new attorney, Matt Coleman, who has launched a very effective marketing campaign to promote his bankruptcy practice. His wife is a marketing major and, along with a finance professor at SMU, has been helping him."
"What could they possibly be doing to cause bankruptcy filings to increase so much?"
"They're convincing people that they are the victims of a conspiracy by banks and financial institutions to enslave them economically and that the only way out is to file bankruptcy."
"You can't be serious? How ridiculous," the chairman said.
"Obviously, Mr. Chairman, but a lot of people are taking him seriously, and not only is Mr. Coleman doing a booming business, but everyone in Dallas is benefitting from his campaign."
"So, Mr. Barnes, is this just an aberration or do we have a problem?”
"Well, Mr. Coleman is starting to get some press and attorneys around the state are beginning to take notice. Because we have been marketing heavily in the Dallas Metroplex area, we are getting hit harder than anyone. So, yes, I'm afraid we do have a problem. Our default rate is already at 15% and rising at an alarming rate. If it gets over 20%, we’ll be in serious trouble."
"What course of action do you suggest?"
"The State Bar of Texas is scratching its head on how to deal with the situation. I think we should put some heat on them to put a lid on Mr. Coleman."
"Good idea. Do you think that will work?"
"Hopefully, but if they fail, then we need to have an alternative plan."
"Of course, what did you have in mind?"
"Well, I can foresee several potential problems for Mr. Coleman in processing so many bankruptcies. With so many people filing just to free themselves from this financial bondage, I would imagine a few people might fudge a little and fail to disclose an asset or two, don't you think?"
"Quite possibly. How do we monitor that situation to make sure it doesn't happen?"
"We've got someone at the bankruptcy trustee's office checking Mr. Coleman's filings very carefully and they'll keep in close contact with the FBI and report anything suspicious."
"Excellent. What if nothing turns up?"
"Well, since Mr. Coleman is making so much money, he might have trouble keeping track of all of it. In fact, I wouldn't be surprised if he might forget to report all his income on his income tax return. After all, someone who holds financial institutions in such contempt obviously wouldn't like the government much either. I think the IRS should be alerted to keep an eye on him also."
"I presume you can handle that for us."
"Consider it done, sir."
"Thank you. Now, what’s next on the agenda?"
At the conclusion of the meeting, Douglas Barnes and his entourage left immediately for the airport to return to Dallas. When they arrived, they went to the Adolphus Hotel, where they had set up a temporary office in the name of American Creditor’s Alliance. Barnes was going through his messages when his secretary announced Hans Schultz was there to see him. Schultz was an ex-Marine turned private eye. He had been court-martialed and dishonorably discharged for disobeying his commanding officer in Desert Storm. Barnes told her to show him in.
"Hans, how are you?" he asked, as he stood and extended his hand.
"Just fine, sir," Schultz said as they shook hands.
"Thanks for getting here so quickly."
"No problem, what can I do for you?"
"We've got a little trouble here in Dallas. A young attorney has started a campaign against banks and financial institutions alleging a conspiracy to economically enslave the American people."
"That's very perceptive for an attorney."
"True, unfortunately a lot of people are starting to listen to him and, as a result, local bankruptcy filings are way up."
"Huh. So what would you like me to do, send him on a long vacation?"
"No, that wouldn't be wise. He's too much in the public's eye right now. I just need you to follow him around and keep an eye on him. We need to know where he is and what he’s doing at all times. If he happens to do something compromising, make sure the press hears about it."
"Sure, I understand. No problem."
"We have to bring this guy down hard. And it's got to be done in public to set an example. We don't want to go to all the trouble to get rid of him and then have other attorneys turn around and adopt his marketing plan. We've got to nip this thing in the bud before it becomes a serious problem."
"Don't worry. I'll take care of my end."
"Good. Report back to me every few days, okay?"
"I will," Schultz said.
After Schultz had left, Barnes pressed his intercom button and told his secretary to get Peter Robinson on the line. Robinson was general counsel to the State Bar of Texas.
"Robinson."
"Mr. Robinson, this is Douglas Barnes from the American Creditor’s Alliance."
"Yes, what can I do for you?"
"Our organization represents hundreds of financial institutions around the country and, frankly, our members are outraged at the publicity campaign of that young upstart attorney, Matthew Coleman."
"Oh, yes. I can imagine."
"I've been asked to find out what the State Bar intends to do about this irresponsible member of the bar. Surely you can't let him get away with such a vicious attack on our financial institutions."
"Well, we're looking into the situation right now. Technically he’s not seriously breaching any ethical duties."
"So what are you going to do?"
"Well, we don't know yet. We're studying the matter."
"Do you realize bankruptcy filings are up 30 percent in the Northern District? You know what that means to the members of our institutions in dollars and cents. This ad campaign is illegal, unethical, and totally irresponsible. The State Bar is supposed to police its member’s advertising and make sure it is professional and not misleading. We demand that something be done, and done quickly."
"I totally understand the concern of your members. The State Bar will do something, but it will take a little time to study options and come up with the best strategy. There are a lot of complicated legal issues here."
"I understand, but our members are losing thousands of dollars a day and they can't wait indefinitely. We'll be forced to take action ourselves if the State Bar doesn't act soon. I know there's been a movement to take control of the bar away from the members and set up a state agency to oversee it. If this isn't resolved soon, our organization may have to throw its support behind that movement."
"That won't be necessary. Just give us a few more days and something will be done."
"Good. Would you give me a call just as soon as a course of action is adopted?"
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br /> "Yes, of course."
"All right then. I'll be waiting to hear from you."
Plastic Gods, A Rich Coleman Novel Vol 2 Page 6