West Virginia Record -

W.Va. among 49 states to sign on to mortgage deal

Thu, 09 Feb 2012 15:00:00 CST

McGraw

CHARLESTON - Federal officials and 49 state attorneys general, including West Virginia's Darrell McGraw, have reached a $25 billion agreement with the nation's five largest mortgage servicers.

The U.S. Department of Justice made the announcement Thursday morning.

As part of the multistate deal, West Virginia will get more than $33 million in assistance for struggling homeowners, McGraw said in a statement Thursday.

Of that, an immediate estimated payment of $2,000 will go to each state homeowner who lost their home to foreclosure between Jan. 1, 2008 and Dec. 31, 2011.

More than $18 million will go to loan modifications and benefits to state homeowners currently in default or foreclosure.

More than $5 million will go to free refinancing for "underwater" but current state homeowners.

Another $6 million will go to foreclosure and mortgage assistance and prevention programs in West Virginia.

Talks between the attorneys general, federal officials and the five banks -- Wells Fargo & Co., JPMorgan Chase & Co., Citigroup Inc., Ally Financial Inc. and Bank of America Corp. -- dragged on for months before a deal was struck this week.

The probe, which began in October 2010 with inquiries into so-called "robosigning" practices, broadened into identifying and addressing additional alleged improper foreclosure practices.

McGraw noted that the multistate settlement -- which only covers those mortgages held by the five banks, not Fannie Mae or Freddie Mac -- is not a "get out of jail free" card for the banks.

The agreement institutes new protections for homeowners and nationwide reforms to mortgage servicing standards, he said.

It also gives state attorneys general oversight of the five banks for the first time -- something, McGraw noted, no court could award.

More importantly, it leaves the door open for tough legal remedies for mortgage-related misconduct, he said.

"Meaningful settlements like this that serve a measure of justice are important to us all," he said Thursday.

The settlement is one of the largest civil settlements ever obtained by the nation's attorneys general -- second only to their 1998 settlement with the tobacco companies.

The final agreement, through a consent judgment, will be filed in the U.S. District Court for the District of Columbia, to be overseen by an independent monitor with the backing of a federal court order.

WVU files motion for restraining order, injunction against t-shirt maker

Thu, 09 Feb 2012 12:31:00 CST

CLARKSBURG - West Virginia University is asking a federal court for a temporary restraining order and preliminary injunction to stop the sale and production of a Morgantown t-shirt maker's "infringing merchandise."

The three-page motion was filed in the U.S. District Court for the Northern District of West Virginia Thursday.

In a news release, the university said it has had "numerous discussions" with defendants MivaMan LLC, JFord Inc. and Kevin Ford, and has tried -- unsuccessfully -- to settle the matter.

"It is WVU's responsibility to protect the reputation, integrity, image and goodwill of the university through the proper use of our federally-registered marks," said Becky Lofstead, assistant vice president for university communications.

"We also have a responsibility to our alumni, friends, donors, students, parents and fans -- all those who hold this university in such high regard."

Lofstead said hundreds of licensed vendors correctly use WVU's "identifiers" on merchandise that is sold to the public -- but the defendants are not one of them.

The company, which also operates the website www.fastees.com, is not a licensed WVU vendor and has "blatantly and intentionally" infringed on a variety of university marks, she said.

"This is not simply a case of whether or not someone can use the name of the state. When used in reference to WVU in the way it is being done, this business owner is clearly attempting to affiliate his products with West Virginia University to trade off our goodwill and strong reputation for his profit," Lofstead said.

"Rarely does a business owner defy the law when they learn they've used the WVU marks inappropriately. It's usually a matter of bringing it to their attention and the practice stops. In this case, the business owner is clearly and knowingly violating the law."

WVU is suing the defendants for trademark infringement, trademark dilution, cyberpiracy and unfair competition under the Federal Trademark Act of 1946, trademark and anti-dilution laws in West Virginia and unfair competition laws in the state.

In particular, the university accuses the defendants of producing and selling shirts, coolers and temporary tattoos that say the following:

* West F***** Virginia;

* West By God Virginia;

* Let's Go! Drink some bEERS!;

* Best F***** Virginia;

* Gold F***** Rush;

* Blood Sweat and Eers;

* West Virginia Girls Do It In The Mud;

* I am 99 Percent West Virginia;

* I Only Flash West Virginia Fans;

* I Only Sleep With West Virginia Fans;

* The Incredible EERS; and

* VERY WASTED.

Other shirts sold by the defendants include an image of the state of West Virginia and a hand raising its middle finger interposed between the words "West" and "Virginia"; another with "West F***** Virginia" and a yellow fist in the middle; and another with the words "Don't Curse" on the front and on the back "West F***** Virginia."

Owner Ford called the whole situation "ridiculous."

"We put 'West By God Virginia' on a t-shirt and they seem to think that's infringing on their standards," he said in an interview Thursday.

"They don't have a trademark on the words 'West Virginia.' They can't trademark a geographic location."

Ford said he hopes a judge, too, will see that the case is without merit -- or else he might have to close up shop.

"I can't even walk into court and plead my case without an attorney. They won't let me," he said.

"And here I am holding a $3,000-plus bill from my attorney to work on a settlement that we couldn't reach."

He said WVU's proposed settlement would have allowed him to use the words "West Virginia" in certain situations but no blue and gold colors, and would have put strict stipulations on font sizes, among other things.

"It was just ridiculous," Ford said. "We only have a couple of designs in my whole store with 'West Virginia' on it. It's a very small percentage of what we're trying to sell here."

As for the university's temporary restraining order and injunction, Ford said he would do his best to fight it.

"There's not one person I've met, talked to -- on the Internet or phone, attorneys and lawyers -- all of them have said (WVU) can't get away with this," he said.

Former WVU player trying to 'Pittsnogle' porn lawyer in court

Thu, 09 Feb 2012 12:30:00 CST

Pittsnogle
(picture via msnsportsnet.com)

MARTINSBURG -� Kevin Pittsnogle �- the tattooed, 3-point-shooting 7-footer whose last name became a verb during his time on the West Virginia University basketball team �- says an attorney he hired for a custody battle took his money and ran.

In a lawsuit filed Jan. 23 in Berkeley Circuit Court, Pittsnogle alleges that he paid attorney Kenneth Ford, of Baltimore, a $1,000 flat fee to represent him in a paternity and custody matter. Ford had previously made a name for himself by filing copyright lawsuits on behalf of adult movie film studios.

Ford has been the subject of several official complaints and had his law license suspended at least five times by the state Bar, according to The Journal of Martinsburg. He was arraigned on Jan. 11 on charges of falsifying court orders.

Pittsnogle, 27, helped the Mountaineers reach the Elite 8 of the 2005 NCAA Tournament as a junior and the Sweet 16 of the 2006 tournament as a senior. He says after hiring Ford in June, he went months without hearing from him.

"When questioned by the Plaintiff regarding the status of the custody case, the defendant knowingly, intentionally and repeatedly lied to the plaintiff, indicating a case had been filed and a court date had been set," the complaint says.

It adds that no legal action was taken, and that Ford fabricated a court order pertaining to the custody case on which he forged the signatures of court officials.

Pittsnogle, who lives in his native Martinsburg, ranks seventh all-time in scoring at WVU with 1,708 points, second in 3-pointers made with 253, second in 3-point shooting percentage at 41.1 percent and seventh in games played with 128.

His name, tattoos and 3-point shooting gained Pittsnogle national recognition, eventually leading to the explosion of the phrase "You've been Pittsnogled." A Sports Illustrated article in 2006 was titled "Everybody's Been Pittsnogled!"

Ford, meanwhile, doesn't have as many positive press clippings. He reportedly filed more than 22,000 "John Doe" lawsuits in 2010, accusing individuals across the country of downloading adult films with titles like Teen Anal Nightmare 2 and Juicy White Anal Booty 4.

Pittsnogle is alleging that he lost the fee paid to Ford and incurred extra expenses by having to hire a new lawyer and file a civil lawsuit. Attorney Christopher Janelle is representing Pittsnogle in both.

Pittsnogle also alleged that he suffered mental and emotional distress, inconvenience and annoyance, loss of income and loss of time. He alleges breach of contract, negligence/malpractice and unjust enrichment. He seeks damages, interests and costs.

From the West Virginia Record: Reach John O'Brien by e-mail at jobrienwv@gmail.com.

Suit alleges indifference by Bluefield police led to man's jail death

Thu, 09 Feb 2012 09:45:00 CST

BLUEFIELD -� A Mercer County woman alleges the city of Bluefield is responsible for her son's death while he was incarcerated in the city's jail.

Wanda L. Yokosuk filed a two-count civil rights suit against the city Feb. 2 in U.S. District Court. In her complaint, Yokosuk, 50, a Bluefield resident, alleges her son's death in late 2010 could've been prevented if police monitored him while he was in jail instead of assuming he was passed out drunk.

According to the complaint, Stephen Z. Yokosuk passed out in his car in the parking lot of the Bluefield McDonald's around 4 p.m. on Nov. 18, 2010. About four hours later, an unidentified employee waived at a passing Bluefield police officer to alert him to Yokosuk's condition.

Instead of calling for medical assistance, Wanda alleges police arrested Stephen, and charged him with public intoxication. Shortly thereafter, he was processed and booked at the Bluefield police station despite remaining "in such a state that it was difficult to keep him awake."

After he was booked and processed, Stephen was placed in a jail cell "where he did not move or respond for the rest of the evening or the next morning." Though other inmates found him unresponsive, but breathing, Wanda alleges nobody at the jail checked on Stephen that night.

Sometime the morning of Nov. 19, inmates informed police that Stephen had not moved the entire night. According to the suit, the response by police was that Stephen was "'a drunk and just sleeping it off.'"

However, about two hours after breakfast was served, Stephen, 21, was declared dead. An autopsy later determined he died as a result of "blood clots in his lungs which travelled up from his legs all of which were caused by him being in a state where he did not move for several hours."

According to the suit, no alcohol was found in his system.

In her suit, Wanda alleges the city of Bluefield violated Stephen's civil rights through the "deliberate indifference" of police assigned jail duty by not checking on him following his incarceration. Also, she alleges they violated his Fourth and Fourteenth Amendment rights when they arrested him for public intoxication without verifying he was in fact intoxicated.

Along with unspecified damages, attorney fees and court costs, Yokosuk seeks a permanent injunction requiring the city of Bluefield to adopt better policies for training and supervision of its police officers. She is represented by Charleston attorneys J. Michael and Cynthia Ranson, George B. Morrone III and Charles R. "Rusty" Webb.

The case is assigned to Judge David A. Faber.

U.S. District Court for the Southern District of West Virginia, case number 12-cv-229

Reports: WVU, Big East settlement close to being done

Thu, 09 Feb 2012 08:30:00 CST

MORGANTOWN - West Virginia University and the Big East Conference are reportedly nearing a settlement, making WVU's move to the Big XII one step closer to reality.

According to the Charleston Daily Mail, the university would pay the Big East $11 million to exit the conference. Other reports say the payout could be as much as $20 million.

However, there could be other stipulations.

A source told the Daily Mail that the conference would have to add a future Big East member sooner rather than later, to take WVU's place on the conference's schedule this fall.

Boise State, which is set to join the Big East in 2013, is reportedly the leading candidate to make that move.

As for WVU, the Big XII could end up help paying a portion of the university's settlement.

Chuck Neinas, the conference's interim commissioner, has said the Big XII would ask its board of directors to help WVU if the university needed it.

WVU has already paid $2.5 million to the Big East as part of the conference's $5 million exit fee.

According to the Daily Mail, a settlement could be announced as soon as Thursday.

Providence County Superior Court Judge Michael Silverstein, who ordered WVU and the Big East into non-binding mediation, scheduled a status conference for 8:30 a.m. Thursday in Rhode Island.

The lawsuit over WVU's move to the Big XII has dragged on for months now.

The university, which has been a member of the Big East since 1991, announced it was switching conferences on Oct. 28.

Shortly after, Big East Commissioner John Marinatto said the conference intended to hold the university to a conference bylaw that requires an exiting school to give at least 27 months notice of its departure from the conference.

WVU then filed its lawsuit Oct. 31, asking Monongalia County Circuit Court Judge Russell Clawges to void the Big East conference rules and allow the university to go ahead and join the Big XII to begin play in 2012.

The university says it intends to leave the Big East June 30 and join the Big XII July 1.

WVU cites the exits of Pittsburgh and Syracuse to the Atlantic Coast Conference, and Texas Christian University's move to the Big XII -- even before it became an official member of the Big East -- as examples of how the Big East has deteriorated as a football conference.

"As the Big East, in less than two months, had denigrated into a non-major football conference whose continued existence is in serious jeopardy, WVU had no choice but to accept the Big XII's offer," WVU wrote in its original complaint.

"The denigration of the Big East football conference is a direct and proximate result of ineffective leadership and breach of fiduciary duties to the football schools by the Big East Conference and its commissioner."

Four days after WVU filed its lawsuit in West Virginia, the Big East countersued in Rhode Island, the conference's headquarters.

Report: Plan to speed up judicial nominations could be stalled

Thu, 09 Feb 2012 08:00:00 CST

Tobias

CHARLESTON - An effort by U.S. Senate Democrats to speed up judicial nominations could be delayed.

According to Roll Call, Democrats are facing a Feb. 29 expiration of the payroll tax break, among other important business items.

Senate Democratic leadership aides said because of the deadline, Democrats might have to skip their scheduled Presidents Day recess, which starts next week.

That also means plans for speeding up judicial nominations by holding votes before the holiday will most likely be pushed back.

However, no firm decisions have been made on the matter, the aides told Roll Call.

The votes would help Democrats gauge whether Republicans will filibuster nominations.

GOP senators are still fuming over President Barack Obama's decision last month to make a controversial recess appointment of former Ohio Attorney General Richard Cordray to the post of director of the U.S. Consumer Financial Protection Bureau.

The CFPB was created by the Dodd-Frank regulatory overhaul and is tasked with regulating consumer financial products.

Democrats, including Obama, argued Republicans were "stonewalling" Cordray's nomination.

So, Obama went ahead and appointed Cordray. In turn, some Republican senators have threatened to hold up Obama's nominations.

In his State of the Union address, the president called for an end to the stalling. Instead, he asked the Senate to pass a rule that all judicial and public service nominations receive a "simple up or down vote" within 90 days.

The Senate aides told Roll Call that Democrats had planned to hold votes on a package of both judicial and administration appointees, or hold votes on separate packages, before the Feb. 17-24 recess.

The aides said nominees with bipartisan support would be included to "ferret out ideological opposition."

Carl Tobias, the Williams Professor of Law at University of Richmond's law school and a keen observer of judicial nominations, said it remains "unclear" exactly what will happen -- for those West Virginia nominees, especially -- or, at this rate, when it will happen.

Berkeley Circuit Judge Gina Groh was nominated by Obama to the U.S. District Court for the Northern District of West Virginia in May to fill the vacancy left by the 2006 death of Judge Craig Broadwater.

West Virginia attorney Stephanie Thacker was nominated by the president in September to serve as a judge on the U.S. Court of Appeals for the Fourth Circuit. Thacker would replace Judge M. Blane Michael, who died earlier this year. Michael had held the position since 1993.

The U.S. Senate Judiciary Committee voted in October to approve Groh to the federal court and in November approved Thacker's nomination to the federal appeals court.

Both must now be confirmed by the full Senate.

"There was no (Senate Judiciary Committee) hearing for nominations this week, though they have been every two weeks since the 112th Senate began last year, except for December," Tobias said Wednesday.

"There also have been no floor votes since Jan. 23, the day the second session convened."

With the outlook growing bleaker, Tobias said Democrats may need to move for cloture.

Still, he said he expects a floor vote on Groh's nomination later this month.

Tobias noted Groh has waited longer than almost all district nominees and is both "well-qualified" and "non-controversial."

But Thacker's floor vote -- in light of the power struggle and the fact that the Senate has moved more slowly on appellate nominations -- is more difficult to predict, he said.

"She is second in line after 11th Circuit nominee (Adalberto) J. Jordan, so I still expect the Senate to vote on her in March because she, too, is well-qualified, uncontroversial and has the West Virginia senators' support," Tobias said.

No matter what, the issue is sure to come to a head -- and sooner rather than later, the law professor said.

He pointed to comments made by Sen. Patrick Leahy, D-Vt., on the Senate floor Tuesday morning.

Leahy, the chairman of the Senate Judiciary Committee, said the obstruction of judicial nominees is the worst he has seen in more than 30 years of Senate service.

"I have never seen anything like this," he told fellow lawmakers.

"These delays are a disservice to the American people. They prevent the Senate from fulfilling its constitutional duty. And they are damaging to the ability of our federal courts to provide justice to Americans around the country."

Leahy said Republicans need to "abandon their rhetoric" and do as Senate Democrats did when they worked to confirm 100 of President George W. Bush's judicial nominees in 17 months.

"The cost of this across-the-board Republican obstruction is born by the American people. More than half of all Americans, nearly 160 million, live in districts or circuits that have a judicial vacancy that could be filled today if Senate Republicans just agreed to vote on the nominations that have been reported favorably by the judiciary committee," he told lawmakers.

"It is wrong to delay votes on these qualified, consensus judicial nominees. The Senate should fill these numerous, extended judicial vacancies, not delay final action for no good reason."

The result of the GOP's inaction, he said, is that the people of New York, California, West Virginia, Florida, Nebraska, Missouri, Washington, Utah, the District of Columbia, Nevada, Louisiana and Texas are without the judges they need, and that the judicial emergency vacancies in Florida, Utah, California, Nevada and Texas remain unfilled.

"Our courts need qualified federal judges, not vacancies, if they are to reduce the excessive wait times that burden litigants seeking their day in court. It is unacceptable for hardworking Americans who seek their day in federal court to suffer unnecessary delays," Leahy said.

"When an injured plaintiff sues to help cover the cost of medical expenses, that plaintiff should not have to wait for three years before a judge hears the case. When two small business owners disagree over a contract, they should not have to wait years for a court to resolve their dispute."

Tobias agreed.

"It is very harmful to judges, litigants and attorneys, whose cases are delayed," he said.

"It puts unfair pressure on the other judges, and (the U.S. District Court for) the Northern District of West Virginia is a good example."

Judicial Vacancy Advisory Commission receiving First Circuit applications

Thu, 09 Feb 2012 07:55:00 CST

CHARLESTON -- Gov. Earl Ray Tomblin has announced the Judicial Vacancy Advisory Commission will begin receiving applications immediately for the vacancy in the First Judicial Circuit serving Brooke, Hancock and Ohio Counties.

This vacancy was created by the retirement of The Honorable Arthur Recht.

The deadline for application is March 2, and the deadline for submittal of letters of recommendation is March 15. Applications and letters of recommendation will not be considered if received after the deadlines. Interviews will be held on April 11.

For more information on the application process, contact G. Kurt Dettinger at 304-558-2000.

Suit between Gilmer Clerk, Va. bank settled for $40K

Thu, 09 Feb 2012 07:47:00 CST

GLENVILLE � Following a lawsuit to compel its release late last year, Gilmer County officials made public last month details of the settlement in a dispute between the county clerk, and a Virginia bank.

Upon conclusion of a five-minute special meeting held Jan. 20, the Gilmer County Commission disclosed the details of the settlement reached in the third-party suit Summit Community Bank of Winchester, Va. filed against the clerk's office in U.S. District Court in October 2010. In exchange for admitting no wrongdoing, the clerk's office, via its insurance carrier West Virginia Risk Corp., agreed to pay Summit $40,000.

Summit filed suit against the clerk's office after it was named as a co-defendant in a breach of contract suit filed in March 2010 by Textron Financial Corp. of Providence, R.I. In its suit, Textron alleged New Horizon Home Sales, an Athens, W.Va.-based modular home dealer, defaulted on paying them for property they helped New Horizon acquire in 2005 when New Horizon, three years later, sought permanent financing from Summit's branch in Moorefield.

According to the suit, New Horizon purchased property in the Rivers' View subdivision outside of Glenville along W. Va. Route 5 between the Otterbein United Methodist Church and the Gilmer Federal Corrections Institution. Records show New Horizon purchased the properties from Gilmer Housing Partners, a for-profit corporation managed by Glenville State College President Peter B. Barr, and located at his home on One Pioneer Way.

GHP was also named as co-defendant in the breach of contract suit, but was later dismissed a year later.

In its suit, Summit alleged it was brought into Textron's suit unwittingly due to the clerk's office failure to properly record lien information. Specifically, Summit alleged the clerk's office violated state law when it did not list New Horizon's president, Jack Jones, as a co-debtor on a Uniform Commercial Code fixture filing.

Records show, Summit reached a tentative settlement with the clerk's office on Oct. 11.

Following the settlement, West Virginia Record contributor Lawrence Smith made efforts to find out the details, including repeated telephone calls to the clerk's attorney, Wendy Greve, and through the filing of a Freedom of Information Act request. When the requested information was not forthcoming, Smith filed suit in Gilmer Circuit Court to compel its release on Dec. 23.

When asked how much of a deductible the county would be paying as a result of settling Summit's claim, commissioners referred questions to Gilmer County Prosecutor Gerry Hough.

When contacted, Hough said the amount was $10,000 though the county had yet to receive a bill for it.

Gilmer Circuit Court case 11-C-29

Injury suit against Glenville State set for August

Thu, 09 Feb 2012 07:44:00 CST

This motel in downtown Glenville is where Dale Norman alleges he suffered third degree burns when taking a bath during an overnight stay in October 2008. (Photo by Lawrence Smith)

CHARLESTON � A Gilmer County man's lawsuit against Glenville State College for injuries he sustained at a motel the College owns is slated for trial later this summer.

Kanawha Circuit Judge Carrie Webster has set Aug. 20 as the trial date in the case of Dale J. Norman v. Glenville State College, et. al. In his suit filed Oct. 4, 2010, Norman, 53, a Glenville resident, alleges he sustained third-degree burns to his feet when he attempted to take a bath two years earlier at the Conrad Motel.

According to the College's Web site, the Glenville State College Housing Corporation, a non-profit arm of the College that aids in helping it acquire and construct property, purchased the 42-room building on July 1, 2008, from Susie Kidd Shipe, and her uncle, Jack Conrad, whose family first started a restaurant in 1926, and expanded their business into the motel three years later. According to the Gilmer County Assessor's Office, GSCHC purchased the motel for $500,000.

GSCHC is named as co-defendant in Norman's suit.

The reason GSCHC acquired the motel was to provide housing for law enforcement officers in Glenville for training conducted by the state Department of Military Affairs and Public Safety. However, rooms would still be available to the public especially in June during the annual Folk Festival.

Records show, both GSC and GSCHC filed their separate answers to Norman's suit Nov. 12, 2010. With the exception of GSCHC admitting Norman did receive burns to his feet, and the hot water heater was not in his room, both it and GSC denied his allegations.

Also, they both asserted defenses, among other things, that they breached no duty owed to him, and any injuries he sustained were the fault of someone else including himself. Additionally, GSC asserted immunity from civil suits as a defense.

Furthermore, along with their answers, both GSC and GSCHC filed cross claims against each other. Both said should they be found liable for Norman's injuries, the other should be made to compensate for its share of the negligence.

According to the Secretary of State's Web site, GSC President Peter B. Barr is also president of GSCHC, whose office is located in the College's business office in Bennett Hall. Aside from being both president of GSC, and GSCHC, Barr is the managing member of Gilmer Housing Partners, a for-profit corporation located at the home the College provides for him on One Pioneer Way.

Seven months before Norman filed his suit against GSC and GSCHC, GHP was named as a co-defendant in a separate and unrelated breach of contract suit over the Rivers' View subdivision it developed along W.Va. Route 5 between the Otterbein United Methodist Church and the Gilmer Federal Corrections Institution. It was dismissed from the suit a year later.

Records show David J. Mincer and Benjamin P. Warder with the Charleston law firm of Bailey and Wyant represent GSC while Debra Tedeschi Varner with the Clarksburg law firm of McNeer Highland McMunn and Varner represents GSCHC.

A mediation session was scheduled for Sept. 13. However, Norman's attorney Doug Miley said he was postponed due to the need to conduct additional discovery.

Kanawha Circuit Court case 10-C-1767

Pineville attorney sentenced for wire fraud

Thu, 09 Feb 2012 07:36:00 CST

BECKLEY -� Pineville attorney has been sentenced to 18 months in prison by U.S. District Judge Irene C. Berger for wire fraud.

Christopher B. Bledsoe, 33, previously pleaded guilty in September, admitting that he had falsified payment vouchers for court-appointed criminal defense work.

Lawyers hold a position of public trust," U.S. Attorney Booth Goodwin said. "When that trust is broken, the public and the profession as a whole suffers. Seeing three members of the bar convicted of essentially the same scheme within a one-year period is particularly disappointing.

The sentence of the court in this case will hopefully send a clear message that such conduct cannot be tolerated and will be dealt with harshly."

Since approximately 2004, Bledsoe practiced law in Pineville in Wyoming County. Among other types of cases, he represented indigent clients in state criminal matters pending in Wyoming, Mercer and McDowell Counties.

As a normal practice, after a case was completed, Bledsoe submitted a payment voucher form to the respective Circuit Court Judge for approval. The Circuit Court Judge reviewed the payment voucher and signed a court order authorizing payment. Bledsoe then submitted the court order to the West Virginia Public Defender Services ("WVPDS") for payment. As a general matter, the WVPDS took several months or more to reimburse Bledsoe.

Bledsoe entered into a cash-advance agreement with Daniels Capital Corporation ("DCC"), a corporation headquartered in Birmingham, Alabama, to expedite his payments. In exchange for prompt payments less a small percentage, Bledsoe assigned his right to full payment from WVPDS to DCC.

In essence, the defendant received the court order approving his payment voucher for a particular case, he would fax a copy of the order to both WVPDS and DCC. DCC would wire Bledsoe the reimbursement less a percentage that same day or the next day. When WVPDS eventually processed the same payment voucher, WVPDS would pay DCC directly the full amount.

Beginning in January 2010 and at least until February 2011, Bledsoe created false payment vouchers. In some instances, as soon as he was assigned a criminal matter, Bledsoe would estimate the fee he expected to earn on the particular matter and create a false payment voucher, including falsifying the Circuit Court Judge's signature, and send to DCC for payment before any work was actually performed.

In other instances, Bledsoe created an entirely false payment voucher, including a fictitious client and case number.

Bledsoe submitted approximately $189,000 in total payment vouchers to DCC. At this time, the parties have not yet been able to ascertain what portion of those billings represent legitimate services, but both acknowledge at least $30,000 of the vouchers are fraudulent.

This case was brought as part of an investigation by the West Virginia Commission on Special Investigations into false and fraudulent billings submitted by attorneys for services performed in appointed criminal matters.

The case was handled by Assistant United States Attorney Thomas C. Ryan and investigated by the West Virginia Commission on Special Investigations.