In sad news, famed attorney F. Lee Bailey, one of the few people you can say was famous to non-lawyers before getting wrapped up in the O.J. trial, is filing for bankruptcy. This isn’t his first filing, having filed almost exactly a year ago, but it’s related to the same dispute that got him disbarred in Florida and stuck with a hefty IRS tab.
Bailey was disbarred in Florida in 2001 over his handling of shares of stock owned by a client who pleaded guilty to drug smuggling and money laundering. That stock also led to the dispute with the IRS, which said Bailey owed $1.9 million because of his failure to report some of the stock proceeds as income. With interest and penalties, the IRS filed liens against Bailey totaling $4.5 million.
Bailey, who says he’s worth less than half a million but owes “between $1 million and $10 million” is making this Chapter 13 filing to remove some liens and set up a payment plan after last year’s bankruptcy efforts managed to discharge over $4 million.
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How does one of the most famous criminal defense lawyers in the world end up that much in debt? Well, going into leasing yachts isn’t a great move, but the real lesson is to leave the lawyering to the lawyers and the accounting to the accountants.
Though Bailey really should have blamed a one-armed man for most of his losses.
Famed lawyer F. Lee Bailey files again for bankruptcy [Press Herald]
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Joe Patrice is an editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news.