Thursday, August 25, 2022 – Ghislaine Maxwell’s lawyers are suing for $850,000 in unpaid legal fees as well as accusing some of her relatives of hiding her multi-million dollar fortune.
Maxwell’s former attorneys at legal firm Haddon, Morgan & Foreman (HMF) alleged that members of Maxwell’s family racked up bills and conspired to hide her true wealth from them as they worked unsuccessfully to defend her.
Lawyers at the firm filed a civil suit against the disgraced British sex trafficker who was convicted on five out of six counts as well as her brother Kevin and her estranged husband Scott Borgerson, according to the court papers.
HMF says it was told Kevin Maxwell would be handling the payment for their legal services to his younger sister.
However, in their August 22 filing, the lawyers say they soon ‘developed concerns about Ms. Maxwell’s willingness and ability to meet her financial obligations.’
‘Based on developments during the first few weeks of the engagement, HMF developed concerns regarding the representation, including HMF’s role in the case and Ms. Maxwell’s willingness and ability to meet her financial obligations,’ the court filing – which was found by Australian podcaster Jen Tarran – says.
The lawyers claim they requested a $250,000 retainer before the trial began, soon after she was arrested in 2020 by the FBI. Half of this amount was paid quickly, HMF says, and the firm emailed Kevin Maxwell for updates about the outstanding amount.
He ignored the emails, HMF says in its court filing to a court in Denver, and in 2021 he fell further behind on payments to the law firm. The lawyers say Kevin Maxwell instead made ‘a handful of sporadic payments’.
With Ghislaine Maxwell’s November 2021 trial drawing closer, HMF says it asked for a larger $ 1 million retainer, which was also not paid, and on November 5 the lawyers threatened to end their representation of her.
‘In reality, Mr. Maxwell had no present intention of doing so,’ HMF writes.
The law firm says that it was repeatedly told by Kevin Maxwell that his sister’s ex-husband Scott Borgerson was in control of her assets, and that it was his fault the payments for their services were being delayed.
In its filing, HMF claims Borgerson set up two limited liability companies and used Maxwell’s fortune to buy two condos in Boston, as well as other properties in Massachusetts and New Hampshire – to shelter Ghislaine’s wealth.
Prosecutors in Maxwell’s trial said she had the ability to ‘hide her true wealth,’ pointing to the fact that just after her 2016 marriage to Borgerson, Maxwell had transferred most of her $20.2million worth of assets over to a trust he controlled.
By the time the trial ended in December 2021, Maxwell had racked up $950,000 worth of overdue legal fees to HMF. Kevin Maxwell paid $143,500 to the firm in mid-January this year, but the lawyers say the rest is still yet to be paid.
‘On January 14, 2022, Mr. Maxwell falsely assured the firm that he would bring it current no later than February 28, 2022,’ the filing says.
‘In reality, Mr. Maxwell would never again make a payment to HMF toward Ms. Maxwell’s balance—which still exceeded $850,000.’ Later, the filing adds: ‘HMF has been damaged as a result of Mr. Maxwell’s fraud in an amount to be proved at trial.’
Lawyers at HMF are also suing Borgerson for ‘wrongfully encumbering Ms Maxwell’s assets, joint marital assets, and/or assets committed to fund her defense, impairing her ability to perform her obligations.’ They say he and Maxwell ‘shared the motive of protecting those assets from creditors including HMF.
‘HMF is therefore entitled to a judgment for one and one-half the value of the assets transferred or one-and-one half the amount necessary to satisfy its claim against Ms. Maxwell, whichever is less,’ the filing says.
Maxwell, 60, was convicted after the FBI brought charges against her of enticement of minors and sex trafficking of underage girls, related to her association with the late pedophile Jeffery Epstein. She was sentenced to 20 years imprisonment.
She is currently serving her sentence at a low-security prison in Tallahassee, Florida.
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