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Little Lawyer Brings Down Capoccia And Debt Reduction Operation

Andrew Capoccia and his debt reduction law firm were under fire for years for bilking clients.
They've got thousands of complaints, totaling millions of dollars. Then along comes one attorney with one client who decides it's his job to stop Capoccia, and he does.

"It seemed like the right thing to do," That's attorney Chris Reis talking. He works in Randolph, Vermont just outside of killington. It's not exactly a power center, but it's where Chris Reis practices his specialty, bankruptcy law.

So how did he get involved? Well before coming to him for help, one his clients paid $20,000 to the Law Centers for Consumer Protection in Bennington, Vermont. It's a spin-off of the debt reduction law firm created by Andrew Capoccia in New York. Chris Reis says the $20,000 is gone and the debt was still there.

Attorney Reis had been hearing similar stories about the debt reduction law firm in Bennington, but says he couldn't figure out a way to sue them and collect. "You're going after an entity that has cash flow and no real assets," he says. And no malpractice insurance either.

Then attorney Reis had a brainstorm. "I got enough people and believe me it wasn't hard to file an involuntary chapter 7 bankruptcy," he says. Which shuts the firm down, almost immediately. That's quite a feat when you consider the history of Andrew Capoccia and the caliber of people still going after him and his operation, but they didn't shut him down.

Here's the timeline:
February 1997- Andrew Capoccia opens New York debt reduction Law Center.

November 1999- New York Attorney General files law suit against Capoccia for allegedly cheating clients.

June 2000- Capoccia's partners move debt reduction law operation to Bennington Vermont.

September 2000- New York disbars Andrew Capoccia. He stays on as a consultant for Vermont Law Center.

February 2002- Vermont sues Bennington Law Center.

March 2002- Federal Agents raid Vermont and New York law offices and Capoccia's Guilderland home, seizing $2.5 million in assets. Officials say money was funneled out of clients accounts to Capoccia's wife Carol.

January 2003- Bennington Law Center is forced to declare bankruptcy and shuts down.

"I thought it was a noble goal and there is a trustee in place with the aid of the Justice Department and Attorneys General who will sort through what funds are in hand. Presumably there will be a prompt and effective administration so people will get back the right money," says Reis.

Now his role in this case is over and wait until you hear this. "I did this pro-bono, which means I am not making any money out of it," says Reis.

If you want more information on the bankruptcy contact the District of Vermont Bankruptcy Court in Rutland, VT. To Get To Their Web-Site CLICK HERE.