“To avoid the consequences of its malfeasance, the debtor initiated this bankruptcy case,” receiver John Polderman said in his objection to first-day motions. “Brian Dailey and The Dailey Law Firm have shown that they cannot be trusted to act in a fiduciary capacity with client funds.”
Dailey, who also filed a petition for Chapter 13 personal bankruptcy protection July 25, is facing a 12-count complaint by the Attorney Grievance Commission accusing the personal injury attorney of dishonesty, fraud and deceit. It is scheduled for a hearing Aug. 8. Dailey could be subject to discipline as severe as disbarment.
Some of the allegations against Dailey in the 2022 Attorney Grievance Commission filing to the Attorney Discipline Board date back more than a decade. As part of their defense, Dailey and his firm have filed complaints and countersuits against those going against his practice. In court documents, Dailey alleges that a former employee embezzled $600,000 from his firm, which contributed to its financial insolvency. The former employee denies the allegation.
Dailey declined to speak to Crain’s on the record for this report.
“Brian and I are looking forward to a full and fair hearing before the hearing panel at which time we