Wells of Justice references case documents, quotes from case documents, and in some cases, we have made the case documents available by linking them within the articles. Case information reported by Wells of Justice is correct to the best of our knowledge.

The number of cases reported herein in no way reflect all of the cases reported to us from across the nation. If Wells of Justice researched all cases reported to us, we would need at least 500 additional volunteers and writers in addition to financial donations to cover the cost of obtaining case documents! Most cases reported on this site are those filed in the Northern District of Illinois, Western Division. The Division has one bankruptcy judge, and seven (7) chapter 7 trustees. That makes it easier to research cases and follow patterns. A few cases presented on this site are from states outside of Illinois. As an example, "Double-Dipping" is a case in Los Angeles, CA. Just because the majority of the cases reported in this section are cases administered in Illinois in no way reflects that the same patterns and evidence of bankruptcy court corruption are not nationwide.

Some individual victims have written their own stories and take responsibility for the accuracy and content. For information on how to submit a case for presentation on this site, email us at

The days of issuing threats under the color of official right are still upon us . Some bankruptcy trustees employ the use of fraudulent charges, abuse of the law, and half-truths. Victims have no choice but to cooperate by submitting to extortion schemes.

When the Acting Director for the Executive Office for U.S. Trustees, Martha L. Davis, received reports of crimes committed under color of official right, her response held the victims responsible for fraud, extortion and embezzlement committed by the bankruptcy trustees. She stated,

Martha L. Davis seems to believe that it's perfectly legal for bankruptcy trustees to embezzle money, because their victims did not cooperate with the extortion process.

In 2002, Martha L. Davis was promoted to Deputy Director for the Executive Office for U.S. Trustees, and the public's trust continues to be betrayed. If Martha L. Davis, or any other officer or employee of the United States Trustee Program cares to explain, rebut or otherwise debate with the facts presented herein, we welcome the opportunity. Please email us. We will post your response on this site.

A Clear Case of Extortion involves exempt assets, the debtor motioning to dismiss his case, and undo neglect in the judge entering a decision, allowing the chapter 7 trustee time to file motions, including objection to the exemption of the debtor's wages.

A System Gone Wrong is a case that began when business associates of the debtor would not negotiate on the debtor's terms and predicted it would be "all or nothing" if the debtor filed for bankruptcy. Filing a chapter 11, the business associates assisted in getting the case converted to a chapter 7. These business associates have purchased property of the estate.

The debtor, suffering a heart attack, was placed on the stand shortly thereafter and required to answer questions that only his business accountant was qualified to answer. The debtor and his non-debtor wife have since been convicted of criminal charges, filed by the U.S. Attorney, including perjury, due to information the debtor forgot, or didn't know at that hearing.

An income tax return alleged to being laundered by the non-debtor wife is marital property. The wife did not file for bankruptcy, but was indicted by the Grand Jury, and found guilty by the jury, for laundering the entire amount of the income tax refund.

The chapter 7 trustee, Richard Cox, is going after everyone and everything he can, including property purchased solely by the non-debtor spouse, and denying her ownership interest in marital property.

Abuse of Authority is a case that the trustee did not close after the discharge was entered. After a year of the debtor paying his mortgage, the trustee took action to sell the debtor's home. The trustee sold the house to a realtor who placed it up for rent. The trustee also "offset" the debtor's homestead exemption for an income tax refund -- a matter that the trustee never brought before the court until he was required to honor the homestead exemption. It was approximately a year after the close of the sale when the debtor finally received the balance of his homestead exemption.

Bankruptcy Court Corruption in Memphis is a case where the debtors report that Bankruptcy Judge Jeannie D. Latta, in the bankruptcy court for the Western District of Tennessee, made statements on the Record that there are no African American attorneys experienced enough to practice chapter 11 in Memphis.

Betrayal is a case that was closed and reopened on the allegation that the debtors hid assets of $150,000 to $200,000. The trustee sold some of the property to an attorney that works for another trustee. In the end, the trustee reported $3,758.85 in assets. His compensation totalled $4,259.86, which meant that all assets were diverted to his compensation. This case also demonstrates "insider" dealings.

Charis Hospital is a case that was filed as a Chapter 11 in the state of Louisiana, then converted to a Chapter 7. The bankruptcy court has found that while under Chapter 11, the Liquidator disobeyed Court Orders. In a recent bankruptcy court decision, the judge ordered the liquidator to return her fees, and also that her attorneys return a portion of their fees to the bankruptcy estate. The liqudator fails to obey that Order, and the U.S. Trustee has failed to pursue enforcement of that Order.

Conspiratorial Behavior is a case involving division of property in a divorce decree, conflict of interest, and asking the bankruptcy court to act as an appellate court to void the state court's order in the divorce. After introducing the charge that the debtor fraudulently conveyed property to the non-debtor ex-wife, the trustee withdrew as trustee in the bankruptcy case because he consulted the non-debtor spouse about the same issues before the ex-husband filed for bankruptcy. The trustee, as a private attorney, then entered appearance to represent the non-debtor in defense of the very charges he introduced. In the end, the debtor and ex-wife "compromised" by giving the trustee $5,000 to prevent him from selling the house. The trustee diverted the entire $5,000 plus interest to his compensation and expenses.

Confidence Crime is a case that demonstrates what happens behind the scenes and how debtors are misled to believe that the discharge of debts is the same as closing the case.

Confusing Issues is a case involving division of property in divorce that was later placed in a Trust. It involves an attorney who agreed not to contest the bankruptcy trustee's actions, while at the same time representing the debtors who were unaware of his agreement with the trustee.

Double-dipping presents the fees of an attorney for the trustee, and the debtor's objection. It involves personnel of the U.S. Trustee's Regional Office upholding attorney fees for the attorney performing duties of trustee.

Default Orders reports two cases. One case involves a company who was represented by an attorney who is also a bankruptcy trustee. Shortly after entering his withdrawal, the bankruptcy trustee motioned for a default judgment against the company. In the other case, the trustee, who is the same attorney that represented the company in the aforementioned case, motioned for an order by default, although the debtor was represented by legal counsel who supposedly appeared at each hearing.

Stealing Non-Debtor Owned Property is an extensive case involving the transfer of property approximately 18 years before the debtor filed for bankruptcy. The property was placed in a Trust, and a state court judge acknowledged the Trust as the "only party in interest" of ownership in the property. The only creditor filing a claim in the case was represented by an attorney who was also the appointed bankruptcy trustee.

After representing the creditor to obtain relief from the automatic stay, the trustee then resigned as trustee in the bankruptcy case. The replacement trustee then hired the former trustee, who also represented the creditor. The bankruptcy court revoked the debtor's discharge of debts. Then, the trustee and attorney for trustee went after the property in Trust. The bankruptcy judge barred the debtor and non-debtor Trustee of the Trust from filing documents without first obtaining his approval. The bankruptcy judge denied their requests for leave to file, and entered a default order selling the property. This case also involves the bankruptcy court voiding a lease between two non-debtor parties. This case ended in the trustee diverting all assets to his compensation and the compensation of his hired professionals.

Unlawful Request involves a case that presents a pattern of how bankruptcy trustees use adversary cases to threaten revoke of the discharge of debts after more than a year since the discharge was entered -- in violation of the Bankruptcy Code. The attorneys representing the debtors do not object to the motion as untimely.