Saying that judges rarely use words “incarceration,” “fraud,” “automatic bench warrant” in an order to show cause would be an understatement. Nonetheless, Judge Otis Wright did just that in Ingenuity v. Jon Doe (CACD 12-cv-08333). Tired of apparent Prenda Law’s fraudulent activities, he ordered its counsel Brett Gibbs to explain his and his law firm’s behavior at a hearing set for March 11. Additionally, he allowed parties (Brett Gibbs and Morgan Pietz) to file briefs before February 19. A deposition of Prenda by Morgan Pietz was set to proceed on the same date.

Brett Gibbs tries to play a pity card, points finger at “Prenda senior people”

Copyright troll Brett Gibbs

A couple of hours before the deadline, Brett Gibbs filed his declaration through a newly hired law firm Waxler Carner Brodsky LLP, which has been “primarily defending lawyers in malpractice actions.” Although it was a relatively wise move (akin to an old lawyer’s saying that “a lawyer who represents himself in a court has a fool for a client”), the result was a pile of horse manure that does not pass a common sense scrutiny. The funny thing is that this spectacular failure does not characterize Gibbs’s defenders, it’s just too much lying to explain: no star attorney is capable of coming up with a credible story painting Gibbs an innocent kid deceived by evil grown-ups.

Regardless, the main huge news is that Brett has given up his stubborn loyalty and has started pointing his finger at Prenda’s “senior members” (Paul Hansmeier and John Steele):

I am and have never had an ownership interest in the copyrights involved in the Copyright Litigations. As discussed in greater detail below, I did not make strategic decisions like whether to file actions, who to sue, and whether to make a certain settlement demand or accept an offer of settlement in the Copyright Litigations. These types of decisions were made by the clients, after consulting with senior members of the law firms that employed me in an “of counsel” relationship.
[…]

I have never had a financial or fiduciary (i.e., ownership) interest in AF Holdings. AF Holdings was a client of S&H and then Prenda. The face-to-face and direct interactions between S&H and later Prenda with AF Holdings were handled by the senior members of the law firms and not me.
[…]

I have never met Alan Cooper, and do not know what the extent of Mr. Cooper’s role is in AF Holdings aside from seeing a signature from an “Alan Cooper” on the copyright assignments and pleadings.
[…]

I first became aware of a question regarding the identity of Alan Cooper when it was raised by Mr. Pietz.
[…]

I confirmed the existence of the client-executed verification either by seeing a copy of the signed verification, or at the very least, being informed by a representative of S&H or Prenda that a signed verification was in the possession of S & H or Prenda.

The explanation of the reason how Alan Copper’s fraudulent signature was verified by Gibbs and why he failed to present the original is simply stunning. Sure, it is a credible and sufficient reasoning that will clear Mr. Brett’s name so he will avoid sanctions:

In Case No. 84, Mr. Pietz first asked for a copy of Mr. Cooper’s verification to the petition to perpetuate testimony on or about December 2012, well after the petition had been discharged. Given the length of time since the case was discharged, I was informed and understand that S&H (and later Prenda) no longer has a copy of Mr. Cooper’s verification to the petition to perpetuate testimony.

Just a week earlier Steele and Hansmeier decided to delegate Gibbs’s responsibilities to Michael Dugas. After two and half years of collaboration, they have thrown Brett under the bus, so no surprise that his loyalty has evaporated quickly.

I’ll leave it to a reader to go through unconvincing excuses, which are not as entertaining as those that another troll’s mob mastermind, Keith Lipscomb, poured on Judge Baylson last fall.

 


Click to enlarge

[2/21/2013 update] It is not remotely funny anymore that Brett (to whom we already gave an honorable nickname “Pinocchio”) is lying without even thinking about the possibility of anyone doing some basic fact checking. Here is an example (thanks to a commenter for noticing):

From Gibbs’s declaration:

31. In addition, in order to rule out neighbors of the 1411 Paseo Jacaranda, Santa Maria, California 93458 location utilizing the internet connection, I performed a Google map search and obtained a satellite picture of the corner house located at 1411 Paseo Jacaranda, Santa Maria, California 93458. A further public search revealed that the house was approximately 1,200 sq. ft. which sat on a 6,534 sq. ft. lot. Considering the position of the house on the lot, and its position away from the neighboring houses, it seemed clear that, should the household have wireless internet, it would not have been accessible by the neighbors.

Alright. A typical wireless range is from 50 to 100 m. Look at the map: green circle’s radius is 50 m, and yellow — 100 m. So we are talking about 10-30 households capable of utilizing the wireless connection in question.

Can’t help noticing another funny argument in Gibbs’s declaration:

[…] the inconsistency did not prevent a prima facie showing of copyright ownership because the law only requires the assignment to he signed by the assignor. Given the court’s finding that the copyright assignment in Case No. 3335 was prima facie valid despite an issue regarding whether the assignee had properly executed the assignment. I had and have a good faith belief that the assignments in Case No. 6636 and 6669 are valid despite any alleged issue regarding the identity of Alan Cooper.

Or, as scruuball translated it to Twitter’s 140,

It doesn’t matter that we forged a signature, because we didn’t need it in the first place! Hah!

To our surprise, there is a certificate of AF Holdings’ incorporation, but the quality of the copy is poor, and I’m afraid that given St. Kitts’ secrecy laws, there is no way to validate that it is authentic. Even if it is real, this does not negate the fact that AF Holdings is a shell entity “owned” by Prenda. Note that nothing of this kind was presented for another fraudulent entity, Ingenuity 13.

The fact that Brett Gibbs has lawyered up has more significance: it will be easier for him to cut a deal with an Attorney General and (relatively) save his ass while allowing putting the major culprits behind the bars.

Morgan Pietz replies to Judge Wright’s OSC. One word: “Wow”

Defendant’s attorney Morgan Pietz had just an hour to review Gibbs’s weaselspeak. Admittedly, Morgan wrote the bulk of his response in advance, but still he managed to add thorough debunking of Gibbs’s whining. It’s impossible to pull pieces from this document, it is a must read from the first line to the last. It has is all: a long history of Prenda’s crookery, calling out lies and contradictions in Gibbs’s declaration, examples of more identity theft, damning revelations during the deposition of Paul Hansmeier (who, like a “boss” in an action computer game, appeared in the last episode).

I only want to quote the beautiful conclusion (links supplied):

The conduct of Prenda and its “of counsel” Mr. Gibbs in these cases undermines the integrity of the courts and the public’s confidence in the justice system. Here, Prenda has shown is that it is willing to do just about anything to obtain grist for its national “settlement” mill. Repeatedly, in hundreds of actions filed in courts across the country, Prenda has resorted to misrepresentations, halftruths, and questionable tactics, if not outright fraud, forgery, and identity theft. Until now, Prenda has gotten away with quite a lot of these kinds of tactics because it simply abandons its lawsuits, via a voluntary dismissal, after obtaining subpoena returns, and some settlements. Indeed, as noted above, Mr. Gibbs is already at it again, now sending out demand letters on behalf of Guava, LLC, which is now purportedly owned by Livewire Holdings, LLC not a mystery trust. Exactly who is responsible for the worst of Prenda’s actions here may not yet be clear, but this is the archetypical type of case, where there is a pattern of bad action that is done in such a way to avoid scrutiny, where a major sanctions is appropriate as a deterrent. This Court is urged not to go easy on Mr. Gibbs or Prenda Law.

 

Many paragraphs in this brief deserve separate posts, and sure we will continue shedding the light on Prenda and its epic downfall until the fraudsters cease their criminal activity and are severely punished.

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