Gene Cauley, an Arkansas attorney, was one of the lead plaintiff’s attorneys in a securities lawsuit against BISYS Group, Inc., an insurance company, that Cauley alleged inflated its stock value by issuing false and misleading press releases and financial filings. The parties settled the lawsuit in 2006 for $65.8 million. Cauley was the sole signatory of an account created to hold the settlement money. Last month, Cauley informed his co-counsel that he could not produce $9.3 million of the settlement funds that were supposed to be distributed to the plaintiffs.
New York federal judge Jed Rakoff held a hearing regarding the missing funds. At the hearing, Cauley was represented by criminal lawyer, John Wesley Hall, who informed the court that the money was not “presently available,” but would not elaborate based on Cauley’s privilege against self-incrimination. Hall has noted, however, that Cauley intends to produce the money within 90 days.
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