Bob Hosch. Photo courtesy of The Orlando Sentinel.
Summary: Bob Hosch of the closed law firm Butler & Hosch has filed a petition to surrender his Florida law license.
Mortgage law firm, Butler & Hosch, shuttered its offices around the country in May, and now its CEO Bob Hosch will surrender his Florida law license.
According to the Orlando Sentinel, Hosch, 54, has filed a petition in Florida Supreme Court to surrender his license in a revocation agreement. The agreement would resolve him against any Bar complaints against him.
Hosch has also agreed to reimburse The Florida Bar for any costs in his case. This includes any claims made regarding stalled foreclosure cases that can be filed with the Client’s Security Fund of the Florida Bar. This fund helps compensate people who have lost property or money due to attorney misappropriation or embezzlement.
A spokesperson for Hosch said they do not believe any Security Funds claims have been made.
The firm, which was founded in Florida in 1972, had 700 attorneys and employees and had offices in 27 states. At the time of its closure it was handling 60,000 foreclosures, the Tampa Bay Times reports. The firm mostly represented banks and lenders.
On May 14, Hosch sent an email to employees stating he was stepping down and that the firm was closing. He explained that the company’s strategy of rapid expansion overwhelmed the company finances. He said that the firm “grew too fast” and that this resulted in cash crunches and an inability to attract new capital. Without cash, he said the firm had to close because it couldn’t meet payroll.
In Hosch’s petition, he acknowledged that he had failed to promptly file motions to withdraw or notify the courts. Florida clerks said that the Butler & Hosch closure caused delays and fees, according to The Orlando Sentinel.
A Collier County Clerk, Dwight Brock, told the newspaper that home foreclosure sales were halted because Butler & Hosch attorneys stopped responding to phone calls and emails. He said that Florida courts had to work overtime to clear up the clog caused by the firm.
While giving up his Florida license provides some protections for Hosch, it will not protect him against a proposed federal class action lawsuit filed by former employees. They are seeking damages because they say the firm violated the WARN Act, which requires advance notice for layoffs.
Source: The Orlando Sentinel
Source: Tampa Bay Times