Former CFO of Girardi firm must appear in bankruptcy court, even if he takes the 5th

The former chief financial officer of Girardi Keese must appear on behalf of the defunct law firm in bankruptcy proceedings, a bankruptcy judge ruled Tuesday.

U.S. Bankruptcy Judge Barry Russell made the ruling despite protests by the chief financial officer's attorney, Richard M. Steingard, who argued in court filings that his client plans to invoke the Fifth Amendment partly due to an ongoing federal criminal investigation of Girardi Keese in Illinois. Because of this plan, Steingard said, his client, Chris Kamon, would not be able to answer questions related to the bankruptcy proceedings. In re: Girardi Keese, 20-BK12022 (C.D. Cal Bankruptcy Ct, filed Dec. 18, 2020).

At Tuesday's hearing, Russell said Kamon would have to show up in court to take the Fifth Amendment. Steingard pushed back.

"Here's my suggestion, your honor. This whole issue about whether he should take the Fifth can be mooted out if the U.S. attorney grants him immunity, and that is not a far fetched proposition," Steingard said. "Rather than go through the exercise of having him take the Fifth, why not consider postponing a decision, if you don't mind, allowing me to see what the status of the investigation is with the U.S. attorney's office?"

Russell declined the request, citing his experience as a former prosecutor. "God knows how long ... that could be a very long time," Russell said. "It's not an unreasonable request, but I know things move very slow in cases like this."

The trustee for Girardi Keese, Elissa D. Miller of SulmeyerKupetz APC, asked Russell in March to designate Kamon to act and appear on behalf of Girardi Keese, noting that no one appeared on behalf of the firm at a February meeting. She also noted that no one has filed bankruptcy schedules or statements of financial affairs for the firm.

"Among other things, Kamon oversaw the accounting department, prepared checks on behalf of the debtor, including client trust account checks, and engaged in discussions with insolvency advisers and potential lenders last year on behalf of the lender. As of the petition date, Kamon also served as the trustee for the debtor's 401(k) plan," Miller's motion stated.