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Thursday, March 28, 2024 | Back issues
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Clients Say Lawyers Just Won’t Do Right

CHICAGO (CN) - Three people claim their attorneys failed to file responses in RICO litigation, so the court used their accusers' version of the facts in entering a judgment against them for $2.5 million each.

Gina Parisi, Gari Parisi and David Dachman sued sex attorneys and/or law offices in Cook County Court: Andy Robert Norman, Whitman Brisky, Brisky Mauck & Baker LLC, Adam Goodman, Goodman Law Offices LLC, and Timothy J. Murphy.

"Starting in approximately June, 2008, Kenneth Dachman incorporated a company known as Central Sleep Diagnostics Inc. (herein 'CSD'), purportedly as a business operating as a sleep diagnostic clinic," the plaintiffs say.

The complaint continues: "Kenneth Dachman solicited investors for his clinic by, among other things, representing that he had an undergraduate, graduate, and a doctoral degree from Northwestern University, when in reality he was only a high school graduate; that the clinic was approved for reimbursement from Medicare and other insurers, when in reality it was approved by none; by falsely stating that CSD had offices in multiple states and hundreds of referring physicians; and by preparing and distributing false and fraudulent financial statements concerning the clinic, including an 'Executive Summary' in which Kenneth Dachman represented that the clinic was earning millions of dollars when in reality it had no earnings.

"Based upon the misconduct outlined above, Kenneth Dachman solicited and received over $2 million in funds from approximately 70 investors, for investment in the CSD clinic."

The plaintiffs add: "Dachman was alleged to have used funds obtained from investors in CSD for his personal use, to purchase a house for himself, and to fund other business ventures, or for payments to fictitious entities that Kenneth Dachman created, and otherwise dissipated all the funds that investors had paid him for investment into CSD."

In a lawsuit brought by CSD investors in 2010, the Parisis and David Dachman were accused of receiving some of the money that Kenneth Dachman fraudulently obtained from investors. But the plaintiff say the "had no legal ownership or equitable interest of any kind in CSD."

They claim, "There was no evidence that plaintiffs herein had an actual or constructive knowledge of the allegations of fraud made against Kenneth Dachman in the complaint in the CSD litigation, or that plaintiffs participated in any scheme or enterprise intended to defraud CSD investors."

However, the plaintiffs say, their attorneys, Adam Goodman, and then Andy Norman of Whitman, Brisky, Mauck & Baker, failed to object to the CSD investors' requests to admit facts. Therefore, "all the requests were deemed admitted and could not later be contradicted," according to the complaint.

In 2011, the judgment was entered against the Parisis and David Dachman, ordering them each to pay $2.5 million to the CSD investors, the complaint states.

After judgment was entered, the plaintiffs say they hired Timothy Murphy to file a motion to vacate the judgment, but he never did so.

The plaintiffs seek damages for legal malpractice.

They are represented by Bryan O'Connor.

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