March 8, 2009 — The family of Jeffrey Prosser, former owner and CEO of Innovative Telephone, has had its troubles keeping a stable stable of lawyers. (See "Sixth Prosser Attorney Bites the Dust as Secrecy Veil Falls.")
The latest twist is the reemergence of Jeffrey B.C. Moorhead, once associated with the V.I. Public Services Commission, as the most recent attorney for Dawn Prosser, wife to the debtor.
Moorhead announced in a "stipulation for substitution of counsel" filed March 5 with the U.S. Bankruptcy Court that he "will be substituted in place of Flavia E. Logie, Esq. … to represent Dawn Prosser … effective as of his appearance in this matter on March 5, 2009." Logie also signed the paper. No reasons were given for the move.
As reported Feb. 18, Dawn Prosser fired St. Thomas lawyer Karin Bentz as her attorney and then replaced her with Flavia, a St. Croix lawyer. Two weeks later, Moorhead emerged in a series of rapid movements reminiscent of the famed Chicago Cubs' double-play combination of Tinkers to Evers to Chance.
Moorhead's previous involvement in the case was controversial. He was the hearing examiner for the Public Services Commission at the time, in 2007, and he appeared in the courtroom to argue that the PSC had to be consulted before any action could be taken by the court regarding Vitelco, a PSC-regulated utility.
The bankruptcy judge, Judith Fitzgerald, in her Pittsburgh courtroom, allowed him to make his case, which was similar to the Prosser position, but said she was not convinced that he had legitimate standing in the matter. (See "Analysis: Bankruptcy Case Complicated by Disowned Lawyers.")
Subsequently the territorial attorney general ruled that only someone designated by his office could represent the PSC, and he appointed a substitute for Moorhead. Meanwhile, Stan Springel, the trustee for what had been the Prosser corporate interests, asked the court to hold Moorhead in contempt of court for wasting its time and for delaying the already oft-delayed proceedings. Springel's motion remains on the judge's desk, and has not yet been acted upon.
Whether the judge will accept Moorhead in this new role is not clear. In such cases, lawyers may not be retained or dropped without the approval of the judge.
The hearings will resume on March 10 in Pittsburgh, with further arguments regarding whether Prosser fraudulently transferred real and other property away from his corporations to himself and/or family members.
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