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I Called It! California Counsel Quits On Corix Biosciences (CXBS), Bone and Paesano
Initially Posted: May 7, 2018 9:00 a.m. PDT   Last Updated: April 7, 2018 6:10 p.m. PDT

In my second blog post regarding my litigation against Corix Biosciences, Inc. (CXBS) and Sean Zarinegar, I speculated that California attorney, Paul Jacobs, would eventually withdraw as counsel for the defendants for ethical reasons, i.e. he knows his clients are guilty as sin and are lying through their collective teeth.

It turns out that my prognostication was dead on.

Early Sunday morning, Mr. Jacobs filed a motion to be relieved as counsel of record for the defendants. Generally, attorneys are allowed to seek this relief when they haven't been paid or for ethical reasons, such as the desire not to subjorn perjury. Well I know that Mr. Jacobs has been paid, because Corix's (former) Corporate Secretary, Christ Froese, testified last month that she was paying the bills every month. Therefore it becomes obvious that ethics and conscience, two qualities that are in short supply at the Michigan firm of Paesano, Akkashian and Arpkarian, P.C., would not permit Paul to continue to represent the thieves. This is clearly spelled out within Jacobs' declaration, in which he specifically cites that, "Client has breached the terms of the legal services agreement between attorney and client making it impossible for attorney to continue to represent client" and "Irreconcilable differences have arisen between client and attorney making it unreasonably difficult for counsel to carry out his representation of the client effectively". Translation: "the client is dirty and I want no part of it."

Paul Jacobs' Declaration

Mr. Jacobs withdrawal is more big trouble for Corix and attorneys Devin Bone and Anthony Paesano. Bone will lose his pro hac vice status, and with it, the right to represent the defendants. He is unlikely to regain status, even if they are able to get a reputable California law firm to represent them. On the other hand, a reputable firm is unlikely to take this case, even if they are getting paid, so some sort of garbage can lawyer will need to be found.

The First Amended Complaint, which will be filed on Monday, will clearly spell out Bone's and Paesano's culpability in the conduct of Corix, Zarinegar, Ogburn, Froese and the other 15 defendants now named in the complaint. Furthermore, a motion seeking leave to depose Devin Bone is on the calendar for May 24th, and the moving papers also detail his contributions to the schemes of the defendants. A second motion, seeking leave to add Bone, Paesano and the Michigan firm as defendants will also be filed this week. This all adds up to the likely end of Bone's representation. You can thank me privately, Devin.

The loss of Jacobs and the likely removal of Devin Bone as counsel, means that the defendants will no longer have a law firm representing them that is probably working for free, now that Corix cannot sell any more stock. At least not to anyone with half a brain. While Jacobs would probably have quit anyway, once his bills stopped being paid, it's doubtful that the Paesano firm would have ever followed suit voluntarily, considering all the tracks that need to be covered. Furthermore, if the court grants my motion, Bone, Paesano and the firm will need to get their own representation. For that, they will have their insurance carrier to cover the costs, but the current defendants are on their own. Paesano's carrier had better get used to being a bank, because the firm is also facing a derivative suit for malpractice in the coming months, and, if Zarinegar, Ogburn, and Froese are smart, malpractice suits from them as well.

~ George