Kenneth N. Whitehurst, III, Esq., AUST, VSB No. 48919

Cecelia Ann Weschler, Esq., VSB No. 28245

Nicholas S. Herron, Esq., NJSB No. 03007-2008, PASB No. 208988

Office of the U.S. Trustee

200 Granby Street, Room 625

Norfolk, VA 23510

(757) 441-6012

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Norfolk Division

In re:

Isaac William Kyser

Angela Nicole Kyser,

Debtors.

Case No. 17-72703-FJS

Chapter 7

 

Judy A. Robbins, APN

United States Trustee

for Region Four,

 Plaintiff

 v.

Anthony Gill,

 Defendant.

______________________________________________________________

COMPLAINT SEEKING FINES, DISGORGEMENT AND FORFEITURE OF 

COMPENSATION, AND INJUNCTIVE RELIEF PURSUANT TO 11 U.S.C. § 110 

Plaintiff, Judy A. Robbins, United States Trustee for Region Four, by counsel, for her 

Complaint against Anthony Gill (Gill or Defendant), pursuant to 11 U.S.C. § 110, states:

Jurisdiction, Venue, and Standing

1. This Court has jurisdiction to hear this matter pursuant to 28 U.S.C. §§ 157(a) and

1334 and 11 U.S.C. § 110. This is a core proceeding under 28 U.S.C. § 157. 

2. Venue is proper pursuant to 28 U.S.C. § 1409(a) and 11 U.S.C. § 110(j)(1). The

United States Trustee has standing to be heard pursuant to 11 U.S.C. §§ 110(j)(1) and 307.

3. This Complaint seeks injunctive relief, imposition of fines, and other remedies 

pursuant to 11 U.S.C. § 110 and Fed. R. Bankr. P. 7001. 

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The Parties

4. Plaintiff, Judy A. Robbins, is the United States Trustee for Region Four, duly 

appointed under 28 U.S.C. § 581(a)(4). The United States Trustee Program is a component of the 

Department of Justice which oversees the administration of bankruptcy cases and private trustees 

under 28 U.S.C. §586 and 11 U.S.C. §101, et seq. The U.S. Trustee enforces the provisions of 11 

U.S.C. § 110 governing bankruptcy petition preparers.

5. Defendant, Anthony Gill is an individual who resides in and, at all times material 

herein, conducted business in the Eastern District of Virginia. 

6. On information and belief, Defendant is not an attorney licensed to practice law in 

the Commonwealth of Virginia and is not a paralegal under the supervision or control of a 

licensed attorney.

7. The debtors, Isaac and Angela Kyser, reside in Portsmouth, Virginia.

Factual Background

8. Mr. Kyser saw a flyer advertising Gill’s bankruptcy and other legal services in 

the locker room of his place of employment, and because Mr. Kyser and his wife were 

experiencing grave financial troubles, he took the flyer and contacted Gill. 

9. The Kysers provided Gill with various bills and other financial documents, and 

using them, Gill prepared “documents for filing” for the Kysers within the meaning of 11 U.S.C. 

§ 110. 

10. Defendant operated as a bankruptcy petition preparer, and is a “bankruptcy 

petition preparer,” within the meaning of 11 U.S.C. § 110.

11. Gill charged the Kysers $700 for his services, and they paid him $350 in cash

initially. A copy of the receipt the debtors received from Gill is filed herewith as Exhibit A. 

They later paid Gill another $100 in cash.

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12. Gill gave the Kysers a business card in which he refers to himself as Anthony 

Gill, Esq. A copy of the business card is filed herewith as Exhibit B.

13. Defendant did not sign or place an identifying number or print his name and 

address on the bankruptcy documents he prepared for the debtors.

14. Defendant did not identify himself as a petition preparer on any document he

prepared for the debtors.

15. Upon information and belief, Defendant did not provide the debtors with the 

notice required by 11 U.S.C. § 110(b)(2)(A); he did not sign the notice under penalty of perjury

and did not file it with the bankruptcy documents filed in this case.

 16. Defendant did not file a declaration under penalty of perjury together with the 

petition, disclosing any fee received from or on behalf of the debtors within 12 months 

immediately prior to the filing of this case, and any unpaid fee charged to the debtors.

 17. Upon information and belief, Defendant offered the debtors legal advice, in 

violation of 11 U.S.C. §110(e)(2) and engaged in the unauthorized practice of law, by offering 

legal advice regarding bankruptcy procedures and rights, including, but not limited to,

determining how claims should be listed on the schedules, determining exemptions on 

Schedule C, determining how to deal with secured property, determining that a presumption of 

abuse did not arise, and giving advice about the Application to Waive Filing Fee. 

 18. Each instance of Defendant giving legal advice to the debtors is a violation of 

11 U.S.C. § 110(e)(2)(A).

 19. On information and belief, Gill used words similar to “legal” in his 

advertisements, including the business card he gave the debtors.

 20. On information and belief, Gill has prepared bankruptcy documents for other 

debtors for filing in the United States District Court for the Eastern District of Virginia, 

Norfolk and Newport News divisions, and failed to disclose his involvement as a petition 

preparer in those cases.

Violations of section 110 of the United States Bankruptcy Code

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21. Defendant failed to comply with the following provisions of section 110:

• (b)(1): failing to sign the bankruptcy documents and print on the bankruptcy 

documents his name and address;

• (b)(2)(B): failing to provide the debtors with the notice required by 11 U.S.C. § 

110(b)(2)(A) and failing to sign the notice under penalty of perjury and file it with the documents 

filed in the instant case;

• (c)(1): failing to place identifying numbers on the bankruptcy documents after 

the preparer’s signature;

• (e)(2): offering legal advice and engaging in the unauthorized practice of law; 

• (f): using words similar to “legal” in advertisements;

• (h)(2): failing to file a declaration under penalty of perjury disclosing any fee 

received from or on behalf of the debtor within 12 months immediately preceding the filing of 

the case; and

• (h) charging an excessive fee.

Fraudulent, unfair, and deceptive conduct

22. By providing legal advice to the debtors and holding himself out as an attorney, 

Defendant engaged in the unauthorized practice of law in violation of Virginia Code. Ann. § 

54.1-3904, violated Part 6, § 1(A) of the Rules of the Supreme Court of Virginia, and engaged in 

fraudulent, unfair, or deceptive conduct. 

23. By failing to disclose his participation in preparing bankruptcy documents for 

Mr. and Mrs. Kyser, Defendant engaged in fraudulent, unfair, or deceptive conduct.

Prior Order Entered Against Gill

24. On November 24, 2014, this Court entered an Order Granting Motion 

Seeking Fines, Disgorgement of Fees and Awarding Statutory Damages (“Prior Order”) against 

Gill, in Case No. 14-50882-SCS, and found the following:

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that Gill violated 11 U.S.C. § 110(b), (c),(d),(e), and (h) at least 10 times in this 

case; that Gill should be fined $500 for each violation of § 110(b),(c),(d),(e) and 

(h); and that, as required by § 110(l)(2)(D), Gill should be fined $5000, tripled to 

$15,000 because he did not disclose his identity as bankruptcy petition preparer. 

The Court further finds that Gill engaged in fraudulent, unfair, or deceptive 

conduct by engaging in the unauthorized practice of law and by failing to identify 

himself as a bankruptcy petition preparer in the documents he prepared for filing.

Prior Order, Docket # 28, filed herewith as Exhibit C. Accordingly, the Court imposed fines 

payable to the U.S. Trustee against Gill for his violations of 11 U.S.C. § 110, in the amount of 

$15,000 and further ordered that Gill immediately turnover to the debtor, Alex Edward Betts, 

fees in the amount of $700.00. The Court also awarded statutory damages in favor of the debtor 

and against Gill in the amount of $2,000, pursuant to 11 U.S.C. § 110(i)(1). Id.

25. In Case No. 14-50882-SCS, Gill filed a Response, stating, inter alia:

Response of Anthony Gill, filed in Case 14-50882-SCS, Doc 20.

26. Shortly after Gill’s filing, however, the debtor, Mr. Betts, filed a Response stating 

that Gill had not refunded any monies:

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Response of debtor, Alex E. Betts, filed in Case No. 14-50882-SCS, Doc 23, 9/30/14.

27. Gill has not complied with the Prior Order against him entered in Case No. 14-

50882-SCS, and is in contempt.

28. Gill has continually engaged in conduct described in subclause (I), (II), or 

(III) of clause (i) of section 110 of the Bankruptcy Code; an injunction prohibiting such 

conduct would not be sufficient to prevent Gill’s interference with the proper

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administration of title 11; Gill has not paid a penalty imposed under this section, and Gill has

failed to disgorge all fees ordered by the Court.

Assessment of Fines

29. Pursuant to section 110(l)(2), Defendant should be fined $500 for each failure to 

comply with subsections (b), (c), (e), (f), and (h), and he failed to comply with the provisions of 

section 110 at least twelve times. The Court should impose a total fine of $6,000.00.

Tripling of Fines

30. Pursuant to section 110(l)(2)(D), the fines assessed against Defendant shall be 

tripled because he prepared the debtor’s bankruptcy documents in a manner that failed to 

disclose his identity as bankruptcy petition preparer. The Court shall triple the fines to $18,000.

Fees to be forfeited or disgorged

31. Pursuant to section 110(h)(3)(B), Defendant should forfeit all fees charged in this 

case, because he failed to comply with sections (b), (c), and (e). 

32. In the alternative, $700 exceeds the reasonable value a petition preparer may 

charge for his services, and Gill should be ordered to disgorge all fees in excess of the amount 

this Court determines to be reasonable1

.

Injunction barring from Anthony Gill from Acting

 as a Petition Preparer (11 U.S.C. § 110(j))

33. On information and belief, Defendant prepared bankruptcy documents for other 

debtors, for compensation, for filing in the United States Bankruptcy Court for the Eastern 

District of Virginia, Norfolk and Newport News divisions, and did not disclose his participation 

as a petition preparer in any of the cases, among other violations of 11 U.S.C. § 110.

 1 This Court has previously permitted a bankruptcy petition preparer to charge $140 for lawful services. See In re: 

Latoya A. Cowell, Case No. 16-73949-FJS (Consent Order Regarding petition preparer, Eunice Murray entered 

February 9, 2017 ); In re Atiya Harpe, Case No. 10-71147-SCS (Consent Order entered October 13, 2010 regarding 

Bankruptcy Petition Preparer Adrienne Enjoli Via).

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34. By engaging in the unauthorized practice of law, and in the other activities set 

forth herein, Defendant engaged in fraudulent, unfair, or deceptive conduct in violation of 11 

U.S.C. § 110(j)(1) and (2).

35. Defendant has continually engaged in conduct violating 11 U.S.C. 

§§ 110(j)(2)(A)(i)(I) and (III); Gill has not paid a penalty imposed under this section, and Gill 

has failed to disgorge all fees ordered by the Court.

36. There is no adequate remedy at law to prevent Defendant from violating section 

110 in future cases. An injunction prohibiting Defendant from engaging in conduct in violation 

of section 110 would not be sufficient to prevent his interference with the proper 

administration of title 11. See 11 U.S.C. § 110(j)(2)(B).

37. The United States Trustee requests that this Court permanently enjoin Defendant

from acting as a bankruptcy petition preparer as authorized by 11 U.S.C. § 110(j)(2)(B). 

WHEREFORE, U.S. Trustee respectfully requests that this Court:

A. fine Defendant $500 for each failure to comply in the instant case with 11 

U.S.C. §§ 110(b)(1); 11 U.S.C. § 110(b)(2)(B); 11 U.S.C. § 110(c)(1); 11 U.S.C. § 110(e); 11 

U.S.C. § 110(f), 11 U.S.C. § 110(h); 11 U.S.C. § 110(h)(2); and 11 U.S.C. § 110(e)(2)(A), 

payable to the United States Trustee for deposit pursuant to 11 U.S.C. §110(l)(4)(A), for a total 

fine of $ 6,000 and triple the fine to $18,000 as required by 11 U.S.C. §110(l)(2)(D);

B. order the immediate forfeiture and turnover by Defendant of all fees 

collected from the debtors, pursuant to 11 U.S.C. § 110(h)(3)(B), or, in the alternative, order 

the immediate disallowance and turnover of all fees collected by Defendant to the extent the 

fees exceed the value of any services rendered during the 12-month period immediately 

preceding the date of the filing of the petition;

C. award statutory damages in favor of the Debtors, Isaac William Kyser 

and Angela Nicole Kyser, in the amount of $2,000, pursuant to 11 U.S.C. § 110(i)(1);

D. find Defendant in civil contempt for his violation of the Prior Order,

pursuant to 11 U.S.C. § 110(j)(3);

E. permanently enjoin Defendant from acting as a bankruptcy petition 

preparer;

F. award costs and reasonable attorney’s fees, as allowed by this Court; and

G. grant the U.S. Trustee such additional relief to which she may be entitled.

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Dated: September 8, 2017 Respectfully submitted,

Judy A. Robbins

UNITED STATES TRUSTEE 

REGION FOUR

By: /s/ Cecelia A. Weschler

 

Kenneth N. Whitehurst, III

Assistant U.S. Trustee

Cecelia A. Weschler

Trial Attorney

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