Hattiesburg attorney Corey Ferraez will get to sleep in his own bed tonight after Perry County Chancellor Sheila Smallwood released him from house arrest today.
Sylvia Weatherford's husband, Stephen, died in an automobile accident. Ferraez represented the widow in a wrongful death lawsuit. The insurance company settled for $450,000 and sent a check to the attorney.
Time passed yet Sylvia received no funds. A nearly destitute Sylvian Weatherford was forced to obtain pre-settlement loans which are typically at high interest amounts. Unable to repay, the interest costs grew.
Although Judge Smallwood scheduled hearings, Ferraez repeatedly blew them off. She sent him a zoom link so but he said he could not participate due to spotty cellphone service. An exasperated Chancellor ordered the lawyer to deposit the $450,000 settlement with the Court and appear at a hearing on June 16.
June 16 came and went with no deposit nor appearance. The Court ordered the attorney's arrest on June 19. Ferraez stayed on the lam until he surrendered last week. Judge Smallwood ordered his immediate incarceration.
Ferraez deposited $215,000 with the Court and said he withheld the remainder to cover his attorney's fees. Judge Smallwood wasn't buying it as she pointed out an earlier order directing him not to do so. She said he still owed $195, 168.
Ferraez spent ten days in the Perry County jail. Judge Smallwood softened his incarceration by releasing him to house arrest with some conditions.
The final accounting of the estate reduced the amount Ferraez owed to $48,037. The attorney will remain on house arrest for 30 days or until he pays $48,037. If 30 days passes with no payment, Corey Ferraez will return to the Perry County jail.
The Court approved distribution of the estate:
Will the attorney pay up? Stay tuned.
Synopsis of The Corey Chronicles
A Forrest County grand jury indicted attorney Corey Ferraez in October 2021 for embezzlement by attorney, conspiracy to obtain signature with intent to defraud, and mail/wire fraud. Corey's twin brother Jace was also indicted for conspiracy to obtain signature with intent to defraud.
The story begins when Corey was a partner at the Holmes, McLelland, & Farraez law firm. As so many lawyers do, Corey and his firm divorced. The lawyer was "obligated to pay the firm, now McHard, McHard, Anderson, and Associates, PLLC 20% of all attorneys fees in cases included in the settlement agreement.
The list of cases included the representation of Shawn Vaughn. Corey represented Vaughn in a personal injury lawsuit as well as her Chapter 13 bankruptcy petition. Corey settled Vaughn's lawsuit for $650,000. The attorney's fees were $260,000. Thus Corey allegedly owe $52,000 to his former firm. However, the indictment claims he had other ideas.
Count I accuses Corey of filing a bogus lien against the bankruptcy estate on behalf of MMAA for $52,000 in March 2020. The bankruptcy court approved payment of the lien. Thus Corey managed to pay his former law firm by sticking his client with the bill, forcing her to pay $312,000 in attorney's fees.
Ferraez's problems with the legal system were only just beginning. The grand jury indicted him in a separate case in October 2021 for four counts of embezzlement. Earlier post
The indictments have a rather curious history. All twelfth circuit court judges recused themselves. The Mississippi Supreme Court appointed Special Circuit Judge Forrest Johnson to hear the case. The Court appointed then-Fourteenth District Attorney Dee Bates to prosecute both cases. However, Bates retired and the current District Attorney, Brendan Adams, withdrew from the case in April 2024, claiming his caseload was too great.
Judge Johnson directed Forrest County District Attorney Lin of the Clan of Carter to appoint a special prosecutor. However, Carter never got the order. The problem was rectified last week when he appointed Rankin-Madison District Attorney Bubba Bramlett to prosecute the case.
Ferraez got into more trouble in Perry County Chancery Court . The attorney represented Sylvia Weatherford in a wrongful death lawsuit after her husband died in an automobile accident. The insurance company paid $450,000 to Ferraez and settled the case. However, the lawyer inexplicably did not turn over any funds to his client, forcing her to take out high-interest pre-settlement loans. Ferraez repeatedly blew off hearings until Chancellor Sheila Smallwood ordered them to appear at a show-cause hearing and deposit $450,000 with the Court.
Ferraez ignored the hearing so Judge Smallwood ordered his incarceration on June 16. Ferraez was a fugitive until a week ago when he surrendered. While on the lam, he deposited $215,000 with the Court, claiming he took out his attorney's fees.
The Chancellor admonished him in court last week as she called out his lies. The Court earlier ruled Ferraez could not pay himself his fees until they were approved by the Court, which did not happen. The Chancellor said Ferraez still owed $195,168. The lawyer and antique enthusiast claimed he could not access his bank account as the bank had closed it dues to media scrutiny. Judge Smallwood did not allow him to pass go and sent him straight to jail. Ferraez filed a notice of appeal to the Mississippi Supreme Court, protesting his incarceration. Earlier post.
Julia Bullock, a former Ferraez client, sued the attorney in Forrest County Circuit Court on June 30. The plaintiff was injured in a car wreck. State Farm paid $140,000 to Ferraez on behalf of his client in late 2023. The complaint claims Ferraez withheld $25,000 from the client despite repeated assurances he would forward the proceeds. Ferraez made two partial payments of $6,500 but Bullock says he still owes her $18,500. Earlier post.
More clients are expected to file lawsuits against Ferraez.
13 comments:
I see Judge Smallwood’s order states the payment must be made by cashier’s check.
Where is the Bar?
Am I misunderstanding what it says about house arrest? Can he go anywhere as long as he stays in Mississippi?
Where is the Bar you ask??
SET REALLY LOW !
They had to let him go because he was crying so loud at night the jailers couldn’t sleep! Now that’s what I heard!!!
Got to go the psych wards calling!
Oh look, his "appeal" is about to be mooted out before a decision is even rendered. Who could have ever guessed?
House Arrest is for someone compliant with the Rule of Law. Not those who seek to exploit it.
@thelaw: can you explain how his appeal will be mooted? I am not an attorney.
I smell parental money spending big dollars for some big lawyering behind the scene....this makes zero sense.
looks to me he has 30 days to get himself snuck out of the country as ankle bracelets are easy to defeat/get around!
@6:57: cases become moot when there's no longer a live dispute. Usually occurs where the remedy being requested can no longer be awarded. Example where case is moot: landlord sues to have tenant evicted, and tenant leaves before court orders them out. No need for an eviction order when tenant is already gone, eh? Example where case is not moot: landlord sues to have tenant evicted and also seeks back rent. Assuming tenant leaves, case ain't moot yet because landlord is still seeking something the court can award him (back rent). In Cory's case, he's trying to appeal the order that threw him in jail, and now he's out of jail on house arrest. No need to ask to be released from jail when you're out of jail, right? Now before the other attorneys come at me in this, I'm using the term "moot" loosely. There's still live issues (e.g., house arrest). There are also exceptions to the mootness doctrine even when a case is deemed moot. So I'm not using the term in the pure legal sense. I mean, based on Judge Smallwood's revised Order, it sounds like they're coming to a resolution on this particular contempt issue (not the many other issues he's facing). Ergo, appeal may be dismissed—or he may choose to voluntarily dismiss the appeal—before a decision is even rendered.
I predict that former House member Jeff Smith will get involved. Remember Smith endorsed Corey for the House seat in Hattiesburg when Toby Barker was elected mayor!
@thelaw: Thank you for that explanation. Makes perfect sense now. You are very informative.
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