DANVILLE, Ill. – John Steele, a founding partner in notorious copyright-trolling law firm Prenda Law and now an adjudicated felon, was stripped of his law license Friday by the Illinois Supreme Court. According to court documents, Steele did not contest the disbarment.
The court acted on an ethics complaint the Illinois Attorney Registration and Discipline Commission filed against Steele in August 2015. The complaint minced no words, alleging misfeasance including fraud, shakedowns, deceit of clients and the courts, frivolous filings, misrepresentation, gross misconduct and contempt of court.
Steele had been licensed to practice law in Illinois since 2007.
The only surprise about the state supreme court’s ruling is that the process took so long. By the time the Illinois ARDC filed the complaint, Steele and his partner Paul Hansmeier already were well on their way to criminal indictments. During 2013, district courts cited and fined Prenda’s various corporate identities and both principals for shady tactics including what some courts characterized as extortion, conspiracy and racketeering. Courts also referred Prenda attorneys and firms to the U.S. Attorney’s office, the IRS Criminal Investigation Division, state bar associations and other prosecutorial and professional organizations for investigation of potential professional misconduct, identity theft, forgery and tax fraud.
Steele and Hansmeier were indicted in December 2016 on 18 federal charges apiece: one count of conspiracy to commit mail fraud and wire fraud, one count of conspiracy to commit perjury and suborn perjury, one count of conspiracy to commit money laundering, 10 counts of wire fraud and five counts of mail fraud.
In March, Steele pleaded guilty to felony charges of conspiracy to commit mail fraud and wire fraud, and conspiracy to commit money laundering. He faces a statutory minimum sentence of 40 years in prison, plus restitution of the $6 million he admitted the Prenda hydra of companies gained through illicit activities. The court has broad discretion in sentencing, though, and since Steele has agreed to testify against Hansmeier, he may well receive a significantly reduced sentence.
Hansmeier has pleaded not guilty and awaits a trial date. The Minnesota Supreme Court disbarred him in September 2016.
