The loss triggers a remedy, which includes an injunction to stop additional sales of the stolen goods and to refund money to every customer who purchased them. Feldman’s customer must replace any stolen goods in his remaining inventory and make a profit. Other compensation including interest may also have to be paid. ARS could not immediately reach the plaintiffs’ attorney to discuss the restraining order or consequential measures.
Fella emphasized in his order that it appeared Feldman did not appreciate the “seriousness of the situation” by repeatedly submitting filings with fake citations, even though he was warned that sanctions could be ordered.
This was a choice, Fella said, noting that Feldman’s mistakes were quickly caught by an attorney working for another defendant in the case, Joel McMull, who urged Feldman to immediately notify the court. McMull suggested at the hearing that the entire debacle would have ended in June 2025.
However, instead of taking McMull’s advice, Feldman delayed informing the court, angering the judge. He testified during a heated sanctions hearing that the delay was caused by an effort he had made to quietly correct the filing. He reportedly planned to submit those corrections when he alerted the court to the errors.
But Fela said he never presented a correction, instead insisting that Feldman kept him “in the dark.”
The judge said, “There is no real reason why you should have hidden this from me.”
The court became aware of the fraudulent citations when McMull informed the judge by sharing emails about his efforts to get Feldman to take immediate action. Those emails showed Feldman scolded McMull for unprofessional conduct after McMull refused to check Feldman’s citations for him, which Fella noted at the hearing was absolutely not McMull’s responsibility.
Feldman told Fella that he also felt it was unprofessional for McMull to share their correspondence, but Fella said the emails were “enlightening.”
At the hearing, McMull asked if the court would allow him to pay his fees, because he believes “there have been a number of proceedings here that would have been completely unnecessary if Mr. Feldman had done what I asked him to do on that Sunday night in June.”
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