Attorneys generally get a bad reputation from those who think they’re motivated too much by money and not enough by serving their clients, but according to a recent indictment against Paul Hansmeier and John Steele, these two attorneys were allegedly using the courts to extort money from their opponents, rather than their clients.
The two attorneys attended the University of Minnesota Law School together, and while Hansmeier still lives in Minnesota, Steele is licensed in Illinois. According to the indictment, the two attorneys allegedly created sham companies in 2010, which they used to acquire the rights to certain pornographic films, some of which they made themselves. Then Steele and Hansmeier allegedly uploaded their copyrighted porn to file-sharing websites, knowing people would download their porn. Steele and Hansmeier would then file a copyright lawsuit against the individual on behalf of their “clients” – which were, in fact, the companies they themselves owned.
Then Steele and Hansmeier would allegedly petition the courts to require internet service providers to provide the identities of the people who had downloaded the porn. Once they had acquired those identities, the attorneys allegedly offered to settle the lawsuit for about $4,000. The alternative was to face public exposure and fines that could potentially get as high as $150,000. Many of their victims were either too humiliated and/or financially incapable of dealing with the lawsuit, so they often accepted the settlement offer. Continue reading