From the annals of "You Scratch My Back, I’ll Scratch Yours" comes this report from Spokane, Washington, where a retiring judge and former state lawmaker is being accused of using his influence to help a former employer — Valley Empire Collection — to millions of dollars in collections.
 
Is it wrong?  District Court Judge Mike Padden feels that the fraternization merely gives the appearance of a conflict.  The Spokesman-Review, however, is arguing things a little differently.
 
The paper feels, after reviewing a series of interviews and legal documents (insert "The Paperchase" theme song here), that they have uncovered a pattern of favoritism that helped funnel more than $7.5 million in fees and interest payments into the collection agency’s coffers since 2003, which were the most recent figures provided by the court.

Some of the charges that the paper is throwing Padden’s way:

  • In 1995, while serving in the Legislature and working as an attorney for Valley Empire Collection, Padden co-sponsored a bill, later made law, that allows collection agencies to automatically add a $125 attorney fee to any contested collections case against individuals who bounced checks.
  • Four years later, after being appointed District Court judge, Padden successfully advocated hiring Valley Empire Collection to handle collections of past-due District Court accounts despite objections from half of the six-person selection panel. Of the 10 bids submitted, eight agencies would have charged lower fees than Valley Empire.
  • In 2001, Padden’s son accepted a paid internship from Peterson Enterprises, which owns Valley Empire Collection. The following year, Padden voted with other judges to expand Valley Empire Collection’s business by awarding it a second contract to handle all Municipal Court collections as well.

The full article is available here.


Next Article: California County Sending Collectors After Business Dues

Advertisement