The ultimate sanction of disbarment has been imposed on California attorney David Leon Speckman for severe and repeated misconduct in the United States Bankruptcy Court. Effective September 17, 2025, the California Supreme Court ordered Speckman’s name to be permanently removed from the roll of attorneys.
The disbarment (Case No. S292168) stems from a devastating pattern of ethical and fiduciary violations in Chapter 13 bankruptcy cases, including conflicts of interest and misrepresentations to the court.
The Core Misconduct: Conflicts and Deceit in Bankruptcy
Speckman’s career-ending discipline was triggered by a complaint from the Acting United States Trustee, citing his actions while representing three clients in bankruptcy proceedings:
-
Undisclosed Conflicts of Interest: Speckman failed to disclose property transfers and other transactions involving his clients and Prado Investments, LLC, a company managed by his wife.
-
Self-Dealing: He drafted agreements for two debtor clients to sell their homes to Prado Investments during their Chapter 13 bankruptcies without seeking court authorization.
-
Filing False Documents: Speckman filed false and misleading documents that failed to disclose these property transfers to the Bankruptcy Court, concealing the conflict of interest and the transactions with his wife’s company.
-
Failure to Disclose Compensation: He was also cited for failing to disclose the compensation he received and for charging unreasonable fees.
In February 2024, facing the overwhelming evidence, Speckman entered a stipulated federal judgment agreeing to a permanent ban from practicing law in the United States Bankruptcy Court for the Southern District of California and paying monetary sanctions of $3,500.
The Final Sanction: Permanent Disbarment
The California State Bar Court found that Speckman’s misconduct in federal court warranted discipline under state law, specifically citing misrepresentations and omissions of material facts in court filings.
-
Aggravating Factors: The Court cited several factors justifying the maximum penalty:
-
Prior Discipline: Speckman had a prior disciplinary record stemming from a conviction for filing a fraudulent insurance claim in Nevada.
-
Multiple Acts/Pattern of Misconduct: The misconduct involved a pattern of misrepresentations and conflicts of interest across multiple client matters.
-
-
The Ruling: The California Supreme Court accepted the stipulation for disbarment, permanently removing him from the practice of law.
In addition to disbarment, the Court ordered Speckman to pay monetary sanctions totaling $3,000 to the State Bar Client Security Fund.
Conclusion: Integrity Is Non-Negotiable
The disbarment of David Leon Speckman delivers an unequivocal message: attorneys operating in specialized fields like bankruptcy must uphold the highest standards of candor and fiduciary integrity. His willingness to use his legal position for self-dealing, coupled with misrepresenting facts to a federal court and concealing conflicts of interest involving his own family’s business, constituted a profound betrayal of his clients and the judicial system.
Speckman’s permanent removal from the Bar protects the public from an attorney who demonstrated a persistent and uncorrectable pattern of dishonesty and conflict of interest, ensuring that the critical function of the bankruptcy court is not compromised by fraud.