December 30, 1995|By Mark Hyman | Mark Hyman,SUN STAFF
Baltimore attorney Ira C. Cooke, who consistently has ranked among the state's highest-paid lobbyists, has filed for Chapter 13 bankruptcy, a move that could shield him from at least $146,000 in debts run up by two failed law firms.
Mr. Cooke filed his petition in U.S. Bankruptcy Court in Baltimore this week as one of his largest creditors, Provident Bank, was moving in. The bank recently had obtained a confessed judgment against Mr. Cooke in Baltimore City Circuit Court, a step toward collecting on the overdue loan.
By filing Chapter 13, Mr. Cooke blocks the bank from collecting the debts now. They could be wiped out if the court determines he does not have sufficient assets reachable by his creditors to pay them.
Mr. Cooke said he was left with no alternative.
"I had two law firms fold from under me. This is the result," said the lawyer, who listed assets of $455,950 and debts of $298,919.
Indeed, Mr. Cooke's debts stem mostly from the dissolution of the law firms, according to court filings.
In 1988, Mr. Cooke and seven law partners guaranteed a loan from Provident to their law firm, Melnicove, Kaufman, Weiner Smouse & Garbis. The firm suffered a much-publicized breakup, leaving Mr. Cooke with a $146,540 debt to Provident, according to court papers.
The bank is suing two other former partners in the Melnicove firm, Baltimore County Circuit Judge Robert E. Cahill Sr. and Louis Price.
A lawyer for Provident Bank declined to comment yesterday on Mr. Cooke's bankruptcy filing.
In addition to the Melnicove loan, Mr. Cooke guaranteed lease payments for another failed law firm in which he was a partner, Harlan, Birrane & Brattan. The extent of that debt to the landlord, Seven East Redwood Ltd. Partnership, and to his former law partners, is not disclosed in the bankruptcy filing.
Other debts listed in the court papers include bills to two Baltimore law firms, $9,589 to Murphy & Shaffer and $5,790 to Neuberger, Quinn, Gielen, Rubin & Gibber, according to court documents.
Lawyers at both firms were not available for comment yesterday.
Mr. Cooke, now a partner at Levin & Gann, P.A., listed significant assets in his bankruptcy petition, filed Dec. 26. They include a $225,000 home in Mount Washington, a 1993 BMW 530i sports car valued at $25,050 and $165,000 in a retirement account.
But those types of assets generally are not within the reach of creditors. Under bankruptcy rules, debtors are permitted to shield certain types of property, including funds in retirement accounts and their homes, when they are owned jointly by a husband and wife.
Still, Mr. Cooke's case is unusual because of his high-profile career as a lobbyist and his substantial income.
Through legal and lobbying work, he earned $215,000 in 1993 and $200,000 in 1994, according to court papers. In the filing, his 1995 earnings are estimated at $200,000.
In 1993, Mr. Cooke rated as the second-highest-paid lobbyist in the state. He reported having 27 clients and fees of $386,985, second only to the then-undisputed king of Maryland lobbying, Bruce C. Bereano.
Recently, Mr. Cooke has been a favorite lobbyist of supporters of legalized gambling in Maryland, and this year he reported
earning fees of $72,500 from casino interests.
