A prominent Atlanta real estate law firm that has been mired in litigation over millions of dollars in missing money has filed for bankruptcy protection.
Morris Schneider Wittstadt, formerly known as Morris Hardwick Schneider, on Sunday sought Chapter 11 protection from its creditors in U.S. Bankruptcy Court in Richmond, Va.
The filing follows a raft of legal action and an extraordinary lawsuit that included allegations that a founding partner embezzled money.
The firm has been embroiled in controversy since August 2014 when founding partner Nathan “Nat” Hardwick IV was accused by the firm in a lawsuit of embezzling $30 million from escrow and other accounts controlled by the firm and related title company LandCastle Title.
Hardwick has denied the accusation.
As Morris Hardwick Schneider, the firm grew to offices in 13 states with 150 lawyers and 700 staffers. The firm and LandCastle handled tens of thousands of transactions annually from Florida to Delaware.
The firm now is a shadow of its former self, according to court filings, with only five lawyers and 31 staffers as of Sunday’s petition.
Since the initial embezzlement allegations against Hardwick were made public, MSW has seen business fall off and been involved in lawsuits across the country, including one brought by professional golfer Dustin Johnson. Johnson is seeking repayment of $3 million allegedly loaned to the firm.
A status hearing in bankruptcy court was scheduled for 1 p.m. today.
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