Barleta v. Schein

CourtDistrict Court, S.D. Florida
DecidedSeptember 22, 2025
Docket1:23-cv-23422
StatusUnknown

This text of Barleta v. Schein (Barleta v. Schein) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barleta v. Schein, (S.D. Fla. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 23-23422-CIV-ALTONAGA/Reid

JOSEPH COLE BARLETA,

Plaintiff, v.

BETTINA SCHEIN,

Defendant. ___________________________/ ORDER

THIS CAUSE came before the Court on Defendant, Bettina Schein’s Motion for Final Summary Judgment [ECF No. 93], filed on July 21, 2025. Plaintiff, Joseph Cole Barleta filed a Response [ECF No. 96]; to which Defendant filed a Reply [ECF No. 97]. The Court has considered the record, the parties’ submissions,1 and applicable law. For the following reasons, the Motion is denied. I. BACKGROUND This action stems from alleged legal mis-advice Defendant provided to Plaintiff about entering into a consent agreement with the Securities and Exchange Commission (“SEC”) before trial. (See Def.’s SOF ¶¶ 3–7; Pl.’s Resp. SOF ¶¶ 3–7 (all disputed on other grounds)).2

1 The parties’ factual submissions include Defendant’s Statement of Material Facts [ECF No. 92] (“Def.’s SOF”) and Plaintiff’s Response to Defendant’s SOF (“Pl.’s Resp. SOF”) [ECF No. 95].

2 While Plaintiff designates many facts as “disputed” in his Response Statement of Facts, his disputes are frivolous and unsupported. (Compare Def.’s SOF, with Pl.’s Resp. SOF). For example, Defendant details a string of indictments against Plaintiff, with citations to corresponding court documents. (See Def.’s SOF ¶¶ 17–18). Plaintiff marks these facts as disputed — but responds with conclusory and irrelevant comments, rather than record evidence contradicting Defendant’s citations. (See, e.g., Pl.’s Resp. SOF ¶ 18 (“Disputed . . . [e]ssentially, Cole was charged with more crimes than Al Capone was charged with[.] (alterations added))). Shame on Plaintiff’s counsel for the hyperbole and unsupported attacks in the Response SOF. Nevertheless, the Court does not strike the filing because its defects do not alter the outcome of the Motion. The SEC Case and Consent Decree. On July 14, 2020, the SEC filed a civil complaint against Plaintiff, alleging seven violations of the Securities Exchange Act, including fraud and sales of unregistered securities. See Sec. and Exch. Comm’n v. Complete Bus. Sols. Grp., Inc., No. 20-cv-81205 (S.D. Fla. 2025); (see also Def.’s SOF ¶¶ 1–2; Pl.’s Resp. SOF ¶¶ 1–2; see also id.,

Ex. A, SEC Am. Compl. [ECF No. 95-1] ¶¶ 268–89). Plaintiff retained Defendant as his counsel to defend him against the allegations. (See Def.’s SOF ¶ 3; Pl.’s Resp. SOF ¶ 3 (disputed on other grounds)). As trial approached, Defendant urged Plaintiff to sign a consent agreement (the “Consent Decree” or “Decree”) — describing it as a “no admit – no deny” agreement that would not lead to liability under the Securities Exchange Act. (Second Am. Compl. (“SAC”) [ECF No. 19], Ex. G., Email Chain [ECF No. 19-7] 5; see also Def.’s SOF ¶¶ 5–7, 10–11; Pl.’s Resp. SOF ¶¶ 5–7, 10– 11 (all disputed on other grounds)).3 Defendant warned Plaintiff that if he did not sign the agreement, the judge was inclined to grant summary judgment on at least one count — and trial would require significant additional fees and time because Plaintiff’s co-defendants had already

settled claims brought against them. (See Def.’s SOF ¶¶ 5–6, Pl.’s Resp. SOF ¶¶ 5–6 (all disputed on other grounds); Email Chain 5–6). In a November 28, 2021 email, she reiterated her advice and told Defendant that signing the Decree would resolve the case with “no judgment and no finding of liability of any kind” — whereas rejecting the agreement risked adverse findings that could lead to liability, higher disgorgement damages, and collateral suits. (Email Chain 1 (emphasis in original); see also Def.’s SOF ¶ 5; Pl.’s Resp. SOF ¶ 5 (disputed on other grounds); id. ¶ 7).

3 The Court uses the pagination generated by the electronic CM/ECF database, which appears in the headers of all court filings. Citations to transcripts of court proceedings rely on the pagination and line numbering in the original document. Plaintiff signed the Consent Decree later that day. (See Pl.’s Resp. SOF, Ex. B, Consent Decree [ECF No. 95-2] 7). By doing so, he waived the right to appeal, consented to entry of judgment and disgorgement, and deemed the allegations of the SEC Complaint true for the purpose of any disgorgement motion filed by the SEC in the civil lawsuit. (See id. ¶¶ 5, 7, 13; see also

Def.’s Resp. SOF ¶¶ 8–11; Pl.’s Resp. SOF ¶¶ 8–11 (all disputed on other grounds); id. ¶ 6). The court approved the Consent Decree and entered a Final Judgment, ordering Defendant to pay disgorgement damages of $10,810,150.32 and a civil penalty of $1,330,000. See generally SEC v. Complete Bus. Sol. Grp., et al., No. 20-cv-81205, J. of Perm. Inj. . . . [ECF No. 1018], filed Nov. 28, 2021 (S.D. Fla. 2021); SEC v. Complete Bus. Sol. Grp., et al., Final J. [ECF No. 1434], filed Oct. 24, 2022; (see also Def.’s SOF ¶¶ 8, 12; Pl.’s Resp. SOF ¶¶ 8, 12 (both disputed on other grounds)). Plaintiff unsuccessfully challenged the Final Judgment on appeal to the Eleventh Circuit.. (See Def.’s SOF ¶¶ 13–14, 16; Pl.’s Resp. SOF. ¶¶ 13–14, 16). The Criminal Suits. Following resolution of the SEC case, Plaintiff was indicted and pleaded guilty to RICO conspiracy with predicate acts of securities and wire fraud. See generally

United States v. Barleta, No. 23-198-cr, Dkt. (E.D. Pa. 2025); (see also Def.’s SOF ¶¶ 22–28; Pl.’s Resp. SOF ¶¶ 22 (disputed on other grounds), 23, 24–25 (disputed on other grounds), 26, 27 (disputed on other grounds), 28). He was sentenced to 66 months in prison and ordered to pay $302,700,484.60 in restitution, jointly and severally with at least one co-defendant. (See Def.’s SOF ¶¶ 33–34; Pl.’s Resp. SOF ¶ 33 (disputed only to note the restitution payment was joint and several), 34; see also Def.’s SOF, Ex. 6, Transcript of Sentencing Hearing (“Sentencing Tr.”) [ECF No. 92-6] 147:24–25 (stating the total restitution number is joint and several with another defendant)); see also United States v. Barleta, Criminal J. 9 [ECF No. 350] filed June 2, 2025 (stating one defendant as jointly and severally responsible with Plaintiff for the full amount and another jointly and severally responsible with Plaintiff for a partial amount). At Plaintiff’s change-of-plea hearing, the Government advised the court that the parties agreed “any payment [Plaintiff] makes in that SEC case, which we understand would ultimately

be the [sic] benefit of the same pool of victims in our case, would be credited against any restitution in [the criminal] case.” (Def.’s SOF ¶ 32 (alterations added; quotation marks and citation omitted); see Pl.’s Resp. SOF ¶ 32 (disputed on other grounds)). At Plaintiff’s sentencing hearing, the court acknowledged part of the plea agreement — informing Plaintiff that “the money collected by the [SEC] in the Southern District of Florida” would be credited toward restitution in the criminal case. (Def.’s SOF ¶ 34 (alteration added; quotation marks omitted; quoting Sentencing Tr. 12:24– 13:1); see Pl.’s Resp. SOF ¶ 34). Plaintiff’s Claim and Defendant’s Motion. In the SAC, Plaintiff raises a single claim of legal malpractice. (See generally SAC). He asserts that Defendant breached her duty of care by misrepresenting the effect of the Consent Decree — causing Plaintiff to sign the Decree rather than

proceed to trial and to incur losses: the civil judgment of over 12 million dollars, a preliminary injunction freezing Plaintiff’s accounts, and “a public record and order [in the civil case] holding that [Plaintiff] has admitted to all of the SEC’s allegations[.]” (SAC ¶ 23 (alterations added); see also id. ¶¶ 12–18). Defendant moves for final summary judgment, arguing the undisputed facts show Plaintiff cannot establish the elements of his claim, and the claim is barred by collateral estoppel and the doctrine of unclean hands. (See generally Mot.).

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