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Forged Affidavit Leads to Default in Sexual Harassment Case
Trial will focus on damages after judge finds litigation misconduct
Fulton County Daily Report
October 12, 2009
A federal judge has handed down what he called "the ultimate sanction" for litigation misconduct against an Alpharetta, Ga.-based mortgage company and its chief executive officer, issuing a default verdict in favor of a former employee who claimed the CEO had sexually harassed and assaulted her.
U.S. District Senior Judge J. Owen Forrester issued the ruling against James Pefanis and his company, AME Financial Corp.
Forrester determined that the defendants had presented as evidence a fabricated affidavit with the forged signature of a former employee. The defense had identified the affidavit as key to Pefanis' case because it contradicted former AME account executive Evangelina "Hope" Forsberg's claim that Pefanis had groped her in front of witnesses at work.
"The use of a forged document in defense of a lawsuit prejudices both the opposing party and the judicial system itself," wrote Forrester.
A jury trial, scheduled to begin Tuesday, will now focus only on how much in damages the defendants should pay Forsberg.
"Obviously, we are pleased the court reached the decision it did and found clear and convincing evidence the document was forged," said Atlanta attorney Benjamin Stone, who, with partner Thomas Munger, represents Forsberg. "We are very much looking forward to the damages phase of this trial and putting this matter to rest."
David C. Ates, who is defending Pefanis and AME Financial Corp., did not return messages left via voice mail, e-mail and with his secretary.
The default verdict is the latest example of Forrester's displeasure with what he has said from the bench are "matters of honesty that concern the court" in the Forsberg case and a separate sexual harassment case brought by another former employee, Damon Smith, who is also represented by Munger and Stone.
Atlanta real estate lawyer Ron D. Eckland -- who identified himself in a court hearing as Pefanis' longtime business partner and roommate -- is facing mounting fines after Forrester found him in contempt of court for repeatedly ignoring civil subpoenas and court orders to turn over real estate records of property transfers Pefanis had made to Eckland on the day before he was to be deposed in the Forsberg case. Forrester began fining Eckland, owner of Atlanta Real Estate Law Group, $150 a day following a court hearing Sept. 30.
Forrester warned Eckland bluntly that if he didn't comply with a court order to turn the requested records over to opposing counsel, "We can change the fine to prison if we have any more problems."
Eckland, a graduate of the University of Nebraska law school who was admitted to the State Bar of Georgia in 1990, did not respond to requests for comment made via e-mail and his law office voice mail.
The judge also warned Ates, who also represented Eckland in the contempt matter, that if any of the allegations by the plaintiff's lawyers that Pefanis, his associates and his lawyers have been less than truthful, "I will turn it over to the U.S. Attorney, and their next questions will be from an FBI agent."
During the hearing, Forrester also found in contempt Pefanis' accountant for failing to turn over financial information such as AME Financial Corp. audits and Pefanis' tax returns.
Forrester began fining accountant Lewis Jeffries $500 a day and threatened to jail him if Jeffries did not comply with a court order to produce the documents. "I don't have any reason to suppose Mr. Jeffries has taken any of this very seriously," Forrester said in the Sept. 30 hearing. "It's pretty clear he hasn't."
Forrester warned Jeffries that if he didn't begin producing the requested financial statements and audits by a scheduled Oct. 6 hearing, he had "better bring [a] toothbrush" because he would to jail. Last week, Jeffries retained counsel and began providing the information.
