Color coded chart showing the chronology of certain instances of Attorney Misconduct with hyperlinks within the Revised Complaint.

The conflict of interest involves Argo Partners, a bankruptcy claims trader which purchased a claim from Center Capital Corp., and the California law firm Hennigan, Bennett, & Dorman ("HBD"). This law firm simultaneously represented as debtor's counsel the public company Aureal, Inc. as well as their most significant creditors Argo Partners and the hedge fund Oaktree Capital.

HBD objected to and won the complete disallowance of the Center Capital claim.  However, HBD later realized that the claim was one of the claims purchased by their conflicting client Argo Partners. Even though the 10 day period elapsed after the Court's final order which disallowed Argo's claim, this law firm side stepped the unappealable final order and pushed a stipulation paying their adverse client Argo on the full amount of the already expunged claim.

The bankruptcy estate of Aureal Inc. thus paid for the disallowed claim owned by Argo, plus all of the legal fees of HBD as they obtained the disallowance of the claim, and then paid even more: once HBD learned that the claim was owned by Argo there were additional legal fees for HBD as they sought to get around the disallowance of the claim.