Attorney in Herald Condo Sale Case Loses License on His Own Request

Legal Consequences and Controversial Practices

A former Hollywood attorney, known for his unique method of acquiring condominiums in foreclosure, has lost his law license. This decision came after a series of investigations and complaints that led to the Florida Bar taking action against him. The lawyer, Brad Schandler, actively sought disciplinary revocation, which effectively results in disbarment.

Disciplinary revocation is a process that allows a lawyer to be removed from the bar for a specific period. In Schandler's case, he will be barred from practicing law for five years. After this time, he may apply for readmission on July 3, 2030. However, this process comes with several financial obligations. He must pay an administrative fee of $1,250, along with potential costs associated with the Bar auditor and investigator. Additionally, he will need to reimburse the Client Security Fund for any payments made to clients due to his actions.

In exchange for this revocation, all pending investigations and grievances against Schandler will be dismissed. It is important to note that this does not affect any civil or criminal cases related to the actions under investigation. This type of revocation is often used by lawyers nearing retirement or those who no longer wish to practice law. It can also be a strategic move for those anticipating suspension or disbarment through a more extended disciplinary process.

Hernando Posse, who filed a complaint against Schandler, expressed frustration over the outcome. Posse claimed that he was outbid for a two-bedroom unit in Pompano Beach's Emerald Tower. Initially, the Bar closed the complaint without action, but it was reopened following reporting by the Miami Herald in 2024. Posse criticized the system, stating, "This is incredible... how corrupt the whole system is."

Controversial Foreclosure Tactics

Schandler described his approach as an "alternative, legal foreclosure method" for purchasing condos with existing foreclosure judgments, overdue maintenance fees, or unpaid assessments. In his petition for disciplinary revocation, he detailed how he worked with various companies to buy these judgments from condominium associations. He then requested changes to auction rules, allowing for public auctions at the actual property instead of online. Additionally, if the highest bidder failed to pay, the auction would not need to be repeated.

This strategy enabled Schandler's clients to acquire properties, typically for $100. According to Posse, Schandler's sister allegedly outbid him using a fake name and then intentionally did not pay. Under the auction rules Schandler had the court approve, the property was sold to a company controlled by Schandler. Quit claim deeds were used to transfer ownership through several entities connected to Schandler or his associates for $100 per change.

Broward County records indicate that a company affiliated with one of Schandler's associates eventually sold the unit to a couple for $525,000. Schandler's petition stated that according to Posse and a Miami Herald article published on April 2, 2004, the changes in auction rules allowed his clients to obtain properties for less than they would have sold for in a normal online auction.

The Bar's Board of Governors Executive Committee approved Schandler's petition on June 23, and the state Supreme Court followed suit on July 3. This decision marks a significant end to Schandler's legal career and highlights the complex issues surrounding real estate and legal practices in the foreclosure market.