Wake Up Call: CFPB is Hiring Attorneys During Shutdown Layoffs

Welcome to Bloomberg Law’s Wake Up Call, a daily rundown of the top news for lawyers, law firms, and in-house counsel.

• The Consumer Financial Protection Bureau is hiring two appellate attorneys to bolster its legal defense amid mounting lawsuits and internal turmoil. An internal email announced the openings in the bureau’s Office of Litigation, as the agency faces significant staff losses—roughly 500 employees, including 90 enforcement attorneys—since acting Director Russell Vought took over in February. The hires come despite an ongoing union lawsuit and a government shutdown that has left most staff inactive but still on payroll, and as the government has started laying off employees. (American Banker)
• Brooklyn resident Pamela Brown says she lost more than $53,000 after her attorney, Daphna Zekaria, stole client funds and was later disbarred and convicted of taking nearly $400,000 from others. Despite extensive evidence that her escrow money went into Zekaria’s account, Brown has struggled to recover it as the Manhattan District Attorney’s Office failed to investigate her complaint, and as the state’s Lawyer’s Fund for Client Protection rejected her claim for lack of proof and a criminal finding. (New York Focus)
• A dispute between a large law firm specializing in workplace diversity training and investigations and one of its former lawyers has sparked a defamation lawsuit denying allegations of bullying and racism in the office. Bernardi Human Resource Law is suing one of its former lawyers, Lavinia Latham, for $1.75 million, alleging she defamed the firm by falsely accusing its leaders of racism and mistreatment in public statements and a Law Times article. (National Post)

Laterals, Moves, In-House

• Michelle Kelban joined Kirkland & Ellis as a partner in its real estate practice in New York. She joins from Latham & Watkins.
• Tracey Chenoweth joined Paul Hastings as a partner in its finance practice in New York. She joins from Skadden.
• Hamesh Khatkar joined Willkie Farr & Gallagher as a partner in its private equity practice group in London. He joins from Kirkland & Ellis.
• Tigist Kassahun joined Vinson & Elkins as a corporate partner in Washington, D.C. She joins from Debevoise & Plimpton.
• Marti Downey joined Littler in Nashville, where she will serve as chief legal officer and general counsel. She joins from Brookdale Senior Living.
• John Rainwater joined Squire Patton Boggs as a principal in its labor and employment practice in Denver. He joins from the US Labor Department.
• Jean Niehaus was appointed general counsel at Shopify.
• Philip Piecuch joined Polsinelli as a shareholder in its real estate practice in Chicago. He joins from Katten Muchin Rosenman.