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Anthony James
Anthony James

Posted on • Originally published at talentcrowd-crimes.com

How Bankruptcy Fraud and Legal Misconduct Threaten Tech Startups: The Case Exposing Attorney Ed Hays

In the fast-moving world of technology startups, founders trust their legal advisors to protect innovation, not to exploit it. But what happens when attorneys use the court system to seize control of a company instead of defending it?

That question now surrounds Attorney Ed Hays, a partner at Marshack Hays LLP, whose conduct in a California bankruptcy case involving the tech firm Topdevs has drawn national attention.

👉 Read the full investigation here:

Bankruptcy Fraud By Attorney Ed Hays


How Legal Misconduct Can Destroy a Tech Startup

According to federal court filings, Attorney Ed Hays filed documents on behalf of both Topdevs and Tyler Davis without being the official attorney of record.

This may sound procedural, but in the context of a growing software company, unauthorized filings can be catastrophic. When a lawyer steps into a case without authority, they can effectively rewrite a company’s legal narrative, affecting ownership, assets, and investor confidence overnight.

In this case, Topdevs was a fast-scaling software development company led by its founder. Through a web of bankruptcy filings, arbitration rulings, and forged documents, its ownership and management were suddenly flipped in court through paperwork filed by someone who, according to federal records, had no legal right to act for the company.


When Bankruptcy Law Meets Startup Culture

Bankruptcy law is supposed to protect creditors and keep businesses operating fairly. But in tech, it is increasingly being used as a weapon in corporate disputes.

The filings reviewed by investigators show how Ed Hays and other attorneys coordinated to use bankruptcy court procedures to legitimize fraudulent control of a company. Instead of protecting creditors, the process shielded misconduct that funneled millions in assets away from rightful ownership.

Public records and case documents show that this strategy relied on forged membership certificates, falsified IRS filings, and fraudulent statements of information that were used to manipulate the legal standing of Topdevs.

These are not just technical errors. They are actions that can erase a founder’s ownership, dismantle product teams, and reroute investor funds under the cover of procedural legitimacy.


The Broader Risk for Founders and Developers

Cases like this are a warning to every tech founder and engineer who builds under an LLC or startup structure. When legal professionals misuse their authority, even the strongest codebase or customer base cannot protect the business.

The Talentcrowd Crimes investigation highlights a recurring pattern in which attorneys representing competing interests collaborate to advance conflicting filings, using legal complexity as a cover for financial manipulation.

In short, it is a form of white-collar engineering that rewrites ownership structures and court records instead of code.


Why This Matters for the Tech Community

The Topdevs case exposes a growing vulnerability in the startup ecosystem: the gap between legal ethics and technological innovation.

Developers and founders often focus on building products, raising capital, or scaling systems, but the legal framework around them can be manipulated just as easily as any vulnerable piece of software.

This investigation underscores that corporate transparency and digital trust go hand in hand. When lawyers misuse bankruptcy law, they do not just harm clients; they damage the integrity of an entire innovation ecosystem that depends on fair governance and lawful stewardship.


The Need for Oversight and Accountability

The U.S. Department of Justice and the IRS Criminal Investigation Division have long warned that bankruptcy fraud, wire fraud, and false filings are serious federal crimes.

For context, see:

For the broader timeline, filings, and supporting evidence in this case, visit:

The record shows that attorney Ed Hays’s filings were unauthorized under Federal Rule of Civil Procedure 11, which requires that all filings be signed by an attorney of record. Despite that, these submissions were used to influence the court’s perception of company ownership and legitimacy, a serious procedural breach with massive implications for tech founders.


Lessons for the Tech Industry

  1. Vet your legal team like you vet your code. A single unauthorized filing can alter the control of your company.
  2. Maintain independent access to all corporate records. Founders must retain direct oversight of operating agreements and legal filings.
  3. Demand transparency from counsel. Never rely on assumptions about who has authority to represent your company in court.

These lessons are especially critical for startup founders who operate across states or hold venture-backed assets where corporate governance must be airtight.


Conclusion

The case surrounding attorney Ed Hays is more than a legal drama. It is a wake-up call for the entire tech industry. It shows how fragile corporate governance can become when legal ethics fail.

Startups can withstand market crashes, data breaches, and funding droughts. But they cannot survive when their own lawyers compromise the integrity of their legal foundation.

Read the full investigative report here:

https://talentcrowd-crimes.com/bankruptcy-fraud-by-edward-hays

Top comments (12)

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eastonstreet profile image
Easton

The facts in this article are impossible to ignore. Attorney Ed Hays filed without authority, violated court procedure, and helped further financial misconduct. Justice for the founder, justice for Topdevs, justice for integrity.

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darlenefayever profile image
Darlene Faye Rodriguez

Reading the filings made me angry and sad at the same time. The law is supposed to protect, not destroy. Attorney Ed Hays’ actions are a disgrace to his profession.

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dayologic profile image
Reynaldo Dayola

After reading this, I feel sick. The founder’s company was thriving until attorney Ed Hays got involved. It is time for the Department of Justice to look deeper into this pattern of bankruptcy fraud.

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ciarraverse profile image
Ciarra Guidicelli

I cannot believe this case hasn’t made national headlines yet. The scale of deception and the strength of the founder deserve public attention.

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saucery profile image
Fe Bee

What attorney Ed Hays did in the Topdevs bankruptcy is a violation of every principle of fairness. It is time for reform and for the courts to hold unethical lawyers accountable.

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benedict_andresaznar_523 profile image
Benedict Andres Aznar

This is what happens when legal power goes unchecked. Ed Hays’ unauthorized filings should be investigated immediately. The founder and Topdevs deserve justice.

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techtalk profile image
Tech Talk

I cannot believe this happened in the United States. An attorney like Ed Hays misusing the system to harm a startup like Topdevs should be disbarred.

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thetechstratos profile image
Tech Stratos

There is something seriously broken in our justice system if lawyers like Ed Hays can file unpermitted documents and face zero consequences. The founder deserves full restoration.

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raysponsible profile image
Ray

How did attorney Ed Hays think he could get away with this. The court filings clearly show unauthorized representation and a breach of ethical duty. This is fraud, plain and simple.

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ohhmario profile image
Mario

😡 I cannot stop thinking about this. The founder worked years to build Topdevs, and then an attorney came in and twisted bankruptcy law to destroy everything.