Nevertheless, Falcone subsequently balked at paying Dontzin a $5 million success fee for obtaining a settlement with the SEC. In 2018, Dontzin’s firm brought an arbitration against the financier, asserting that Falcone owed the firm not just the $5 million success fee but another $4 million in unpaid fees for matters Falcone assigned Dontzin after the SEC settlement. Falcone and his lawyers at Huth Reynolds came up with an array of reasons why Dontzin’s firm didn’t deserve a success fee, including Falcone’s new assertion that the settlement shouldn’t be regarded as a success for him. In fact, Falcone asserted, Dontzin Nagy actually owed him money – more than $800 million for failing to pursue potential malpractice claims against a law firm that represented his fund in one of the deals scrutinized by the SEC.
