Fargo attorney suspended, expecting lawsuit

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FARGO (AP) - Attorney James Bullis will soon find himself in a chair next to attorneys working on his behalf.

The North Dakota Supreme Court last month issued a 90-day suspension against Bullis, 40, of Fargo, for conflicts of interest in his role with Intellisol, a now-defunct software company.

The suspension begins Jan. 1. He also has to pay nearly $5,200 in investigation costs.

Bullis and his law firm were shareholders in Intellisol, and Bullis represented the company, its landlord and a Fargo stockbroker who helped sell Intellisol stock.

Bullis expects a lawsuit next month from one investor to head to trial in Cass County.

Ronald D. Ward, 40, of Fargo, said he invested $133,800 in Intellisol and claims investors were told they could quickly earn at least 300 percent profit by putting money into three shell companies.

"Investors were advised that their investments were needed merely to keep Intellisol in business and cover its ongoing losses," the lawsuit said.

Bullis filed a federal lawsuit last month against his insurance provider, Minnesota Lawyers Mutual Insurance Co., for refusing to cover his legal bills in Ward's lawsuit.

Bullis, also named as a defendant in two other civil lawsuits by investors, said in an e-mail interview the Ward case could go to trial in January. But he declined to comment on the case.

"Specifically, I don't want to do or say anything that could be construed as an attempt to influence the jury pool," he wrote.

Bullis, also a developer in area housing subdivisions like West Fargo's Eagle Run, served as the attorney for Michael Volk and Bruce Hager, who solicited investors for Intellisol.

Volk's bankruptcy in 2003 prompted a federal investigation. Hager faces criminal charges for selling unsecured securities to Intellisol investors. In March, the North Dakota Securities Department issued a cease and desist order against Bullis and plans to seek $8.7 million in civil penalties and restitution for dozens of investors.

Matthew Bahrenburg, a lawyer for the state Securities Department, said the order remains in effect and the case is pending.

A 2005 lawsuit filed by James Ellefson, the mayor of Ada, Minn., is nearing completion. Last March, Bullis, named as a defendant in a case stemming from Intellisol investors, was dropped from the lawsuit. Ellefson agreed to arbitration with Hager and the company he worked for at the time.

The Ellefson complaint served as the basis for the state Supreme Court's suspending Bullis' license. The court's order said Bullis served as an attorney for Intellisol, a business associate for Volk and Hager, trustee of Ellefson's trust and owner of Intellisol stock.

"Bullis's conduct was pervasive and demonstrates an indifference to basic conflict of interest considerations," the order said.

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