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Ethical questions at IPI lead lawyer to exit as chair held in contempt

By jili tutorial · September 1, 2026

Ethical Questions at IPI Lead Lawyer to Exit as Chair Held in Contempt

George Hasselback has ended his representation of Imperial Pacific International (IPI), the embattled casino operator. The attorney, who had been defending IPI in a lawsuit filed by Fox Financial and other parties, filed a motion to withdraw on February 12. A judge granted that petition yesterday, citing ethical concerns that made continued representation untenable.

Hasselback Withdraws Over Ethical Conflicts

Magistrate Judge Heather Kennedy agreed that requiring Hasselback to stay on would place him in an ethical dilemma. In her ruling, Judge Kennedy stated: “The court finds that Hasselback’s statements that continued representation in this matter would cause him to violate several ethical obligations trigger mandatory withdrawal under Model Rule 1.16(a) and is sufficient for granting his motion.” She further noted that Hasselback did not need to provide detailed explanations beyond his written motion, because forcing him to elaborate “could create the untenable situation of an attorney having to choose between his obligation of candor to the court and his obligation to maintain his client’s confidences.”

Because of attorney–client privilege, the exact nature of the ethical conflicts remains unclear. However, even the hint of such issues is likely to draw renewed scrutiny to IPI—scrutiny that gaming regulators have historically been reluctant to enforce. What this means for the company’s future is uncertain.

IPI Faces Tight Deadline to Replace Lead Attorney

IPI now has until this Friday to find a new lawyer to handle the six cases that Hasselback was managing. The company may attempt to use the departure as a reason to delay ongoing legal battles. Judge Kennedy anticipated this tactic, adding in her ruling that the attorney’s exit “may cause some delay, [but] that delay is not so much so that it would cause significant prejudice or adversely and materially affect the plaintiff.”

Background: Fox Financial Lawsuit Over Guarantee Agreements

The lawsuit from Fox Financial is one of a growing list of legal challenges IPI faces. It centers on a lease agreement between IPI, a third party called Forson Holdings, and Fox Financial. In 2016, Forson Holdings leased property from Fox but fell behind on payments. IPI signed on as a guarantor, meaning it was responsible for covering Forson’s obligations if the payments stopped. However, IPI later decided it did not need to follow the contract terms, leading to the current dispute.

Chairwoman Cui Li Jie Held in Contempt Again

IPI’s legal troubles extend beyond this lawsuit. Chairwoman Cui Li Jie has already been held in contempt of court once, and now faces a second contempt ruling. A lawyer representing employees suing IPI and Cui presented evidence that she lied under oath, and Chief Judge Ramona V. Manglona agreed. Judge Manglona issued her ruling this morning. Cui, responding through an interpreter, said, “I don’t know anything, I don’t understand English.”

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