The Illinois Attorney Registration and Disciplinary Commission (ARDC) has filed a complaint against John Steele, one of two lawyers believed to be the masterminds behind the Prenda Law copyright-trolling scheme.

In the complaint, ARDC asks for a panel hearing and a disciplinary recommendation, which will be transmitted to the Illinois Supreme Court. That court has the power to suspend and disbar attorneys.

This amended complaint has become public more than two years after US District Judge Otis Wright blasted Steele and his Prenda colleagues, referring them to state bar investigators (as well as the IRS and Department of Justice.) But it's clear the Illinois investigation has been going on for some time, as it includes detailed information related to several of Prenda's best-known cases.

Steele is charged with repeatedly defrauding courts, charging ahead with discovery against Internet users when he shouldn't have, and blocking legitimate discovery efforts against him. He filed frivolous lawsuits and sent "shakedown letters... for purposes of extracting settlements," the Illinois ARDC contends.

The document explains how mystery LLCs were set up as St. Nevis-based owners of porn movie copyrights, then sued more than 15,000 defendants over the course of 18 months, between fall 2010 and February 2012. By 2012, none of the defendants had been served with process. Rather, Prenda just went far enough to get discovery against large numbers of Internet users, then threatened them by phone and mail. Demands ranged from $2,500 to $4,000 to avoid a lawsuit. "If you act promptly you will avoid being named as a Defendant," a typical letter concluded.

By late 2012, about 5,000 of the accused had paid up to Steele and his colleague Paul Hansmeier. It's unclear how much money they made, but the complaint states it's in the millions.

Hansmeier, a Minnesota attorney, isn't a subject of the ARDC complaint. Paul Duffy, the one lawyer officially affiliated with Prenda Law, is mentioned throughout the complaint, but Duffy passed away earlier this month.

Seven counts

Each of the seven counts is a significant chapter in the story of Prenda's unraveling. In most of the cases, Steele is accused of significant violations of Illinois attorney rules, including "conduct involving dishonesty, fraud, deceit, or misrepresentation."

First up is the Ingenuity 13 v. John Doe case, which led Prenda lawyers to US District Judge Otis Wright's Los Angeles courtroom. Wright was the first federal judge to slap significant sanctions on Steele and Hansmeier, and suggested they should be criminally investigated by the Department of Justice, as well as state bar authorities.

The "manager" of Ingenuity 13 was Steele's former housekeeper, Alan Cooper. He later testified his signature was forged on key documents. Steele is charged with misusing Cooper's identity, disobeying Judge Wright's order to stop the discovery process, "filing lawsuits without supporting facts," and failing to respond to "reasonable inquiries by the tribunal."

The second count involves Cooper's counter-suit against Steele, filed in early 2013. Cooper charged that Prenda and Steele had stolen his identity. At one point Steele agreed to pay $35,000 to end the lawsuit, but then stopped responding. He was found in default, and ordered to pay $5,000 in damages for humiliation of Cooper, and $250,000 in punitive damages. He never paid.

Count Three relates to Guava LLC v. Spencer Merkel, a bizarre anti-hacking case. Prenda lawyers demanded $3,400 from Merkel, but the defendant lived "below the poverty level in Oregon" and told Prenda he couldn't pay. They arranged for Merkel to get voluntarily sued so discovery could be granted against his "co-conspirators."

Steele, his colleague Paul Duffy, and Alpha Law (owned by Hansmeier) were ordered to pay nearly $64,000. They still haven't paid. A Minnesota appeals court recently clarified that Hansmeier is personally responsible for the sanction. Steele is charged with frivolous discovery requests, blowing off a hearing, and other violations of the Illinois Rules of Professional Conduct.

Count Four relates to one of Prenda's most bold moves, in Lightspeed Media v. Anthony Smith. In that case Prenda actually added AT&T and Comcast as defendants when the giant ISPs wouldn't cough up customer names fast enough. Smith, a 27-year-old nursing student in Illinois, started receiving shakedown letters asking him for $4,000 in order to avoid a lawsuit, and Prenda lawyers were determined to get customer information for 6,600 of Smith's downloading "co-conspirators."

The court ruled that Steele and Duffy were engaged in "abusive litigation…simply filing a lawsuit to do discovery to find out if you can sue somebody. That’s just utter nonsense."

This case resulted in a sanctions award of nearly $300,000 that was upheld by the US Court of Appeals for the Seventh Circuit. That sanction was paid for with a bond.

Count Five came about because Steele didn't pay the Smith sanctions award. When the banks that held their cash were subpoenaed, Duffy sent a court-stamped motion to quash to them, implying the subpoenas were on hold. They weren't. Steele is charged with not paying the sanction award, and dodging valid discovery requests.

Count Six relates Guava LLC v. Comcast, a "petition seeking discovery prior to filing suit," filed in St. Clair county, Illinois. Steele represented Guava, and his petition sought user information for 300 IP addresses. Despite Comcast's objections, the petition was granted. Several John Does appealed to a higher court, which sided with them and against Steele. Steele is accused of abusing the discovery process.

Finally, Count Seven relates to one of Prenda's most outrageous claims: that it was libeled and defamed by Alan Cooper and his attorney Paul Godfread. The predictable result: a $11,758.20 sanction award against Duffy and Steele. They didn't pay. Steele is charged with failing to comply with the orders of the judge who made the sanction order.

Steele didn't respond to requests for comment sent to his last known e-mail addresses.