Legal News

Melvyn Weiss gets 30 months for role as a "chief architect" in kickback scheme

By Jason Siegel

A federal judge in Los Angeles sentenced class-action attorney Melvyn Weiss to 30 months in federal prison for his role as one of the chief architects in a scheme where millions of dollars in illegal kickbacks were given to named plaintiffs in class action lawsuits, The National Law Journal reported.

Weiss, a founding partner of the New York firm now known as Milberg, plead guilty in March to   a federal racketeering conspiracy charge that he paid $11.3 million for people to give false statements in court, court documents and depositions in over 225 class-actions suits, Forbes reported.

Prosecutors sought a longer sentence of 33 months, while Weiss' attorney sought an 18 month sentence. According to The Wall Street Journal and its Law Blog, U.S. District Judge John Walter seemed to take into consideration the good things Weiss did in the past and his age of 72.

He will also have to forfeit $9.75 million and pay a $250,000 fine. About half of that forfeiture ($4.5 million) is due by next week.

Weiss is the fourth former Milberg Weiss partner to plead guilty over the illegal kickback scheme.

He'll start his prison sentence on August 28. His lawyer requested a minimum security facility in Morgantown, West Virginia, Bloomberg reported.

Milberg, formerly known as Milberg Weiss, is set to go to trial on August 12. Prosecutors allege that the firm made $251 million from the kickback scheme.

PRESS RELEASE - U.S. Attorney's Office Central District of California

Full post as published by Legal Pad | LA on June 03, 2008 (boomark / email).