Legal News

Melvyn Weiss pleads guilty to illegal kickback scheme

By Jason Siegel

Melvyn Weiss will plead guilty to a federal racketeering charge as part of a plea agreement that will lead to a sentence between 18 months and 33 months.

Weiss, the fourth current or former partner at the firm to admit criminal conduct, will also return $9.75 million gained through the criminal activity, pay a $250,000 fine and acknowledge that he and others were involved in the illegal kickback scheme that brought in $250 million in attorney's fees.

Weiss is a co-founder of Milberg Weiss. The government plans to ask for a 33-month sentence against him.

?This kickback scheme lasted for more than 25 years and had a severely detrimental effect on the administration of justice across the nation as lies were routinely made to judges overseeing significant cases,? said U.S. Attorney Thomas P. O?Brien in a press release.

Former Milberg Weiss partners William Lerach, David Bershad and Steven Schulman plead guilty to their role in the scheme that paid millions in secret kickbacks to people for serving as named plaintiffs in over 225 class-action and shareholder derivative-action lawsuits. Lerach was sentenced to two years in prison, while Schulman and Bershad still await sentencing this year.

The two defendants remaining in the case are the Milberg Weiss firm and attorney Paul Selzer. They will go to trial in August.

U.S. Attorney's Office Central District of California Press Release

Melyvn Weiss to resign, firm's name now Milberg LLP

Melyvn Weiss is resigning from the Milberg Weiss. And the firm's name is changing again to just Milberg LLP, according to a Milberg (ahem) press release.

"It is with deep disappointment that we have learned that Melvyn I. Weiss has engaged in misconduct and has agreed to plead guilty to conspiracy charges in the Central District of California," reads the press release.

"Having previously believed former leaders? assurances of their innocence, the Firm is now seeking to find a fair and appropriate resolution of remaining issues so that we can continue our work on behalf of injured investors and consumers."

The firm's founder and last name standing, Larry Milberg, died in 1989, finds The Wall Street Journal's law blog.

The blog also provides a press release from Ben Brafman, Weiss' attorney, where Weiss apologizes to all affected by his criminal actions and expresses his belief that the firm is "a unique legal resource for the benefit of victims of wrongdoing affecting the masses, who historically have been under-served in so many ways.?

Full post as published by Legal Pad | LA on March 20, 2008 (boomark / email).