Ethics

The WSJ reports that John Torkelson, formerly a plaintiff-side expert witness in securities litigation, has submitted a statement (in connection with a plea deal) admitting to submitting to district courts for reimbursement false statements of his billings on cases.  Mr. Torkelson apparently states as well that the firm he worked with, then Milberg Weiss, knew his numbers were inflated. 

Though Torkelson's statement apparently did not name names, the story mentions that Keith Park, who dealt with settlements at what in those days was Milberg Weiss and is now Coughlin Stoia, signed a reimbursement request in one relevant case.  I only worked with Mr. Park on one settlement, about 11 years ago, but he struck me as a true gentleman.  I can't believe he  would submit false reimbursement claims if he had any idea they were false.  I had even briefer contact with Pat Coughlin, also named in the story as signing a request for reimbursement in one case, but he seemed and is known as a smart, forthright person.  It seems extremely unlikely to me that he would agree to submit false claims.  Most likely, their names appear on standard documents that were part of a fairly standardized settlement process.  I would draw no adverse inferences from their signatures.

The WSJ states "It isn't known whether Messrs. Park or Coughlin knew fees were inflated," but we know from the story that their names do not appear in Torkelson's plea papers.  Although the story is appropriately qualified, and includes a denial of wrongdoing from the Coughlin, Stoia firm, I think it would have been better had the WSJ taken more care with a story that may well be read as raising doubts which the facts reported do not, in my view, justify.