Legal News

Prosecutors re-assert Weiss' 'criminal arrogance'

By Jason Siegel

Federal prosecutors in the government's kickback case against Milberg are disputing claims made last week by the firm's co-founder, Melvyn Weiss, who stated that his wrongdoing, while punishable, did not amount to "criminal arrogance," according to court papers filed on Thursday.

Weiss, who has pleaded guilty to one count of racketeering conspiracy, is scheduled to be sentenced today.

Weiss is the last of the firm's former partners to plead guilty in the government's case, which alleges that Milberg, formerly known as Milberg Weiss, and seven of its partners, including Weiss, obtained $251 million in attorney fees by paying kickbacks to lead plaintiffs.

Under a binding plea deal, Weiss faces 18 to 33 months in prison, plus nearly $10 million in fines and forfeitures. Last week, Weiss sought the minimum sentence.

Prosecutors, who are seeking the maximum sentence, pointed to what they allege was Weiss' "criminal arrogance" in discussing the kickbacks in person with an intermediary lawyer for one of the lead plaintiffs, Howard Vogel, while the criminal investigation was ongoing. They also said he obstructed justice by failing to turn over a subpoenaed fax.

In response, Weiss said that his meeting with Vogel's lawyer was "less sinister" than prosecutors maintain, especially since he didn't work on the case at issue. He also said that keeping the subpoenaed fax, while admittedly a poor judgment call, wasn't as bad as destroying it.

"Weiss's post-hoc rationalization of his conduct is implausible," prosecutors claim in court papers filed May 29.

They said Weiss was aware of Vogel's long-standing relationship with the firm. Further, in choosing to cancel a phone call in favor of a meeting in person with Vogel's lawyers ? an allegedly unusual tactic for Weiss ? Weiss must have known the conversation would involve the illegal kickback payments.

In re-asserting Weiss's "criminal arrogance," prosecutors add that Weiss failed to seek advice from his criminal lawyer at the time he discussed the payments during the investigation.

"His failure to do so speaks volumes about his state of mind," they said in court papers.

As to the fax, prosecutors said that "Weiss ultimately does not dispute that his conduct was intended to and did obstruct the government's investigation."

-- Amanda Bronstad

Full post as published by Legal Pad | LA on June 02, 2008 (boomark / email).