|  | | 2008 News and Press Releases | | |
HEADLINE NEWS:
Lawyer Sentenced In Kickback Scheme
Jacob Adelman - The Associated Press
BusinessWeek. February 11, 2008
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EXCERPT: William Lerach, a former partner at a well-known New York law firm, was sentenced Monday to two years in federal prison for his role in a lucrative kickback scheme involving class-action lawsuits against some of the nation's biggest corporations. Lerach, 61, was also sentenced to two years probation, fined $250,000 and ordered to complete 1,000 hours of community service. "This whole conspiracy corrupted the law firm and it corrupted it in the most evil way," U.S. District Judge John Walter said during the hearing. Authorities said Lerach's former firm, now known as Milberg Weiss, made an estimated $250 million over two decades by filing legal actions on behalf of professional plaintiffs who received kickbacks. The firm paid $11.3 million in kickbacks to people who became plaintiffs in lawsuits targeting companies such as AT&T, Lucent, WorldCom, Microsoft and Prudential Insurance, prosecutors said. Seven people, including three former partners at the firm, have pleaded guilty in the case. Lerach, whose high-profile legal victories included a $7 billion judgment against now-defunct energy giant Enron Corp., pleaded guilty in October to one count of conspiracy to obstruct justice and make false statements. "I pleaded guilty in this case because I was guilty," Lerach said before sentencing. "It was, as they say, felony stupid." Lerach, who wore a dark suit, sat quietly with his fingers interlaced on a desk in front of him as the sentence was read. It was the maximum that Lerach had agreed to serve as part of a plea deal with prosecutors. |
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