The Facts That Milberg Admits

By June 17, 2008General

No small potatoes, the crimes that the law firms admits to and for which it must pay $75 million. From the government’s release:

To conceal the illegal kickback scheme from judges presiding over the lawsuits and other parties involved in the litigations, Milberg and its senior partners made, and caused the paid plaintiffs to make, false and misleading statements in documents and in under-oath depositions. In the settlement filed today, Milberg acknowledged that its former partners engaged in this conduct.

Milberg also admitted that members of the firm paid kickbacks to several stockbrokers in exchange for referring clients who would serve as plaintiffs in Milberg lawsuits. Additionally, in the statement of facts, Milberg acknowledges that once it learned about the investigation into the kickback scheme it failed to conduct an independent internal investigation and delayed taking steps to ensure that the illegal conduct would stop.

The text of the 2006 indictment is available at the Jurist, here.

One defendant still remains: “Attorney Paul T. Selzer, of Palm Springs, who allegedly served as an intermediary lawyer who laundered illegal kickback payments for the benefit of a paid plaintiff, is scheduled to go on trial in August.”

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