Miss. Judges, Attorney Face Prison For Squeezing Insurer

A Mississippi attorney and two former judges face sentencing in June for a scheme where the lawyer bribed the jurists to fix civil cases, winning more than $4 million from insurers, federal authorities said.

Their announcement followed Friday's conviction by a U.S. District Court Jury in Jackson, Miss., of attorney Paul S. Minor, former Mississippi State Chancery Court Judge Walter W. Teel, and former State Court Circuit Judge John H. Whitfield.

In addition to a $3.5 million personal injury case verdict, the scheme forced the St. Paul, Minn.-based United States Fidelity & Guaranty insurance company into a $1.5 million settlement, according to the statement from Assistant Attorney General Alice S. Fisher.

The jury, according to Ms. Fisher, heard evidence that then Judge Teel accepted a $25,000 hidden loan from Mr. Minor, who also paid some of Judge Teel's legal expenses in a case where the judge was acquitted of misappropriation of funds.

Subsequently, Judge Teel presided at a settlement conference where Mr. Minor represented a Biloxi, Miss., bank that was suing U.S. Fidelity for bad faith over declination of coverage, and told the insurer's attorneys if they went to trial he would be inclined to award punitive damages to the bank.

The insurer "promptly agreed to settle," according to a U.S. Department of Justice statement.

According to the department, Mr. Minor guaranteed $140,000 in loans to Judge Whitfield, who tried a personal injury case brought by Mr. Minor, and awarded $3.75 million--an amount he later reduced to $3.65 million.

The three are due for sentencing on June 14 before trial Judge Henry T. Wingate in Mississippi's Southern U.S. District Court.

The former judges were convicted of conspiracy, bribery and wire fraud charges that have total maximum terms of 35 years and fines of $500,000. Mr. Minor, who was convicted of an additional charge of racketeering, faces 55 years and $750,000.