Mississippi attorney Richard Scruggs, already facing criminal charges in Alabama over his handling of Hurricane Katrina insurance claims evidence, was indicted on federal bribery charges yesterday in his home state.
Mr. Scruggs–leading the charge against insurers over disputed Hurricane Katrina wind-versus-water damage claims–was indicted by a federal grand jury in Oxford, Miss., with four other attorneys for conspiring to bribe a state court judge with $50,000.
One of the other attorneys indicted was his son Zachary, a partner in his Oxford law firm.
According to the indictment, 3rd Circuit District Court Judge Henry L. Lackey notified the FBI when the bribe attempt was made and cooperated as the alleged scheme unfolded.
According to the Mississippi indictment, Judge Lackey was presiding over a legal action in which The Scruggs law firm was suing an attorney in a dispute over $26.5 million in attorneys' fees.
In addition to Mr. Scruggs and his son, those indicted included attorneys Sidney A. Backstrom, Steven A. Patterson and Timothy R. Balducci–who, according to the indictment, acted as a go-between to hand cash to the judge. Mr. Balducci is a member of the Langston law firm in Booneville, Miss.
Calls and e-mails to Mr. Scruggs and his associates were not immediately returned, and calls to Joey Langston, his defense attorney, did not produce an immediate response.
Mr. Scruggs has been at the forefront of legal groups suing insurance companies over Hurricane Katrina claims.
In August, criminal contempt charges were brought against him by special federal prosecutors in Alabama. The charges stemmed from Mr. Scruggs' alleged defiance of an injunction not to disclose purloined State Farm claims documents.
The U.S. Attorney's Office in Oxford issued a statement today noting that the defendants in the bribery case face a six count indictment and if convicted are subject to maximum penalties of 75 years in prison, a $1.5 million fine, 18 years supervised release and $600 in special assessments.
Additionally, it said that the case remains under investigation by the FBI.
This article was updated 4:14 p.m.
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