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 last week in his home state.
Mr. Scruggs–who has been leading the charge against insurers over disputed Hurricane Katrina-related wind-vs.-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 was his son Zachary, a partner in his 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. 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 for comment sent to Mr. Scruggs, his defense attorney and his associates were not returned at press time.
Mr. Scruggs has been at the forefront of legal groups suing insurance companies over Hurricane Katrina claims. His firm represented his brother-in-law–U.S. Senator Trent Lott–in settling the Mississippi Republican's Katrina suit. (Sen. Lott announced he will leave Congress at year's end. See page 8.)
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.
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