Melvyn I. Weiss, the attorney who led numerous class action-suits against insurers and other corporations, will serve 30 months in federal prison and pay more than $9 million in forfeiture and fines after pleading guilty to charges of racketeering.
Mr. Weiss was sentenced Monday after pleading guilty on April 2 to a federal racketeering conspiracy charge.
The 72 year-old attorney was sentenced by U.S. District Judge John F. Walter in Los Angeles for concealing secret payment arrangements that his firm, Milberg Weiss, arranged to plaintiffs in class-action lawsuits.
In addition to his prison time, Mr. Weiss will forfeit $9.75 million in ill-gotten gains from the illegal actions and pay a criminal fine of $250,000.
In a statement from the U.S. Attorney's Office Central District of California in Los Angeles, Mr. Weiss and partners in the firm conspired with individuals, including friends and relatives, to serve as plaintiffs in lawsuits filed by the firm. To conceal illegal kickbacks the witnesses made misleading statements in court documents and in under-oath depositions. The kickbacks were paid in cash or through various intermediary law firms and lawyers selected by the plaintiffs.
“Over the course of 25 years, Melvyn Weiss and his co-conspirators compromised the justice system as they caused associates to lie to judges across the nation,” said U.S. Attorney Thomas P. O'Brien in a statement. “His prison term is warranted by the impact he and others had on the integrity of the courts and the interests of class members being supposedly represented by the law firm.”
The U.S. Attorneys office said there are still two defendants remaining in the case, the law firm Milberg Weiss and attorney Paul T. Selzer, who is scheduled to go on trial in August.
Millberg Weiss attorneys William S. Lerach, David J. Bershad and Steven G. Schulman have already pleaded guilty.
Mr. Lerach is serving a two-year federal prison sentence after pleading guilty to a conspiracy charge last year.
Mr. Bershad and Mr. Schulman are scheduled to be sentenced later this year.
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