Formerly a name partner at embattled plaintiff firm, Milberg Weiss, David Bershad has plead guilty on conspiracy charges stemming from the Justice Department's seven year long investigation into business practices at his former firm.

Word on the street for the last few weeks had been that Bershad had started dealing and that a plea deal was imminent. Coincidentally or not, this talk of a Bershad cutting a plea occurred simultaneously with the leak about Bill Lerach's planned retirement.

Whatever the other undisclosed terms of Bershad's deal might be, we know that Bershad will forfeit $7.5 million, pay a $250,000 fine and - most importantly - cooperate with prosecutors in their ongoing investigation.

The Feds are still working on landing the big fish - Bill Lerach and Melvyn Weiss. This move by Bershad definitely puts the hooks a bit closer than they were just a week ago.

-- MDT

Labels: Bill Lerach, David Bershad, kickbacks, Melvyn Weiss, Milberg, Milberg Weiss