Paul T. Selzer -- the final defendant in the government's bribery case against law firm, Milberg Weiss -- plans to plead guilty in relation to the Milberg Weiss kickback investigation. Selzer was originally indicted in the probe back in June of 2005.

Details of Selzer's plea agreement are expected this morning. Selzer, a California attorney, had been one of the key figures at the heart of the government's investigation into Milberg Weiss. securities class action lawsuits against a variety of companies.

It was alleged that Selzer helped Milberg funnel payments to his client, Seymour Lazar, another attorney and reoccurring lead plaintiff for Milberg. It is expected that Selzer get probation and avoid jail time but be required to pay a $250,000 fine.

If you've hit the snooze button a few too many times in the course of the Milberg case and want a refresher, you might want to check out our recap of the Milberg investigation, penned on the eve of the firms indictment back in May of 2006.

--MDT

Labels: Bill Lerach, Melvyn Weiss, Milberg Weiss, Paul Selzer, Seymour Lazar, Steven Cooperman

Seymour Lazar, the 80 year old attorney - and serial securities plaintiff - who plead guilty in the Milberg kickback case has received his sentence - six months home detention and two years probation. He was also fined $600,000. Lazar is the first to be sentenced in the Milberg probe.

Lazar has also already repaid $1.5 million, which amounts to what he was allegedly paid by Milberg Weiss in exchange for acting as a re-occurring lead plaintiff in the firm's securities class actions. Milberg stands accused (and seven people have already plead guilty in connection with) distributing $11 million in kickbacks to individuals they called upon to routinely serve as lead plaintiff in their cases.

-- MDT

Labels: Bill Lerach, kickbacks, Lerach, Milberg, Milberg Weiss, Seymour Lazar

Great piece from The Recorder at Law.com. Lots of detail from the 7 or so year history of the Milberg investigation that may have slipped your mind, along with a detailing of some strategic missteps by Milberg that may end up costing the firm everything.

Of course, for a refresher on the investigation, all you need to do is click the tags below. There was a huge flurry of news coverage back in and around January '06 at right about the time Lazar was indicted. And The Daily Caveat was there.

-- MDT

Labels: Bill Lerach, Lerach, Melvyn Weiss, Milberg, Milberg Weiss, Seymour Lazar, Steven Cooperman

It is in. Reuters has details. Sentencing will be January 28th, if the 80 year old Lazar makes in that far. Because of his age and relatively poor health, probation rather than jail appears to be in his future. Lazar has also agreed to forfeit $1.5 million and a fine of up to $600,000.

-- MDT

Labels: kickbacks, Milberg, Milberg Weiss, Seymour Lazar

After all this time? Pretty interesting stuff from LA Biz Observed and SignOnSanDiego.

-- MDT

Labels: kickbacks, Milberg, Milberg Weiss, plea agreement, Seymour Lazar

He is currently free on $1 million bond and is, at a hearing today, expected to plead innocent to a variety of charges stemming from the government's investigation into kickbacks offered to Milberg clients. Weiss is facing four counts of conspiracy, racketeering, obstruction of justice and making false statements and could serve up 40 years based on the charges.

A trial is scheduled for January, where Weiss along with will co-defendants Seymour Lazar and attorney Paul Selzer, will get a chance to defend themselves against federal prosecutors' ever-expanding case. The Lazar and Selzer indictments kicked of a renewed push in the government's years-long investigation of Milberg Weiss. Lazar and Selzer were a multi-time Milberg plaintiff who purportedly received kickbacks from the firm.

Further details on the Melvyn Weiss trial can be found via Reuters... and of course, for past coverage from The Daily Caveat, try the tags below.

Labels: kickbacks, Melvyn Weiss, Milberg, Milberg Weiss, Paul Selzer, Seymour Lazar

It is being widely reported today that William Lerach is expected to accept a plea bargain in connection with the continuing kickback investigation into his former firm, Milberg Weiss. While Lerach had yet to be formally faced with any charges, it has been long assumed that he was one of the unnamed attorneys mentioned throughout the government's case against Milberg.

The word coming in from all over creation is that Lerach will accept a guilty plea on one count of conspiracy for which he would face a sentence of 12 to 24 months and an $8 million fine. It is widely known that Lerach and his lawyers have been negotiating with federal prosecutors for some time now and this purported agreement apparently reflects the outcome of those talks. A judge would still have give final approval to the deal.

Lerach would be the second former Milberg attorney to plead guilty in connection with the case. The other would be indicted former partner David Bershad, who plead guilty back in July to similar charges. Steven Schulman, a third attorney from Milberg continues to deny kickback-related charges, as does the firm itself.

Please step back and allow the dancing on the grave to begin. Overlawyered, I'm looking at you. Point of Law, don't disappoint me now.

Personally, I'm biased. I'll admit it. I've worked in product safety and consumer advocacy. I also cut my teeth as an investigator working on too many securities class action lawsuits not to have my sympathies with Lerach and the plaintiffs' bar. Frankly, I can count the number of cases where something significant wasn't found - probably on one hand. And yet clearly you must play by the rules, rules which it seems were broken.

Of couse, the guilty plea isn't what burned Lerach's rep. Even before the kickback case got going in earnest (about 6 years into the 7 year investigation) Lerach was a already a polarizing figure. His tactics over the year have done little to endear him to the other side of the aisle, but his success on behalf of investors have also not been insignificant.

The legal profession might be a bit dirtier for Lerach's influence and, lets call it zealous advocacy, but you can't tell me that business isn't also a little cleaner as a result. I won't mourn his rightful prosecution but I don't plan on celebrating it either.

-- MDT

Labels: Bill Lerach, David Bershad, Lerach, Milberg, Milberg Weiss, Seymour Lazar, Steven Cooperman, Steven Schulman

In a statement released earlier in the week the firm of Lerach Coughlin Stoia Geller Rudman & Robbins announced that effective August 31st they would be dropping "Lerach" from their name. This move signals the expected retirement of firm co-founder and big gun (arguably the biggest gun in class action litigation), William S. Lerach.

Bill Lerach has spend the last year or so increasingly dogged by the results of a federal investigation into he and his former colleagues at plaintiff firm Milberg Weiss. After seven years of digging the probe heated up this year as authorities turned up the heat on key witnesses like former Milberg lead plaintiffs; retired entertainment attorney, Seymour Lazar and and the colorful eye doctor, art dealer and insurance fraudster, Steven Cooperman.

Since then we've seen indictments, resignations and, just perhaps, the end of an era. Lerach has yet to be indicted himself and may never be, but he remains one of the biggest fish in the case and - no doubt - the one prosecutors were looking to land all along. Amid all the speculation over whether an indictment of Lerach would be forthcoming murmers started about a potential retirement, one that might spare his current firm should Lerach be prosecuted.

It appears that August 31st will be the date.

Lerach, with typical brass, had this to say, “I have appreciated the opportunity to fight for the victims of corporate fraud. However, I realize that my success has made me a target,” Mr. Lerach said in a statement. “These allegations have proven to be personally time-consuming, and I have decided to focus single-mindedly on putting the matter behind me once and for all.”

-- MDT

Labels: Bill Lerach, kickbacks, Lerach, Milberg, Milberg Weiss, Seymour Lazar, Steven Cooperman

Well, mail fraud looks to be out, but on the key question about whether or not the alleged kickbacks did any harm to Milberg's clients, the judge came down in favor the the government's case stating that the harm from these actions was "forseeable" and actual harm need not be proven. More on Milberg at the WSJ law blog.

For additional notes on recent Milberg-related happenings, see Lyle Roberts' 10b-5 Daily, which as you covered.

-- MDT

Labels: kickbacks, Milberg Weiss, Seymour Lazar, Steven Schulman

79 year old Seymour Lazar was indicted in June 2005 by federal prosecutors in hot pursuit of class action giant Milberg Weiss. Lazar was accused of receiving kickbacks from Milberg in exchange for serving repeatedly as lead plaintiff in the law firm's class action suits.

Unlike others in similarly uncomfortable positions, Lazar steadfastly refused to deal or talk. Now, as Lazar's trial is gearing up a series of hearings have been scheduled, and the first already concluded, to determine whether the ailing almost-octogenarian can reasonably withstand the rigors of the courtoom.

For further details on the Lazar trial, check out the New York Sun.

In related news, former Milberg partner and one of the individuals named in the firm's "kickback" indictment, Steven Schulman, has asked that the charges against him be dismissed. Schulman, along with former Milberg partner David Bershad faces charges including conspiracy, mail fraud, money laundering, obstruction of justice and tax violation . Schulman requested the dismissal of charges based on the claim that shareholders in lawsuits where lead plaintiffs received kickbacks suffered no actual harm.

For background on all of the above shenanigans, check out the tags below, which will take you to The Daily Caveat's past coverage of the long in coming Milberg indictment and all the colorful players it involves...

-- MDT

Labels: David Bershad, kickbacks, Melvyn Weiss, Milberg, Milberg Weiss, money laundering, Seymour Lazar, Steven Cooperman, Steven Schulman