Though his former law firm came under indictment more than a year ago and he himself appeared likely to face criminal charges, prominent trial lawyer William S. Lerach of the law firm, Milberg Weiss Bershad Hynes and Lerach LLP, slipped past the vetting of John Edwards' presidential campaign and was permitted to raise large amounts of money for the Democrat's 2008 bid.
Lerach, his family and members of his new law Lerach Coughlin law firm accounted for nearly $78,000 in donations to Edwards' campaign in the first half of this year, making the trial lawyer one of the North Carolina Democrat's leading "bundlers" of contributions.
In the midst of that fundraising, Lerach negotiated behind the scenes for a plea deal that was consummated on Tuesday and will send him to federal prison for at least 12 months on a conspiracy charge involving his past legal work as partner in the Milberg Weiss law firm.
Through it all, Edwards stood by his fellow trial lawyer and even took an action this spring that was helpful to his longtime financial supporter in a government matter WRT the SEC.
In May, Edwards used the bully pulpit of his presidential campaign to publicly pressure the SEC not to oppose Lerach's new law firm in a Supreme Court case over whether Lerach's lawsuits could proceed against banks on behalf of investors who lost millions in the collapse of energy giant Enron.
"The question for all Americans is whether their government will be on the side of those big banks or regular families," Edwards said in a statement that was trumpeted on the Web site of Lerach's law firm.
All of this transpired while Edwards campaigned against what he calls a "corroded and corrupt" Washington system in which politicians raise money from special interests who then seek their help on government matters. To make his point, Edwards campaign is refusing any donations from lobbyists registered in Washington.
SOURCE http://blog.washingtonpost.com/the-trail/2007/09/19/lawyer_in_plea_deal_was_edward.html
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Feb 28, 2010
Circle of greed; Lawyer William Lerach fought the fatcats, then he became one
By FERN SIEGEL, NY POST
For more than 20 years, William S. Lerach was the most feared lawyer in America. He and his former firm, Milberg Weiss, were Jedi masters of security law, targeting Fortune 500 companies for corporate fraud and recovering a staggering $45 billion in judgments.
Tough and relentless, plaintiffs saw him as a savior, successfully suing WorldCom, Tyco, Disney, Merrill Lynch and Enron, among others. Lerach brought down high-flying CEOs and companies that routinely cooked the books to keep executives rich and shareholders broke. Famous for his class-action suits and novel legal tactics, he was the scourge of big business, forcing many companies, terrified of being “Lerached,” to settle out of court rather than fight. But Lerach shared one trait with his adversaries: insatiable greed. He was on the hunt for Dick Cheney and Halliburton when the hunter became the hunted.
In January 2008, he pleaded guilty to conspiracy to obstruct justice, admitting he paid a few regular plaintiffs millions in kickbacks to instigate cases that netted the firm some $200 million over two decades. (No plaintiff can benefit more than others in class-action suits.) He was fined nearly $8 million and sentenced to two years in prison. Lerach was famous for tracking stock prices — charting fluctuations against optimistic statements and insider selling — before a stock crashed.
If company chiefs cashed in while investors lost their savings, Lerach smelled blood. If public investments were fueled by false claims, the charge was “fraud on the market.” Plus, any investment bank and Big 8 accounting firm that aided and abetted the principles were charged as secondary participants, unleashing a legal juggernaut.
Conservatives like Newt Gingrich and George W. Bush called Lerach’s methods “legalized extortion,” while shareholders saw him as an “avenging angel for the little people.” From the beginning, he sought justice for his clients — and an enormous fee for himself, often taking as much as 30% of a settlement. (His own fortune was estimated at $700 million.)
Still, Lerach claimed better results than the SEC: He got $1 billion from Drexel Burnham for clients; the SEC got $650 million. He earned a $750 million settlement from Washington Public Power, the SEC zero. By the mid-1980s, 31% of public companies and 42% of banks had security claims against them — and Lerach’s firm handled one-quarter of those cases.
His law partner (and later convicted felon) Mel Weiss was right: “Greed was a growth industry.” But when one of the law firm’s plaintiffs was charged with art theft and defrauding his insurance company, he gave the police a bigger prize: Lerach’s firm.
“Circle” details the massive payoffs and lavish lifestyle the four-time married workaholic Lerach enjoyed. Prison slowed him down, but didn’t diminish his fame. The biggest irony? He’s fielding offers from commercial insurers eager for his expertise on coverage policies. The moguls “he once feasted upon” want Lerach to protect them. Or maybe they just want to make sure he won’t get up to his old tricks. Lerach is expected to be released from prison next week.
BOOK REVIEW Circle of Greed; The Spectacular Rise and Fall of the Lawyer Who Brought Corporate America to Its Knees by Patrick Dillion and Carl M. Cannon (Broadway Books)
“His law partner (and later convicted felon) Mel Weiss was right: “Greed was a growth industry.” But when one of the law firm’s plaintiffs was charged with art theft and defrauding his insurance company, he gave the police a bigger prize: Lerach’s firm.”
LOL! Justice is served.
Crooks of a feather ... thanks, Liz !