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November 22, 2008 11:57:56 CST



Law Firm Escapes Criminal Charges in $75M Deal

Posted Jun 17, 08 7:41 CDT in US Crime & Courts 

(Newser) – Ducking criminal charges, law firm Milberg LLP will pay the government $75 million and admit wrongdoing in a settlement following a 2-year-old indictment, the Wall Street Journal reports. The firm, which deals with shareholders' class-action lawsuits, acknowledges it paid kickbacks to attract clients between 1979 and 2005, enabling the firm to reap $239 million in fees. The case names former partners, but no current ones.

“The settlement with Milberg reflects the seriousness of what was probably the longest-running scheme ever conducted by a law firm,” said a US attorney. Four ex-partners have pleaded guilty to paying kickbacks; one is in prison while another faces jail time. But “we can now say to courts and clients that we are not a firm under indictment,” said a Milberg rep.

Source Wall Street Journal

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Attorney Melvyn Weiss, co-founder of Milberg, right, and his attorney Benjamin Brafman, left, walk out of federal court in downtown Los Angeles, Friday, Oct. 12, 2007.   (AP Photo/Damian Dovarganes)
In this Oct. 12, 2007 file photo, attorney Melvyn Weiss, co-founder of Milberg, arrives at court in Los Angeles.   (AP Photo)
Lawyer Steven G. Schulman, center, a former senior partner at Milberg, arrives in federal court Tuesday, Oct. 9, 2007 in Los Angeles.   (AP Photo/Gus Ruelas)
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