Class-Action Lawyer sentenced | FerrariChat
Buy

Class-Action Lawyer sentenced

Discussion in 'Other Off Topic Forum' started by Larry99, Jun 10, 2008.

This site may earn a commission from merchant affiliate links, including eBay, Amazon, Skimlinks, and others.

  1. Larry99

    Larry99 Rookie

    Jun 10, 2008
    1
    #1 Larry99, Jun 10, 2008
    Melvyn I. Weiss, the prominent class-action lawyer, was sentenced on Monday to 30 months in prison by a Federal District Court judge in Los Angeles for his role in concealing illegal kickbacks to plaintiffs. He was also ordered to pay $9.8 million in forfeitures and $250,000 in fines.
    Mr. Weiss’s former partner, William S. Lerach, is serving a two-year sentence as a result of the same investigation, and other lawyers have pleaded guilty for roles in what prosecutors described as a criminal conspiracy that lasted for decades.
    Mr. Weiss, Mr. Lerach and the law firm that they built together dominated the lucrative field of securities class-action litigation, filing many lawsuits against publicly traded companies on behalf of investors who had lost money when share prices fell.
    “The Milberg Weiss trial lawyer scandal has exposed a potentially serious threat to the nation’s economy, but to date, the Democrat-controlled Congress has done nothing about it,” Representative John A. Boehner of Ohio, the Republican minority leader, said. “If in fact the crimes to which Mr. Weiss and his partner, William Lerach, have pled guilty are an ‘industry practice,’ as Mr. Lerach himself stated, then a clear and present threat to our economy is going unaddressed by Congress.”
    Milberg Weiss lawyers sued early and often, raking in a percentage of settlement amounts as their legal fees. Mr. Weiss and Mr. Lerach grew wealthy from the business.
    The payments meant that the lead plaintiffs stood to receive more money than they would if they had simply been members of the class, and that as a result they might not have looked out for the best interests of the entire class as lead plaintiffs are supposed to do.
    Prosecutors claimed that Mr. Weiss got $9.8 million as a result of the conspiracy.
    Mr. Weiss’s sentence of 30 months is slightly less than the 33 months called for in his plea agreement with prosecutors, but is longer than the sentence given to Mr. Lerach.
    “There are discretionary factors within a range set by sentencing guidelines,” said a member of Texans for Lawsuit Reform, an organization with Dick Weekley as Chairman.
    At his sentencing, Mr. Weiss expressed regret for his misconduct. According to The Associated Press, he told the presiding judge, John F. Walter, “My contrition is profound and genuine.”
     
  2. 2NA

    2NA F1 World Champ
    Consultant Owner Professional Ferrari Technician

    Dec 29, 2006
    18,221
    Twin Cities
    Full Name:
    Tim Keseluk
    #2 2NA, Jun 10, 2008
    No idea what's going on here.
     
  3. wax

    wax Five Time F1 World Champ
    Lifetime Rossa

    Jul 20, 2003
    52,417
    SFPD
    Full Name:
    Dirty Harry
    #3 wax, Jun 10, 2008
  4. robert biscan

    robert biscan F1 Veteran
    Silver Subscribed

    Jan 17, 2003
    5,082
    Nashville and Palm b
    Full Name:
    robert s biscan
    #4 robert biscan, Jun 10, 2008
    Justice is not really served here but it is a step in the right direction.
     
  5. SefacHotRodder

    SefacHotRodder F1 World Champ

    Dec 20, 2003
    11,158
    NJ
    Full Name:
    Chris
    #5 SefacHotRodder, Jun 10, 2008
    Just a side question. How come in some trials they list the sentance in months when others list in in years. This guy got 30 months. Why not just say 2.5 years?
     
  6. CornersWell

    CornersWell F1 Rookie

    Nov 24, 2004
    4,896
    #6 CornersWell, Jun 10, 2008
    Lerach and Weiss are well-known and long-time corporate extortionists. Another is Dickie Scruggs (Tobacco). Maybe also Peter Angelos (Asbestos). Actually, Scruggs is probably the biggest of the 4. Anyway, that's not to say that corporations don't do bad things and shouldn't be made to compensate for their bad acts. However, these guys stepped WAY over the line. While what Lerach and Weiss did is bad, Scruggs' bribing a judge was even worse. Either way, the shortcomings need to be addressed to maintain credibility.

    However, these small "wrist slaps" really aren't much of a disincentive. While I certainly wouldn't want to lose my freedom for 30 months, the monetary penalties are far too small. It's kind of like closing the gate after the horse has left the barn. They've made hundreds of millions of dollars over the years with these tactics. So, to pay only $9.8MM now is a pittance. Granted, they'll lose their law licenses, but they've made their big money, can always "consult" and are on the tail end of their careers anyway. So, crime does pay, regrettably.

    CW
     
  7. rollsorferrari?

    rollsorferrari? F1 Veteran

    Jun 5, 2006
    9,984
    St. Louis
    Full Name:
    Scott
    #7 rollsorferrari?, Jun 10, 2008
    i would imagine it's to give a full amount to the sentence. instead of saying "a year and a half" where the lawyers may argue about what the judge meant by a year and a half, so they'll say 18 months to clear up any possible confusion.
     
  8. djui5

    djui5 F1 Veteran

    Aug 9, 2006
    5,418
    Phoenix, Arizona
    #8 djui5, Jun 10, 2008
    Strange first post. Where does the linkey go? I'm not clicking it :)
     
  9. UroTrash

    UroTrash Four Time F1 World Champ
    Consultant Owner

    Jan 20, 2004
    40,487
    Purgatory
    Full Name:
    Clifford Gunboat
    #9 UroTrash, Jun 10, 2008
    That scoundrel has cost the country many times the 250 million he has taken directly.
     
  10. wax

    wax Five Time F1 World Champ
    Lifetime Rossa

    Jul 20, 2003
    52,417
    SFPD
    Full Name:
    Dirty Harry
    #10 wax, Jun 10, 2008
    It goes here.
    http://www.tlrfoundation.com/

    The first link I provided [on post 3] was to show that Weekley, Dick does indeed exist.

    ______

    I always right-click links to see "properties" - that will show actual address.
     
  11. ADON

    ADON Formula 3

    Feb 8, 2007
    1,059
    #11 ADON, Jun 10, 2008
    Wow, I would hate to be in prison with a name like "Dick Weekly". Some bubba will change that to Dick Nightly.
     
  12. PaulC

    PaulC Formula 3

    Feb 11, 2003
    1,407
    San Antonio, TX
    Full Name:
    Paul
    #12 PaulC, Jun 10, 2008
    that SOB sued my father's company so many times it is a joke. It was an exchange listed LP, and every year Weiss would file a class action for the share holdersclaiming the fees were too high. Every year he would settle for $1MM or so and the settlement fee would be passed right though to the shareholders. He deserves to be in jail.
     
  13. 62 250 GTO

    62 250 GTO F1 Veteran

    Jan 9, 2004
    7,765
    Nova Scotia Canada
    Full Name:
    Neil
    #13 62 250 GTO, Jun 10, 2008
    Why does the user only have one post? Does FChat allow link dropping? Hurmp.
     
  14. wax

    wax Five Time F1 World Champ
    Lifetime Rossa

    Jul 20, 2003
    52,417
    SFPD
    Full Name:
    Dirty Harry
    #14 wax, Jun 10, 2008
    "Case-by-case" - in this case, it's a worthy topic about worthless scum.

    It's plausible, possible and probable that's the only post he will make.

    Topic'll end up in subscribed B & I subforum, but,
    [A] just waiting a few days to see if second sentence is incorrect, at least for the time being...
    giving non-subscribed a whiff before topic goes to subscribed only.
     
  15. 62 250 GTO

    62 250 GTO F1 Veteran

    Jan 9, 2004
    7,765
    Nova Scotia Canada
    Full Name:
    Neil
    #15 62 250 GTO, Jun 10, 2008


    So link droppers aren't a concern? I thought all sites would remove these users and threads? No biggie for me, it just seems odd.
     

Share This Page