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Wednesday, May 24, 2006

About That $216 Million...

I'm no criminal defense lawyer and I have no sense for whether this is a likely result or not, but an article yesterday by Pam Smith in The Recorder flagged an issue related to the Milberg Weiss indictment that I had not focused on before.  With respect to the $216.1 million in attorneys fees that Milberg Weiss was awarded in settlements involving allegedly improper kickbacks to plaintiffs, well, the DOJ wants this "tainted" money to be forfeited to the United States.  All of it. 

As stated in paragraph 83 of the indictment,

Pursuant to Title 28, United States Code, Section 2461(c), Title 18, United States Code, Section 981(a)(1)(C), and Title 21, United States Code, Section 853, each of defendants MILBERG WEISS, DAVID J. BERSHAD, STEVEN G. SCHULMAN, and SEYMOUR M. LAZAR convicted under Count One of this Indictment shall forfeit to the United States any and all property, real or personal, which constitutes or is derived from proceeds traceable to such offense, including the following:

a. with respect to MILBERG WEISS, the more than approximately $ 216.1 million in attorneys’ fees obtained by MILBERG WEISS in the Lawsuits and litigation resolving the Lawsuits (the “tainted attorneys’ fees”).

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