March 11 -- March 12,
2010
"If the present Congress errs in too much talking, how can it be
otherwise
in a body to which the people send 150 lawyers,
whose trade it is to question everything, yield nothing, & talk
by the hour? That 150 lawyers should do business together ought
not to be expected."
--Thomas Jefferson, autobiography, 1821
GENERAL
Making legal aid more accessible and affordable
By
Gillian Hadfield
03-12-10 --
The United States stands largely alone in advanced-market
democracies in drastically restricting where and how people can
get help with their legal problems. In all states, under rules
created by bar associations and state supreme courts, only
people with law degrees and who are admitted to the state bar
can provide legal advice and services of any kind. . . . In
England, Australia and the Netherlands, by contrast, a wide
variety of professionals and experts can provide legal
assistance. . . . Nonprofit organizations as well as for-profit
firms can develop specialized expertise in particular areas of
legal need -- housing, immigration, debt-management, child
custody and so on. Often,
studies show, specialized non-lawyer providers
ultimately offer better service than the solo and small-firm
practitioners who do someone's taxes one day and provide
criminal defense the next. . . . In other countries, consumer
and community organizations can provide legal services, as can
unions and other workplace groups. Starting next year in
England, so too can large companies such as Tesco, the European
equivalent of Wal-Mart. There are online subscriber services
giving legal advice on employment or consumer problems. The
legal equivalent of TurboTax is probably just around the corner,
if not already on British computer screens. ****** The writer
is a professor of law and economics at the University of
Southern California and a visiting professor at Harvard Law
School.
Lehman Report Assigns Blame Far and Wide
Zach
Lowe, The American Lawyer
03-12-10 --
The independent examiner's report investigating the collapse of
Lehman Brothers is out (you can read it
here), and the snippets making early headlines
suggest the examiner,
Jenner & Block Chairman Anton Valukas, spreads the
blame around in his 2,200-page report. . . . Our colleagues at
The Am Law Litigation Daily will have more analysis
shortly. On first glance, it appears that Valukas has produced a
thorough report and cast a wide net of blame. The report, which
cost $38 million to produce, says that JPMorgan Chase and
Citigroup, as lenders to Lehman, contributed to the liquidity
crisis that drove it into bankruptcy. It also suggests that "a
limited amount" of Lehman assets were "improperly transferred"
to Barclays when the U.K. bank purchased Lehman's North American
operations just days after Lehman's bankruptcy filing on Sept.
15, 2008,
according to Bloomberg. It's unclear now what impact
that finding might have on Lehman's suit accusing Barclays of
getting an "improper windfall" in the deal.
Boies, Schiller & Flexner is representing Barclays in
that dispute;
Jones Day is representing Lehman.
Unwanted Attention: Linklaters Nabs Starring
Role in the Lehman Report
Zach
Lowe, The American Lawyer
03-12-10 --
For our purposes, the highlight of the 2,200-page (with
appendices)
report released Thursday that examines the demise of Lehman
Brothers starts at around page 700, when the examiner,
Jenner & Block chair Anton Valukas, delves into the
accounting tricks Lehman used to temporarily shift $50 billion
in bad assets off of its balance sheet. . . . This detail jumps
out at us because the report names
Linklaters as the only firm Lehman could find to
bless the transactions in the way Lehman wanted, according to
our reading of the report. (The
New York Times offers a similar analysis.) . . . The
transactions, which one Lehman exec characterized as "window
dressing" in an interview with Valukas' team, involved a
variation on standard repurchase agreements, or "repo" deals. In
a normal repo deal, a bank such as Lehman exchanges collateral
for cash and agrees to take back the collateral very soon after
the initial deal. The arrangement essentially works like a
short-term loan. The bank (Lehman in this instance) then uses
the cash to fund ongoing operations before taking back the
initial collateral and repaying the cash. (For a more thorough
description, complete with graphics, see the NYT link above).
Such deals are normally characterized as a form of financing,
meaning that the collateral stays on the bank's books for the
duration of the transaction.
Plaintiffs Lawyers Jockey for Venue in Massive
Toyota Litigation
Amanda Bronstad, The National Law Journal
03-11-10 --
Plaintiffs lawyers have been positioning themselves for a front
seat in the mounting litigation arising from the sudden
unintended acceleration problems in vehicles manufactured by
Toyota. . . . Approximately 150 lawyers assembled on Friday at
the InterContinental Chicago hotel to discuss sharing experts
and legal strategies in the Toyota litigation, which now
exceeds 80 lawsuits. Many of the lawyers have broken
into camps based on which jurisdiction they believe should hear
the multidistrict litigation against Toyota -- and, perhaps more
importantly, which judge should decide the cases. . . . One of
the most popular districts under consideration is the Central
District of California in Los Angeles, near the headquarters of
Toyota Motor Sales USA Inc. Lawyers supporting this locale
include products liability attorneys Mark Robinson Jr. and
Richard McCune as well as Toyota's lawyers, Cari Dawson and Lisa
Gilford, both partners at Atlanta's Alston & Bird. McClune was
the first into court against Toyota.
|
A
Victims-of-Law Advertiser |
ALABAMA
Federal grand jury closes King investigation
By
Sebastian Kitchen • Montgomery Advertiser
03-12-10 --
Alabama Attorney General Troy King said Thursday that his
personal lawyers have been informed that a federal grand jury
investigation of him and his office has been closed. . . . He
said the office of new U.S. Attorney Joyce Vance of the Northern
District of Alabama informed his attorneys that the
investigation has been concluded and the grand jury has
adjourned. . . . King, who stood next to his wife Paige as he
read a prepared statement, talked about the difficulties "many
months of intense scrutiny" and a protracted investigation had
caused him and his family. . . . He neither disclosed details
about what the investigation had concerned, nor took questions
from the media. . . . While this has been a long and often
stressful process, I never wavered in the knowledge that I have
conducted myself and the high office I hold in an honorable and
ethical fashion, and in accordance with the law," he said in the
prepared statement.
CALIFORNIA
DLA Piper Sued Over Associate's Alleged Discovery Snafu
Leigh Jones, The National Law Journal
03-12-10 --
What may have been a case of oversharing on the part of a
DLA Piper associate has dragged the firm into court
to defend a legal malpractice lawsuit. . . . A former client
claimed in a complaint filed on Tuesday that DLA Piper
unlawfully "rifled through" its files and disclosed confidential
information to a third party, resulting in about $1.2 million in
damages. . . . The client, George Sutton & Associates Inc., a
San Diego software company, alleged that DLA Piper breached its
fiduciary duty, unfairly charged more than $200,000 in legal
fees and cost Sutton a $1 million business deal.
Encino lawyer among hundreds arrested in insurance
scam
Scheme:
Suspects accused of staging
`paper accidents' to collect money.
By
Troy Anderson, Los Angeles Daily News Staff Writer
03-11-10 --
An Encino attorney, three chiropractors and a handful of legal
aides were arrested Thursday for alleged involvement in a
large-scale auto insurance fraud ring involving more than 300
suspects, authorities said Thursday. . . . Dubbed "Operation Big
Fish," the case is one of the largest in a string of auto
insurance fraud rings the District Attorney's Office has broken
up in recent years, Auto Insurance Fraud Division Deputy
District Attorney Gregory Alker said. . . . The defendants, one
of whom fainted when he opened the door to investigators
Thursday morning, are accused of defrauding 19 insurance
companies by filing false claims for staged accidents. The total
losses are estimated at $549,000, Alker said. . . . The ring
allegedly carried out what Alker called "paper accidents."
DISTRICT
OF COLUMBIA
Lawyer for 'D.C. Madam' Slapped With 3-Year Suspension
Jeff
Jeffrey, The National Law Journal
03-12-10 --
Montgomery Blair Sibley, best known for his
representation of the late "D.C. Madam" Deborah Jeane Palfrey,
had his law license
suspended for three years by the D.C. Court of Appeals
on Thursday. The court's decision is a reciprocal disciplinary
sanction that stems from a 2008 decision by the Supreme Court of
Florida to pull his license in that state for three years. . . .
Sibley's license was suspended in Florida because he failed to
pay more than $100,000 in child support payments and because he
repeatedly filed "vexatious and meritless" lawsuits against
judges who have been assigned his cases. Sibley has argued that
the Florida disciplinary process violated his due process rights
and failed to prove that his conduct warranted discipline.
Holder Did Not Disclose Briefs on ‘Enemy Combatant’
By
Charlie Savage and Bernie Becker, New York Times
03-11-10 --
During his confirmation last year, Attorney General Eric H.
Holder Jr. failed to notify the Senate that he had signed
several briefs urging courts to reject President George W.
Bush’s claim that he had the power to imprison an American
citizen as an “enemy combatant,” the Justice Department
acknowledged Thursday. . . . “The briefs should have been
disclosed as part of the confirmation process,” said Matthew
Miller, a Justice Department spokesman. “In preparing thousands
of pages for submission, it was unfortunately and inadvertently
missed. In any event, the attorney general has publicly
discussed his positions on detention policy on many occasions,
including at his confirmation hearing.” . . . But at a meeting
of the Senate Judiciary Committee, which held the confirmation
hearing, Republicans signaled that they were likely to attack
Mr. Holder over his joining the briefs — and his failure to list
them, along with other public documents, on a routine
confirmation questionnaire — when he testifies before them later
this month.
1-Year Suspension Recommended for Former Bush White
House Aide Over Theft Charge
Jeff
Jeffrey, The National Law Journal
03-11-10 --
The D.C. Board on Professional Responsibility has recommended to
the D.C. Court of Appeals that former White House aide Claude
Allen, who pleaded guilty in 2006 to one misdemeanor count of
theft of property under $500, be suspended from the practice of
law for one year. That suspension would be a much stiffer
penalty than the 90-day suspension
earlier recommended by a hearing committee. . . .
Allen, who worked for President George W. Bush, admitted that,
on three separate occasions, he bought an item at a Target
store, later went back to the store with the receipt, pulled an
identical item off the shelves, and used the receipt to "return"
it, allowing him to keep the purchased item at no cost.
According to the hearing committee's Nov. 19 report, Allen used
such means to steal a $525 Bose stereo, a $237 Kodak printer,
and an $88 RCA stereo in 2005.
|
A
Victims-of-Law Associate |
FLORIDA
Embattled Hillsborough County attorney now hit with Bar
complaint
By
Bill Varian, Times Staff Writer
03-12-10 --
Hillsborough County Attorney Renee Lee is now facing a complaint
with the Florida Bar Association in addition to a state criminal
investigation. . . . Hillsborough-based political consultant and
blogger Chris Ingram on Wednesday lodged a bar complaint
relating to the recent e-mail snooping allegations against Lee.
He claims her actions violate the Bar's rules governing
professional conduct. . . . Barnes has claimed that the e-mails
in question may have included information pertaining to his
review and a Florida Department of Law Enforcement investigation
of 1 percent pay raises that County Administrator Pat Bean
secretly awarded to herself and Lee in 2007. Lee had no business
looking at them, Ingram says.
Former Receiver Pleads Guilty to $2.6 Million Fraud,
Faces up to 14 Years
John
Pacenti, Daily Business Review
03-11-10 --
Lewis Freeman made some desperate phone calls to friends and
family last August. . . . He needed $1 million. . . . The
attorney-accountant had to hustle to make up for a shortfall in
a fraud case in which his Miami firm had been appointed
receiver. Freeman had stolen $1.5 million from the receivership
of Hess Kennedy, a debt settlement firm closed down by the
Florida attorney general's office. It turned out he had been
moving money around from his court-supervised accounts for more
than a decade, while pilfering $2.6 million from creditors and
victims of fraud. . . . But then the Hess Kennedy marker came
due. . . . "The scheme fell apart when several courts asked him
to make distributions on fiduciary matters, and Freeman was
unable to do so because he stole too much money," Assistant U.S.
Attorney Andrew Levi told U.S. District Judge Paul C. Huck.
Former RRA Partner to Answer Questions on Payments
From Convicted Fraudster
Says defense attorney, 'At the
end of the day, he is as much a victim as anyone else is in this
case'
Jordana Mishory, Daily Business Review
03-11-10 --
Former Rothstein Rosenfeldt Adler partner Steve Lippman has
agreed to sit for a deposition without invoking his Fifth
Amendment rights when questioned about money received from his
former boss,
convicted fraudster Scott Rothstein. . . . A hearing
was set Wednesday on Lippman's request to postpone a deposition
sought by the law firm's bankruptcy trustee, but attorneys
arrived in court with an agreement on how to proceed. . . .
Lippman's attorney in the bankruptcy case, Patrick Scott of
GrayRobinson in Fort Lauderdale, Fla., said afterward
that his client "denies any complicity in Rothstein's scheme."
He did not elaborate.
INDIANA
Indiana attorney arrested and charged with distributing child
pornography
ethiopianreview.com
03-12-10 --
A local attorney accused of possessing and distributing child
pornography was arrested and charged in federal court Tuesday.
The charges resulted from an investigation conducted by U.S.
Immigration and Customs Enforcement (ICE). . . . Samuel Hasler,
50, of Anderson, Ind., was arrested March 9 and charged with two
counts of distributing child pornography and one count of
possessing child pornography. . . . According to the criminal
complaint, Hasler allegedly distributed multiple images of child
pornography via the Internet in December to a person in another
state. On Feb. 14, Hasler sent additional images of child
pornography from his computer to a police officer working in an
undercover capacity. . . . On March 9, ICE agents executed a
federal search warrant at Hasler’s law office in Anderson.
During the search, agents recovered images and videos of child
pornography contained on an external hard drive in Hasler’s law
office. The complaint does not allege that Hasler produced the
child pornography.
MINNESOTA
St. Cloud lawyer reprimanded
By
TaLeiza Calloway • St. Cloud Times
03-12-10 --
Attorney Chad Michael Roggeman of St. Cloud was publicly
reprimanded Thursday and placed on supervised probation for two
years by the Minnesota Supreme Court. . . . The Office of
Lawyers Professional Responsibility filed a petition for
disciplinary action against him, citing neglect of a client
matter, failure to keep that client informed and
misrepresentations to cover the errors, according to court
documents.
MISSISSIPPI
Mississippi attorney disbarred in misconduct case
The
Associated Press, SunHerald.com
03-11-10 --
The Mississippi Supreme Court on Thursday upheld the disbarment
of a prominent Mississippi lawyer amid allegations he mixed his
personal and business funds with the funds of his clients. . . .
The Mississippi Bar filed the complaint against James McIntyre
of Jackson in 2008. . . . McIntyre had been a member of the
Mississippi Bar Association since 1965. . . . Mississippi Bar
Association attorney Adam Kilgore said a disbarred attorney can
seek reinstatement after three years. . . . McIntyre represented
one-time Ku Klux Klan leader Edgar Ray Killen in 2005 during
Killen's trial in the 1964 slayings of three civil rights
workers in Neshoba County. Killen was convicted of manslaughter
in the deaths of Michael Schwerner, James Chaney and Andrew
Goodman. . . .The tribunal that disbarred McIntyre noted that he
admitted during a Bar Association investigation that he
commingled funds, wrote checks from his lawyer trust account for
personal expenses and used his trust account to over personal
debts.
Miss. jury: Lawyers committed fraud in lawsuit
By
Holbrook Mohr, The Associated Press, BusinessWeek
03-11-10 --
Two Mississippi plaintiffs lawyers, including a former state
lawmaker, committed fraud during an asbestos lawsuit they filed
in 2001 and should pay Illinois Central Railroad Co. $420,000 in
damages, a federal jury has decided. . . . Illinois Central
claimed McComb attorneys William Guy and Thomas Brock knew their
clients lied about their involvement in an earlier landmark
asbestos case when they were questioned during the railroad
lawsuit. . . . Guy is a well-known attorney who served two terms
as a state representative in the late 1960s and 1970s before
moving to the Senate for one term. He ran unsuccessfully for
lieutenant governor as a Democrat in 1995. . . . The jury made
its decision Monday. It awarded Illinois Central actual and
punitive damages, finding the lawyers responsible for the fraud.
The company asked the court Wednesday to force the lawyers to
pay another $145,000 in interest.
NEW
JERSEY
Solo Punished for Paying Paralegal a Percentage of Fees
Henry Gottlieb, New Jersey Law Journal
03-11-10 --
After practicing law for 57 years, Martin Burger learned
something new. You can be reprimanded by the Supreme Court for
paying paralegals a percentage of fees on cases they bring in. .
. . He also learned the punishment could have been worse. . . .
In an order made public on March 5, the justices adopted the
Disciplinary Review Board's finding that Burger, a Paramus,
N.J., solo, capitalized on paralegal Lita Biederman's contacts
in the Filipino community to generate immigration cases. . . .
Burger paid her half the fees he collected in her cases, plus
$200 per week for general secretarial duties. Those included
filling out forms and sometimes acting as interpreter for
Tagalog-speaking Filipino clients. . . . Between 2000 and 2006,
Burger paid $230,000 to an entity Biederman controlled, Darius
Group. . . . Burger violated Rule of Professional Conduct
5.4(a), the prohibition against sharing fees with
nonlawyer employees, and RPC
7.3(d), the stricture against giving something of
value to a person to obtain a client, the DRB found in
Matter of Martin Burger, 09-243.
NEW
YORK
Business Partner Convicted in Murder of Attorney
Vesselin Mitev, New York Law Journal
03-12-10 --
A Suffolk County, N.Y., jury on Monday convicted the business
partner of a Long Island lawyer who was shot and killed in the
parking lot of a Korean restaurant in October 2008 for arranging
the hit. Ronald Thornton of Nesconset, N.Y., was found guilty of
first-degree murder and conspiracy in the death of James
DiMartino, who worked for Nationwide Court Services.
Ex-Kasowitz Partner Pitcock on Patent Suit Against
Google, Facebook
Drew
Combs, The American Lawyer
03-11-10 --
Former
Kasowitz, Benson, Torres & Friedman partner Jeremy
Pitcock is back in the news -- and this time it's for his role
as a litigator, not a litigant. . . . Pitcock filed a patent
infringement lawsuit Monday in Manhattan federal court on behalf
of his client Wireless Ink Corp. against Google Inc. and
Facebook Inc., according to
this Bloomberg article. In its complaint, Wireless
Ink, which operates a mobile content management and social
networking software company called Winksite, alleges that
Facebook's Facebook Mobile application and Google's Google Buzz
infringe on one of its patents. . . . Google and Facebook were
likely aware of the patent, which Wireless Ink says it was
issued in October, "given the time and resources defendants have
invested in their desktop and mobile Web sites as well as their
strategic importance," according to the complaint.
NORTH
CAROLINA
Lawyer ordered to home confinement again
by
Cheryl Caswell, Daily Mail staff
03-12-10 --
A circuit judge has doubled the bond and again ordered home
confinement for a Charleston lawyer accused of chasing and
battering a client with a baseball bat. . . . Joshua Robinson
was apprehended at his Lee Street home by police and more than a
dozen SWAT team members after he failed to post bond or report
to jail this week. . . . An officer told the judge Thursday that
when officers entered the house more than five hours after he
was to turn himself in, they found Robinson in bed with his wife
eating pizza and watching television. The living room was full
of packing boxes. . . . It was the third court appearance for
Robinson in less than a week before Judge Louis "Duke" Bloom.
This time, he said he misunderstood where and when he was to
turn himself in.
TEXAS
Houston lawyer loses big in Internet scam
by
Jeff McShan / 11 News
03-12-10 --
A successful Houston lawyer says he fell for an elaborate
Internet scam that ended up costing him $182,500. . . . Houston
attorney Richard T. Howell, a law partner at Buckley, White,
Castaneda and Howell, says he would rather not be in the news,
because what happened to him is embarrassing to say the least.
But hoping others won’t fall into the same trap, Howell decided
to sit down and talk with 11 News. . . . “I’ve had to put a
second lien on my house. It has been an extremely stressful time
for both my wife and I,” Howell said. . . . It all began when
Howell received an e-mail from a company, 8,000 miles away, that
wanted him to legally pursue four of its U.S. customers who owed
it money. . . . “The e-mail said this is a Hong Kong company and
we would like to retain you as counsel,” Howell said. “And they
gave me the customers names for a total debt of about $4
million.” . . . The Hong Kong company he was corresponding with
had a Web site, and its customers were all legitimate U.S.
companies with Web sites, Howell said. . . . “I mean in a
perfect world, I guess I could have said, ‘Come over here and
meet me in Houston.’ But I have met tons of my clients -- a
number of my clients I’ve never met that are out of state, or
out of the country. I mean, that is not unusual at all,” Howell
said. . . . So when Dallas attorney Raul Loya eceived a similar
e-mail, he said he was interested, too. . . . “They need someone
to help recoup their losses in the U.S.,” Loya sad. . . . Both
lawyers signed contracts with their overseas client and
exchanged e-mails and documentation regarding the debt that was
involved.
Former City Attorney Suspected in Dallas Office
Shootings Dies
The
Associated Press, Law.com
03-11-10 --
Dallas police say a former city attorney accused of shooting a
father and son inside their financial business has died from a
self-inflicted gunshot wound. . . . Sr. Cpl. Kevin Janse said
60-year-old Robert Mustard died early Wednesday afternoon. . . .
Police say Mustard turned the gun on himself after shooting
66-year-old Richard Smith and 39-year-old Christopher Smith on
Monday. Mustard would have faced aggravated assault charges, but
Janse says those charges won't be filed now.
|
 
A
Victims-of-Law Associate |
March 9 -- March 10,
2010
GENERAL
In Search of Volunteer Lawyers for Death Row Inmates
By
Tony Mauro | The Blog of Legal Times | New York Lawyer
03-10-10 --
For several months last year Robin Maher, director of the
American Bar Association Death Penalty Representation Project
was feeling like the proverbial Maytag repairman. "I could not
even get a return phone call," she said, from law firms she had
called in search of volunteers to help the hundreds of death row
inmates nationwide who are without counsel. "I think there was a
lot of uncertainty about layoffs and other changes that made law
firms reluctant to commit to new pro bono projects," Maher said
in an interview. . . . Unfortunately, at the same time, the
economic downturn has also made the need for pro bono lawyers
greater than ever, she said. "Reductions in state and county
budgets mean that defender offices with crushing workloads and
inadequate funding are struggling more than ever to represent
poor people facing death sentences." The project receives
numerous letters from prisoners and public defenders every week,
she said. Despite having recruited hundreds of private firm
lawyers over the years, she added, "We do not have nearly enough
to meet the tremendous need."
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Freed gadfly lawyer Lerach warns of more Wall Street
fraud
Alexandria Sage, Reuters
03-08-10 --
His debt to society finally paid in full, William Lerach, the
fiery shareholder litigator who exposed the excesses of Enron
before running afoul of the law himself, warned of another wave
of financial fraud emerging on an unregulated Wall Street. . . .
Lerach, whose name for years sent shudders through many a
corporate boardroom before his too aggressive tactics landed him
a two-year jail sentence, became a free man this week, eager to
again take America Inc to task. . . . He blasted Wall Street for
everything from inflated salaries leading to risky behavior to a
lack of responsibility to society, shareholders and even their
own companies. . . . "There will be another financial fraud wave
if serious changes aren't made," the 63-year-old disbarred
lawyer said. "We keep repeating the same mistakes. There is no
real legal or economic accountability of the people on Wall
Street." . . . He was pessimistic of any significant
strengthening of financial regulation: "Nothing really
meaningful, in my opinion, will happen on the regulation front."
. . . Lerach admits to serious missteps of his own. He served
time for a kickback scheme in which shareholders were paid to
act as plaintiffs in class-action cases. . . . In an exclusive
interview, he said he regretted his mistakes but remained proud
of his courtroom successes.
CALIFORNIA
Jailed at 70, lawyer is trouble for judges
By
Dan Walters / The Sacramento Bee
03-09-10 --
Los Angeles County Sheriff Lee Baca released hundreds of jail
inmates last week before their terms were up, citing county
budget problems. . . . However, 70-year-old Richard Fine was not
among them. Instead, last week he marked the one-year
anniversary of being clapped into a small and windowless
solitary confinement cell for what a local judge declared to be
contempt of court. . . . Fine is an antitrust attorney who has
been a persistent critic of Los Angeles County's practice of
giving judges nearly $50,000 a year in extra pay over their
state-paid salaries. He's alleged that when the county
government is a party to a lawsuit, it's a conflict of interest
for judges to hear the case and a conflict for them to hear any
cases involving him because of his criticism. . . . In 2008, a
state appellate court ruled in a case brought by another party
that giving judges extra payments violated the state
constitution. A year ago, however, the Legislature attached to
its budget package a bill authorizing the extra payments,
including those already made. . . . A few days after the
legislation was enacted, Superior Court Judge David Yaffe, who
had refused to recuse himself from a Fine case, sentenced him to
jail indefinitely for contempt, citing a refusal to provide
personal financial information in a dispute over attorney fees.
Judge Chastises McKesson Exec's Defense Team but
Reins In Prosecution
Dan
Levine, The Recorder
03-09-10 --
Former McKesson HBOC Chairman Charles McCall got 10 years for
securities fraud Friday, even though federal prosecutors had
sought 15 years and the probation office thought he deserved
even more than that. . . . McCall is the last defendant to be
sentenced in a decade-long case involving cooked books at the
company. In fashioning McCall's punishment, Northern District of
California Judge William Alsup stressed the need to deter
corporate executives from committing these kinds of crimes.
However, he said McCall's crimes -- while serious -- are not the
same as those perpetrated by the
likes of Bernard Madoff. McKesson HBOC was a real
company with real products, Alsup said, while Madoff's business
was a total sham. . . . "It is easy for the government to get
carried away," Alsup said. . . . But Alsup trained heavy fire on
McCall's defense team, led by Ted Wells of Paul, Weiss, Rifkind,
Wharton & Garrison, for trying to keep McCall out of prison
pending appeal. Alsup called an attempt to quibble with his jury
instructions "frivolous," and dinged the defense team for
failing to preserve objections during trial.
FLORIDA
How to Get Attorneys to Read Something: E-Mail Them Telling Them
Not to
Daily Business Review
03-09-10 --
Is Fowler White Burnett a foe of the First Amendment? . . . The
firm sent out an e-mail to all its attorneys telling them they
should not open and read a
Daily Business Review article last month about the
firm and one of its attorneys, Lilly Ann Sanchez, according to a
lawyer in the firm's Miami office. . . . That story detailed a
juicy lawsuit filed against the firm and Sanchez, head of the
firm's white-collar division and a former federal prosecutor.
The suit was filed by the former in-laws of Oscar Rivero, a
Miami attorney-developer who was jailed for misusing $700,000
out of $3 million he was paid by the Miami-Dade Housing Agency
to build affordable housing for senior citizens. Rivero admitted
diverting public money to build himself a dream house in South
Miami.
|
A Victims-of-Law Associate |
GEORGIA
Indictments Dismissed Against Lawyers Charged in 'Slayer
Statute' Case
Prosecutor says decision may
leave room for one of the original seven criminal counts to
survive
Greg
Land, Fulton County Daily Report
03-10-10 --
The Georgia Supreme Court last week ruled that
criminal indictments against two Carroll County lawyers
must be dismissed, ordering the state Court of Appeals to
reverse its prior ruling allowing the indictments to stand. . .
. According to the Carroll County pair's attorneys, the high
court's move puts to rest a case that Georgia's criminal defense
bar worried could threaten the livelihoods -- and liberty -- of
lawyers whose clients are ultimately convicted. . . . "The order
of the Supreme Court demands that the bill of indictment against
both attorneys be dismissed with prejudice," said Brian Steel,
whose client, Valerie C. Cooke, was charged along with Candace
E. Rader in twin seven-count indictments. The women were accused
of stealing from the estate of a murder victim by accepting
legal fees from his wife, who first inherited her husband's
estate but ultimately pleaded guilty to a murder-for-hire plot.
ILLINOIS
Greenberg Traurig Terminates Partner Facing
Theft-of-Services Charges
Brian Baxter, The American Lawyer
03-09-10 --
Mark McCombs, a government affairs partner in the Chicago office
of
Greenberg Traurig, was charged by state prosecutors
in Illinois on Friday with bilking more than $1 million from a
Chicago suburb through inflated legal bills,
according to a report in the Chicago Tribune.
McCombs, 50, was arrested at his condo on Chicago's Near West
Side, the paper reported. . . . In a statement released late
Friday, Greenberg Traurig said "upon learning of these charges,
the law firm severed connections" with McCombs. The firm is
fully cooperating with the investigation into the charges. . . .
Cook County prosecutors
claim, in a press release sent to local Chicago papers,
that, since 2003, McCombs capitalized on his personal and
professional contacts with officials in Calumet Park to steal
more than $1 million in tax increment finance funds. Most of the
bills, the paper said, were for work that was never performed.
Developer accused of bribery loses bid to block
ex-lawyer's testimony
By
Natasha Korecki, Chicago Sun-Times Staff Reporter
03-09-10 --
Jury selection in the corruption trial of a Chicago developer is
expected to begin today after he lost a bid to block his former
lawyer from testifying against him. . . . The trial of Calvin
Boender, accused of bribing a Chicago alderman, was put on hold
Monday as Boender asked the appeals court to block his onetime
lawyer from taking the stand against him, saying it violated his
attorney-client privilege. . . . The appeals court refused to
hear the issue. . . . U.S. District Judge Robert M. Dow ruled
that former Boender attorney Dan Reidy can testify about a
document prosecutors say he gave them when he represented
Boender. . . . Boender is accused of paying for $40,000 in
repairs to Ald. Ike Carothers' home, allegedly in exchange for a
zoning change.
|
A
Victims-of-Law Associate |
NEW
HAMPSHIRE
Former NH Lawyer Gets 4 Years 3 Months For Fraud
AP,
WBZ
03-10-10 --
A once prominent New Hampshire attorney and former Manchester
city water commissioner is headed to federal prison for more
than four years. . . . Thomas J. Tessier was sentenced Tuesday
in federal court in Concord as part of a plea deal with federal
prosecutors. . . . Tessier pleaded guilty in November to charges
of bank and mail fraud and money laundering in connection with
what prosecutors said was defrauding a client of $2.3 million
over several years.
NEW
JERSEY
N.J. High Court Weighs Title Insurer's Liability for Attorney's
Theft of Client Funds
Michael Booth, New Jersey Law Journal
03-10-10 --
The New Jersey Supreme Court is deciding if a title insurer can
be held liable for a lawyer's theft of a home buyer's funds if
it fails to tell the buyer directly it is not responsible for
the lawyer's misdeeds. . . . The case, Lawyers Funds for
Client Protection v. Stewart Title Guaranty Co., A-44-09,
argued Monday, is being closely watched by the title industry,
which could become a deep pocket for fleeced clients if the
appeals court ruling below is allowed to stand. . . . Stuart and
Susan Goodman hired Richard Pizzi, their neighbor in Bedminster,
N.J., to represent them in the purchase of a new home in
Somerset in 2003. They sold their existing home and gave the net
proceeds to Pizzi, but he stole them. The theft was not
discovered until his trust account checks bounced. . . . Pizzi
was disbarred by consent in 2005.
The Lawyers' Fund for Client Protection awarded the
Goodmans $307,456 and then moved for reimbursement from Stewart
Title Guaranty Co.
NEW
YORK
Lawyer Pleads Guilty to Tax Fraud
Joel
Stashenko, New York Law Journal
03-10-10 --
A central New York attorney active in defending women's and gay
rights pleaded guilty Monday to a Class E felony
tax fraud charge that will result in her disbarment.
. . . Bonnie Strunk, 62, of DeWitt, N.Y., admitted to
fourth-degree criminal tax fraud before Supreme Court Justice
John Brunetti in Syracuse. Strunk acknowledged in court that she
failed to file a personal income tax return for 2008.
Prosecutors contended she owed about $11,700 in taxes.
N.Y. Appellate Panel Affirms Suit Over Alleged
Promise to Pay Client's Fee
Firm had sued former client for
fees it said it earned in representing her as a potential
witness in a $78 million lawsuit brought by Merrill Lynch
against a wealthy South American family
Daniel Wise, New York Law Journal
03-10-10 --
An attorney who conveys an alleged agreement to cover the legal
costs of another lawyer's client can be held liable for unpaid
fees, a unanimous panel of the Appellate Division, 1st
Department, ruled Tuesday. . . . The decision allows the firm of
DePetris & Bachrach to pursue claims against the Shiboleth law
firm and one of its lawyers, Charles B. Manuel, that they had
promised that their clients would make good on DePetris &
Bachrach's fees. . . . The ruling in
DePetris & Bachrach v. Manuel, 111194/08,
reverses the ruling of Justice Paul G. Feinman in Manhattan who
had dismissed the four causes of action the DePetris firm has
asserted against Shiboleth and Manuel. . . . DePetris & Bachrach
sued former client Claudia Srour for fees it said it earned in
representing her as a potential witness in a $78 million lawsuit
brought by Merrill Lynch against a wealthy South American
family.
Jury Convicts In Murder Of Attorney
North Country Gazette
03-09-10 --
A Suffolk County jury has convicted Ronald Thornton of Nesconset
of first degree murder and conspiracy for arranging the murder
of his business partner James DiMartino, a 44-year-old attorney,
in the parking lot of a Korean restaurant in Commack on Oct.20,
2008. . . . Suffolk County District Attorney Thomas Spota said
he will recommend Thornton receives life in prison without
parole when the defendant is sentenced April 14. . . . “This
victim was executed in a parking lot, leaving a widow and four
young girls,” Spota said. “The defendant deserves the maximum
punishment the law allows”.
Lawyers Indicted In MTA Swindle
Former Brooklyn A.D.A. and Head
Transit Tort Lawyer Charged
by
Brooklyn Eagle
03-09-10 --
Kings County District Attorney Charles J. Hynes and Metropolitan
Transportation Authority Inspector General Barry L. Kluger held
a press conference Tuesday announcing two indictments against
three people charged with scamming the New York City Transit
Authority (NYCTA) out of more than $150,000 in two separate
schemes carried out over the course of four years. . . .
“Jacqueline Jackson, whose job it was to save taxpayers money by
fighting frivolous lawsuits against the NYCTA, cost those
taxpayers money, by stealing from the very agency that hired
her,” Hynes said. *****Defendant Joyce Ilarraza, 63, owned a
record retrieval company — AJI Records Retrieval. Defendant John
E. Headley, 45, owned a company — Advance IME Co. — which
provided the Torts Division of the NYCTA Law Department with
independent medical examinations, medical records and expert
witnesses, to testify at trials. . . . Headley allegedly
operated Advance IME under the false name, James Douglas,
because, as an outside counsel for the NYCTA working on matters
requiring independent medical examinations, it was necessary for
him to conceal his involvement in the company, according to the
indictment.
NORTH
CAROLINA
Warrant: Ex-DA Stashed Dismissals, Impersonated Cop
By
Sarah Randag
, ABA Journal
03-10-10 --
The North Carolina State Bureau of Investigation says that a
recently retired county district attorney kept a file of
citations he had dismissed and referred to it to call in favors.
. . . The SBI began its probe of Person-Caswell County District
Attorney Joel Brewer last fall, and released a warrant affidavit
in that investigation Tuesday, the
Herald-Sun reported. Brewer announced his retirement
last week, with eight months left in his term, the
Danville News reported. . . . According to the
affidavit, an unnamed witness "familiar with the workings of the
district attorney's office" told the SBI that Brewer would
routinely dismiss minor citations and traffic charges for people
and keep copies of them in a manila file folder in his office.
At election time, he would refer to the folder and call "some of
those for whom he has dismissed charges, reminding them of what
he did, and asked them for their vote and/or for their help
while working the polls."
OHIO
Two former attorney general aids fined, will assist with
criminal probe
by
Marc Kovac, Capital Bureau Chief, Hudson Hub-Times
03-10-10 --
Former Attorney General Marc Dann's chief of staff and
communications manager were fined March 4 for ethics charges
that surfaced as part of the scandal that led to Dann's eventual
resignation. . . . Edgar Simpson will have to pay $1,000 for
failing to disclose income on a required state ethics form,
while Leo Jennings will pay $2,000 for failing to properly file
forms and accepting improper compensation while working in the
Attorney General's Office. . . . Both received suspended jail
sentences for the crimes, and Jennings will have to complete 250
hours of community service as part of his punishment. . . . Both
also have committed to assisting in future investigations that
may lead to further criminal charges against others.
Lawyer's crimes tap victims' fund
Payouts to former clients of Ken
Lawson are among Hamilton County's highest
By
Dan Horn • Cincinnati.com
03-09-10 --
Cincinnati lawyer Ken Lawson's former clients have now received
more than $200,000 from a state fund that covers victims of
attorney theft. . . . The 28 individual claims that have been
paid so far are a record for Hamilton County and the total
dollar amount is the second-highest for the county in the
24-year history of Ohio's Clients' Security Fund. . . . The
fund, which released the figures Tuesday, is supported by
registration fees paid by Ohio attorneys and does not receive
taxpayer money. . . . State officials would not discuss pending
claims against Lawson, so more payouts could be on the way.
Officials at the Cincinnati Bar Association, which investigated
more than a dozen grievances against Lawson, have said his case
is among the largest they have seen in terms of victims.
PENNSYLVANIA
Local lawyer Urbanski disbarred by top court
By
Terrie Morgan-Besecker, Wilkes Barre Times-Leader Law & Order
Reporter
03-09-10 --
A Kingston attorney with a history of disciplinary problems has
been disbarred from practicing law by the state Supreme Court. .
. . The action, taken against Stephen K. Urbanski, stems from a
series of complaints that were filed against him by clients
dating back to 2000. . . . Urbanski, who had a law office on
Pierce Street, was accused of taking money from several clients,
then failing to perform the work they had paid for, according to
a report prepared by the Disciplinary Board of the state Supreme
Court. . . . According to the report, between 2005 and 2007
Urbanski took money from three clients related to a divorce
case, landlord tenant dispute and a request to expunge a
criminal record, then failed to perform the required work on the
cases. . . . The actions were the latest in a series of
disciplinary problems Urbanski has had dating back to 2000, when
he was admonished for failing to communicate with clients,
surrender files and return unearned funds, the report says.
Disbarred Attorney Sentenced to 21 Months for Estate
Thefts
The
Associated Press, Law.com
03-09-10 --
A disbarred Erie, Pa., attorney has been sentenced to 21 months
in federal prison for stealing nearly $200,000 from estate
clients. . . . Sixty-two-year-old J. Gregory Moore pleaded
guilty in November and consented to disbarment in July. . . .
Authorities say Moore went to the Erie County district
attorney's office in March to announce that he had drained money
from one woman's estate. Moore's confession came during a state
Disciplinary Board investigation and led the DA to refer the
case to federal prosecutors, who indicted him on mail fraud
charges involving multiple clients.
TEXAS
Prosecutors to Seek Indictment Against Attorney for Murder of
Former Partner's Ex-Wife
Mary
Alice Robbins, Texas Lawyer
03-10-10 --
Dallas County prosecutors will seek an indictment for murder
against plaintiffs attorney Scott Marshall in connection with
the Dec. 20, 2009,
shooting death of Staci Montgomery, the ex-wife of
Marshall's former law partner, Bady Sassin. According to an
e-mail from Jamille Bradfield, spokeswoman for the Dallas County
district attorney's office, prosecutors will present the case
against Marshall to a grand jury on Friday. . . . Montgomery’s
death occurred as the two former partners were engaged in a
legal battle. Sassin filed Sassin Law Firm v. Marshall Law Firm
in August 2009, alleging that Marshall did not hold up his end
of the partnership after they agreed to start Marshall Sassin in
January 2009. In his first amended petition, Sassin accuses
Marshall of fraudulent inducement and breach of contract, among
other things -- allegations Marshall denies in his response and
countersuit.
Former Rockwall DA Ray Sumrow paroled after serving
fraction of sentence
By
Richard Abshire / The Dallas Morning News
03-10-10 --
See a man off to prison with a 15-year sentence, you expect him
to stay gone awhile. Which is why some in Rockwall are surprised
to hear that Ray Sumrow is out on parole after 20 months. . . .
His convictions resulted in a 15-year sentence, but he's now on
parole after serving 20 months. . . . Sumrow, 60, was the
sixth-term Republican district attorney in Rockwall when
convicted twice in 2008. . . . Prison and parole officials said
Sumrow qualified for parole based on a formula that weighs the
nature of his crimes and the sum of "flat time," the actual
number of days he served, plus "good time" plus "work time." . .
. Sumrow is appealing a March 2008 conviction in which he was
accused of stealing $9,652 in computer equipment and money from
a county account. He was later found guilty of diverting $68,000
in state money into his personal checking account between
November 2003 and June 2004. He finished paying the money back
in December 2004, after apparently using it to cover personal
expenses and to avoid bank overdrafts.
Charges in Dallas Office Shooting Depend on
Suspect's Recovery
The
Associated Press, Law.com
03-10-10 --
Dallas police say charges against a former city attorney accused
of shooting a father and son inside their financial business are
on hold because the accused gunman isn't expected to survive. .
. . Police say Robert Mustard shot himself in the head after
shooting the others Monday. The 60-year-old was in intensive
care Tuesday. . . . Police Sr. Cpl. Kevin Janse says aggravated
assault charges won't be filed if Mustard dies. . . . Police say
Mustard turned the gun on himself after shooting 66-year-old
Richard Smith and 39-year-old Christopher Smith. Richard Smith
was shot four times in the legs. His son was shot in the head
and neck. Both remained hospitalized but stable Tuesday.
Houston lawyer wants airport to pay for coat he left
at food court
By
David Yates, Southeast Texas Record
03-09-10 --
Most airports remind passengers not to leave their baggage
unattended. However, one plaintiff's attorney is contending it
was also the airport's responsibility to remind him not to leave
his pricey coat unattended. . . . William Ogletree, a Houston
trial lawyer who worked in Beaumont at one time, sent a warning
letter to the city of Houston, Continental Airlines and
Westfield Concession Management on Jan. 18, threatening to sue
all three entities if they did not pony up $800 for the
"expensive black leather coat" he left behind while catching a
flight to Las Vegas. . . . According to the two-page letter
published by The Smoking Gun, on Dec. 30 while on his way to
Gate C-19, Ogletree writes that he left his Polo coat at a
Houston Intercontinental Airport food court while grabbing a
slice of pizza. He never found it. . . . "I have diligently
attempted but failed to determine which (of the three entities)
is responsible for the area and who should have collected the
coat, kept it in a secure place and held it for a reasonable
period of time for the owner to locate it," the letter states.
UTAH
SLC lawyer accused of visa fraud arrested after taking Mexico
trip
By
Pamela Manson, The Salt Lake Tribune
03-09-10 --
After he was indicted last year on visa fraud charges, Salt Lake
City attorney James Hector Alcala was allowed to remain free if
he stayed in Utah and wore an electronic monitor, among other
conditions. . . . The lawyer now is facing time behind bars even
before he gets to trial. On Tuesday, Alcala admitted at a
hearing in federal court that he had traveled to Mexico, where
he met with clients applying for U.S. work permits and took
photos of the perimeter of the American consulate in Ciudad
Juarez. . . . But Alcala insisted he had no intention of
violating his pretrial release conditions. He asked U.S.
Magistrate David Nuffer "to have mercy" and release him from
jail, where he landed after his arrest on Friday.
WEST
VIRGINIA
Lawyer in client-beating case arrested after failing to post
bond
Witnesses claim attorney
repeatedly hit man with baseball bat
by
Cheryl Caswell, Daily Mail staff
March 9, 2010
03-09-10 --
Charleston attorney Joshua Robinson, who is charged with beating
a client with a baseball bat, had to be arrested after failing
to either post bond or report to jail on Monday. . . . Earlier
in the day, Robinson had been placed on home confinement until
his trial next month. Bond was set at $25,000 with a 10 percent
cash option and a requirement of home confinement. . . . But
Robinson failed to post bond by 4 p.m. Monday -- and also did
not report to jail in lieu of that. There was a warrant issued
for his arrest, and police apprehended him at his Lee Street
home.
WISCONSIN
Lawyer convicted in Bielinski builders fraud reinstated to bar
By
Bruce Vielmetti of the Milwaukee Journal Sentinel
03-09-10 --
Milwaukee attorney Michael Gral, who served two years in prison
for his role in defrauding a major area home builder and client,
has won back his license to practice law in Wisconsin. . . . The
state Supreme Court on Tuesday followed a referee's
recommendation and
reinstated Gral's license, on the condition he not
represent any clients with whom he also is involved in real
estate deals for three years. . . . The reinstatement follows a
three-year suspension imposed in 2005, when Gral, 49, was
convicted in federal court. Gral served a prison term and then
federal probation, which ended last month. He petitioned to
rejoin the state bar in March 2009, and a hearing was held
before a referee in August. . . . At that hearing, a partner
from Gral's old firm, Michael Best & Friedrich, opposed Gral's
reinstatement. Stephen Means, now an attorney with the state
Department of Justice, called Gral's crime the "result of
conscious, deliberate acts over a period of time that were
motivated by personal greed. This man should never practice law
again."
March 6 -- March 8,
2010
GENERAL
Big Law Defends Guantanamo Lawyers
Mike
Scarcella and David Ingram, The National Law Journal
03-08-10 --
The intensifying flap over Justice Department lawyers who have
advocated for Guantanamo Bay detainees is spilling over to Big
Law, where some firm leaders are fighting back against the
criticism. . . . The Justice Department in the past couple of
weeks has come under fire from a conservative group and
Republican lawmakers for hiring lawyers who represented
Guantanamo Bay detainees while in private practice. The
controversy ramped up after the Justice Department refused to
name the lawyers. Then the conservative group
Keep America Safe posted
a YouTube video questioning the allegiance of the DOJ lawyers
and giving the attorneys a name -- "The Al Qaeda Seven."
. . . The political talk shows are buzzing about ethics and
loyalty. Lawyers are writing
opinion pieces. One Virginia congressman fired off a
letter to Attorney General Eric Holder Jr. that
compared Gitmo lawyers to attorneys for the Mafia.
And in the middle of it all are a group of former private
practitioners in Big Law at firms that include Wilmer Cutler
Pickering Hale and Dorr, Morrison & Foerster, O'Melveny & Myers
and Sidley Austin.
Google’s Top Lawyer Makes More than $2M in Bonus and
Pay
By
Debra Cassens Weiss, ABA Journal
03-08-10 --
Google’s chief legal officer is getting a $1.73 million
discretionary bonus this year, on top of a base salary of
$500,000. . . . The compensation is outlined in a
filing with the Securities and Exchange Commission,
according to
PaidContent.org and the
San Jose Mercury News. . . .Proxy materials released
last year showed Drummond earned a $450,000 salary in
2008 and made a $1.38 million bonus. He also had $3.29 million
in stock and option awards, according to the proxy materials.
|
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CALIFORNIA
High cost of McCourts' divorce: $19 million in fees
Dodgers' case could be one of the
most expensive in California history. Even other high-profile
divorce attorneys are surprised.
By
Bill Shaikin, Los Angeles Times
03-05-10 --
Frank and Jamie McCourt's divorce could become one of the
costliest splits in California history, with attorneys and
accountants commanding as much as $19 million in fees — more
than the Dodgers will spend on their starting infield this
season. . . . Frank McCourt has estimated his "divorce-related
expenses" at $5 million to $10 million, according to court
filings. Jamie McCourt has estimated her expenses at $9 million
— and asked that her estranged husband be ordered to pay them. .
. . Although records of salaries and statistics are omnipresent
in baseball, specific information about divorce costs is largely
unavailable. The Times consulted with several family law
experts, none of whom could recall a divorce costing $19
million. . . . "I'm pretty sure there's not been any litigation
in a California divorce where they've spent so much on
attorneys' fees," said Lynn Soodik, a Santa Monica family law
attorney who represented Meg Ryan in her divorce from Dennis
Quaid.
CONNECTICUT
Justices Throw Twist Into Jury Polling Rule
Judge’s decision to block
post-verdict query called ‘harmless error’
By
Christian Nolan, Connecticut Law Tribune
03-08-10 --
It only takes a minute or two. After the verdict is announced,
each juror is asked one by one if they agree with the decision.
. . . It’s the one last ray of hope for the defeated side’s
lawyer, a last-ditch effort to learn whether there was some
coercion in the jury room or dissension in the ranks that could
lead to a new trial. . . . Under Practice Book rules,
Connecticut judges are supposed to allow jurors to be polled in
both . . . criminal and civil cases. But is it a serious breach
of a litigant’s rights if a judge refuses to let the polling
take place? That’s a question that the state Supreme Court
weighed in a recent case stemming from a civil suit in which
prison guards were accused of using excessive – and lethal –
force while subduing an unruly inmate. . . . In a split decision
to be officially released this week, justices ruled that
Superior Court Judge John J. Langenbach erred in not allowing
the jurors to be polled. But a majority ultimately determined it
was a “harmless error” and upheld the defense verdict in favor
of the correction officers. . . . Even lawyers not involved in
the case took note of the decision. “I was perplexed by it,”
said Jim Nugent, who heads the Connecticut Bar Association’s
litigation committee. . . . That’s because in 2000, the Supreme
Court ruled in a criminal case,
State v. Pare, that a judge’s refusal to poll a
jury is a mistake that is not subject to harmless error
analysis, but instead must lead to reversal of a conviction and
a new trial.
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ILLINOIS
Attorney bilked Calumet Park of more than $1 million, state
alleges
Former Greenberg Traurig partner
grew up in victimized village
By Matthew Walberg and Joel
Hood, Chicago Tribune reporters
03-05-10 --
Lawyer Mark J. McCombs was a native of south suburban Calumet
Park who had made good, rising to partner at a major law firm
and having a street named for him in the tiny village. . . . The
municipal law expert did legal work for years for his hometown
and was so trusted under the administration of Mayor Buster
Porch that Porch routinely signed off on stacks of bills handed
him by McCombs with little explanation, authorities said. The
practice continued under current Mayor Joseph DuPar. . . . On
Friday Cook County authorities said McCombs, 50, had been
arrested at his condominium on Chicago's Near West Side on a
charge he stole more than $1 million in tax increment finance
funds by billing the village for work he never performed. . . .
McCombs did not pocket the money, Assistant State's Attorney
John Mahoney alleged in court, but it enhanced his
prestige, billable hours and opportunities for more pay at
Greenberg Traurig, the downtown law firm where McCombs worked.
IOWA
Floyd County attorney battles ethics complaints
By
Dennis Magee, Waterloo Cedar Falls Courier
03-07-10 --
Since becoming Floyd County attorney, Jesse Marzen has worked
under a cloud: His law license could be suspended or revoked
because of an ethics complaint pending before the Iowa Supreme
Court. . . . According to court records, the review has its
roots in allegations Marzen exchanged sex for legal services
while representing Victoria Nehls. She was one of Marzen's
clients when he worked as a private attorney in Charles City. .
. . "When it comes to that, I'm not making any comments about
anything. There are rules of confidentiality involved in those
processes, and I'm just not going to comment about anything on
that subject," Marzen said during an interview in October. . . .
During a five-month review of public records and through dozens
of interviews, an investigation by The Courier has looked into
the ethics complaint and also found other issues related to
Marzen's performance as county attorney.
MASSACHUSETTS
Harvard Law Prof Nesson on the Hook for Motion Cost in
Downloading Trial
By
Debra Cassens Weiss, ABA Journal
03-08-10 --
Some pro bono litigation could prove costly for Harvard law
professor Charles Nesson. . . . Nesson led the defense for
graduate student Joel Tenenbaum, who was
ordered to pay $675,000 for unlawfully downloading 30
songs on the Internet. Now Nesson may be on a hook for some of
the record companies’ legal fees. . . . Last week, U.S. District
Judge Nancy Gertner ordered Tenenbaum and Nesson to pick up the
costs of a motion to compel filed by the plaintiffs, according
to the
Copyrights & Campaigns blog. The motion had sought
evidence about the posting of seven songs to a public website;
Gertner granted the request in June. . . . According to Ars
Technica, the motion was filed “after the defense team
inexplicably posted the very songs at issue in the case to the
Internet, and Nesson posted a public link on his blog for anyone
to download them.”
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NEW
JERSEY
Shareholders Cry Conflict of Counsel in Class Action
Over Merck Merger
Charles Toutant, New Jersey Law Journal
03-08-10 --
A law firm faces conflict allegations over its projected $3.5
million fee for representing shareholders who obtained no
monetary or equitable relief in a class action settlement over
the merger of drug giants Merck and Schering-Plough. . . . Class
member Allan Marain, a lawyer in New Brunswick, N.J., filed
papers Wednesday opposing the settlement, which a federal judge
has tentatively approved, and seeking sanctions against the
firm,
Carella, Byrne, Cecchi, Olstein, Brody & Agnello in
Roseland, N.J. . . . The parties settled the claims in In re
Schering-Plough/Merck Merger Litigation, 2:09-cv-1099, last
July, and Carella Byrne and Merck reached the agreement for the
$3.5 million fee in talks with a court-appointed mediator last
November. A final approval hearing is set for March 24. . . .
Metuchen, N.J., solo Mark Silber, who represents Marain, argues
that certifying the class serves no purpose except to make
Carella Byrne eligible for attorney fees. Because the class
members are now holders of Merck stock, they would benefit more
if the class were not certified, because then Carella Byrne
would not be eligible to apply for fees, says Silber. . . .
"They didn't accomplish anything at all. They go from
representing a class to achieving nothing and wanting their
clients to pay them three-and-a-half million dollars. They
switched their allegiance," says Silber.
NEW YORK
Firm Sanctioned for 'Perfect Storm' of Improper Practices in
Debt Collection
Vesselin Mitev, New York Law Journal
03-08-10 --
A Manhattan law firm committed a "veritable 'perfect storm' of
mistakes, errors, misdeeds and improper litigation practices" in
trying to collect a debt from a Long Island, N.Y., woman, a New
York state judge has ruled in ordering sanctions against the
firm. . . .
Eltman, Eltman & Cooper was ordered by District Court
Judge Michael A. Ciaffa in Nassau County to pay $14,800 for a
series of state ethics rules violations, including "disobeying"
a court order dismissing the case by making "harassing" phone
calls to the defendant. . . . "'High volume' debt collection law
practices are subject to the same ethical rules as apply to
lawyers handling any other civil litigation matter," the judge
observed in
Erin Services v. Bohnet, 19984/04. He directed
the firm to pay $10,000 to the
Lawyers' Fund for Client Protection and $4,800 to
defendant Patricia Bohnet of Lynbrook, N.Y. The firm was given
30 days in which to make payments. . . . In August 2004, a
default judgment was entered against Bohnet on a $3,158 debt she
allegedly owed to an entity called First USA. In July 2009,
Bohnet moved pro se to vacate the judgment on the grounds that
she knew nothing about the action as she was never properly
served. She said she had not lived at the listed address in more
than 10 years.
Already Facing Larceny Charge, Lawyer Is Now Accused
of Attempted Bribery
Vesselin Mitev, New York Law Journal
03-08-10 --
A Long Island, N.Y., attorney previously charged with stealing
$700,000 from real estate investors is now facing an attempted
bribery charge after allegedly trying to pay off a Nassau County
clerk to speed up his request for information on a property he
was trying to close on. According to prosecutors, Frederic
Powell, 54, was told by a Hempstead building's department clerk
that his request would normally take five days to process. . . .
Powell, of East Meadow, then told the clerk he needed the
information that day and placed a $100 bill on the counter, and
asked "if the process could be sped up." When he was informed
that it could not, he placed another $100 bill on the counter,
which was again rejected. Before leaving, Powell allegedly
crumpled up a $50 bill and threw it at the clerk, according to a
statement by Nassau County District Attorney Kathleen Rice.
DeWitt lawyer Bonnie Strunk admits tax fraud
By
Jim O'Hara / The Post-Standard
03-08-10 --
A well-known local lawyer today admitted to failing to file a
tax return last year in a plea deal to resolve unrelated grand
larceny and identity theft charges. . . . Bonnie Strunk, 62, of
Kinne Road, DeWitt, pleaded guilty before state Supreme Court
Justice John Brunetti to a felony count of fourth-degree
criminal tax fraud. . . As
a result of that plea, the District Attorney's Office agreed not
to prosecute Strunk on
charges she stole the identity of
her longtime former law partner's husband to set up a credit
card account for her personal use.
. . . Brunetti promised
Strunk a sentence of a three-year conditional discharge.
Sentencing was set for May 3. . . . While the deal allows Strunk
to avoid any jail sentence, it will cost her her license to
practice law. A felony conviction results in automatic
disbarment by the New York State Supreme Court Appellate
Division in Rochester.
OHIO
Defendants tried without lawyers in Huber Heights court win
appeals
By
Lou Grieco, Dayton Daily News Staff Writer
03-08-10 --
In late 2008, Nicole Davis called the Montgomery County Public
Defender’s Office to complain. She wanted to know why her
attorney hadn’t come to her hearing. . . . “It turned out she
didn’t have a lawyer to be there,” Public Defender Glen Dewar
said. . . . Davis’ obstructing official business case, in
Montgomery County District Court Area Two in Huber Heights, was
not an isolated case. . . . Dewar’s office soon found several
cases in which defendants facing possible jail time were being
run through the system without attorneys. . . . The six cases
are quite similar — all misdemeanors, all before Montgomery
County District Court Judge James A. Hensley Jr. . . . And no
attorneys were present for the defendants. . . . “This is part
of our duty: to defend the Constitution,” said Dewar. “I
consider myself the guarantor of the Sixth Amendment.” . . . The
Ohio 2nd District Court of Appeals has reversed six of Hensley’s
cases on the grounds that the defendants did not have attorneys
and did not waive that right.
PENNSYLVANIA
Erie lawyer to be sentenced in fraud case
$200,000 was stolen for 'personal
and business' expenses
By
Lisa Thompson, GoErie.com
03-08-10 --
Disbarred Erie lawyer J. Gregory Moore goes before a federal
judge today to be sentenced for stealing about $200,000 from
estates in his care. . . . He'll present a stack of letters from
community leaders who believe health problems led Moore to
mismanage his accounts. They want leniency for their friend. . .
. Moore's lawyer, William Weichler, argues that Moore -- a
Vietnam War veteran, Sunday school teacher and community
volunteer -- deserves probation. . . . But in a forceful
document filed Friday in U.S. District Court, the U.S.
Attorney's Office said Moore's "own canceled checks" establish
no case for special treatment. . . . Authorities have long
remained silent on what "personal and business" expenses Moore
covered with funds stolen from his clients.
