The law firm now known as Milberg LLP reached a non-prosecution agreement on Monday with the DOJ which settles the criminal charges against the firm. The former Milberg Weiss Bershad & Schulman LLP was indicted in 2006 on counts including conspiracy, racketeering, mail fraud, money laundering and filing false tax returns. Milberg admitted wrongdoing by its former principals Melvyn Weiss, William Lerach, David Bershad and Steven Schulman involving illegal kickbacks paid to class action plaintiffs in 165 cases over 25 years and agreed to pay $75 million in fines. The government said it believed that no current partners engaged in or knew about the illegal scheme.
Milberg also admitted llegally paying class action expert witness John Torkelsen on a contingency basis and paying kickbacks to several stockbrokers who referred clients to serve as plaintiffs. The firm also agreed to compliance monitoring for two years (NY Law Journal, DOJ via LawFuel).
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