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Melvyn Weiss gets 30-month sentence

Lawyer in kickback scheme also must forfeit millions in fees.

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June 03, 2008|Tiffany Hsu and Thomas S. Mulligan, Times Staff Writers

Melvyn Weiss, once one of the country's most prominent and wealthy lawyers, will begin serving a 30-month prison term late this summer.

A federal judge in Los Angeles sentenced Weiss on Monday for his role in a kickback scheme that prosecutors said generated millions of dollars in fees for the New York law firm he co-founded.


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U.S. District Judge John F. Walter also ordered Weiss to pay $250,000 in fines and forfeit $9.75 million in fees he earned while with the firm.

Reading from a prepared statement, Weiss apologized for his "wrongful conduct." The 72-year-old, who was indicted last September and agreed to a plea deal in March, was disbarred this year.

"I promise you my contrition is profound and genuine," he said. "My punishment has already been great."

Prosecutors said Weiss' firm made roughly $250 million over more than two decades by filing class-action lawsuits on behalf of plaintiffs who were paid a total of $11.3 million for their involvement. Companies targeted included AT&T, Xerox Corp. and United Airlines.

Indicted on charges of conspiracy, racketeering, obstruction of justice and making false statements, Weiss would have faced a maximum of 40 years in prison had he been convicted on all the counts. He pleaded guilty to a single racketeering charge as part of a deal that called for a sentence of 18 to 33 months.

Weiss' attorney, Benjamin Brafman, asked the judge to "temper justice with mercy" and consider Weiss' "breathtaking" 50-year record of pro bono and charity work. "He's a good man, and a good man can do a bad thing," Brafman said.

A 125-page memorandum written by Weiss' legal team and 275 letters from supporters detailed Weiss' philanthropic history, including $6.25 billion in settlements he helped win for Holocaust victims. Judge Walter and Assistant U.S. Atty. Douglas Axel said the support for Weiss appeared to be unprecedented.

Along with former partner William S. Lerach of San Diego -- who also pleaded guilty in the case and is serving a two-year term in the Federal Correctional Institution in Lompoc, Calif. -- Weiss helped pioneer the development of securities class-action litigation.

Axel sought in court to differentiate the two men. While Lerach distanced himself from the firm after the federal investigation began in 2001, Axel said, Weiss demonstrated "criminal arrogance" by continuing to negotiate kickbacks and hiding evidence.

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