Ex partners of Prominent Class-action Law Firm Sentenced to Federal Prison

Steven Schulman and David Bershad, two former partners of the law firm formerly known as Milberg Weiss, were sentenced to six months in prison each for their role in an illegal class-action lawsuit scheme. It is illegal to pay lead plaintiffs in class-action lawsuits brought by the firm. Under the scheme, Milberg Weiss attorneys agreed to pay class-action lead plaintiffs a portion of the attorneys’ fees if Milberg Weiss won the case.

Bernshad pleaded guilty to 18 USC § 1503, conspiring to obstruct justice, and 18 USC § 1623, making false statements under oath in July 2007.

Schulman pleaded guilty to 18 USC § 1962, racketeering conspiracy, in October 2007. Both men agreed to forfeit profits derived from the cases and are ordered each to pay a $250,000 fine. Prosecutors agreed that information obtained from Bernshad and Schulman as part of their plea agreement was instrumental in prosecuting firm senior partner and co-founder Melvyn Weiss for his role in the scheme.

Weiss pleaded guilty to one count of racketeering conspiracy, and was sentenced to 30 months in prison. Weiss was required to forfeit more than $10 million derived in proceeds due to the fraudulent scheme.

If you have been arrested or are being investigated by the federal authorities for fraud, obstruction of justice, making a false statement under oath, racketeering, or any other federal white collar crime, you need the assistance of a competent federal criminal defense attorney working to ensure your rights are protected and that you receive your constitutional due process. The federal criminal defense lawyers at Houston & Blanco will fight to get your charges dismissed or dropped. Call TODAY! Do NOT WAIT! Call the Orange County federal criminal defense attorneys of Houston & Blanco at 714.841.3921 or email at info@HBLawyers.net.