Former Milberg Weiss & Bershad partner Steven Schulman has asked a federal court to dismiss the fraud charges against him, which are related to the government’s larger case against the class-action law firm.
The firm, along with Schulman and another ex-partner, David Bershad, were indicted a year ago on charges of paying illegal kickbacks to clients. Schulman and Bershad pleaded not guilty to the conspiracy, mail fraud, money laundering, obstruction of justice and tax violation charges last summer, and the firm has also vehemently proclaimed its innocence.
According to the Los Angeles Times, Schulman claims that no one involved in the shareholder lawsuits actually suffered harm -- a point similar to one the judge handling the case has already raised.
Prosecutors say that the defendants paid out millions in legal fees over the course of 25 years to clients who agreed to act as lead plaintiffs in class-action suits. The firm hid those payments by distributing them in cash, or paying them out through intermediary law firms, according to court documents.
Schulman's motion is set for a June 4 hearing.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access