LOS ANGELES (AP) -- A Los Angeles attorney admitted he illegally accepted money from a top class-action law firm that was indicted last week on charges of secretly paying more than $11 million in kickbacks to get people to take part in shareholder lawsuits.
Richard R. Purtich, 53, agreed Monday to plead guilty to a felony tax offense in connection with his participation in a scheme prosecutors say involved New York-based Milberg Weiss, Bershad & Schulman, and top partners David J. Bershad and Steven G. Schulman.
Federal prosecutors say that the secret kickback arrangement often allowed the firm to be among the first to file a lawsuit on behalf of shareholders. The indictment alleges that Milberg Weiss's lawsuits against major corporations generated hundreds of millions of dollars in attorneys' fees. The firm denies any wrongdoing.
In court papers filed Monday, prosecutors alleged that Purtich received more than $2.5 million from Milberg Weiss for the financial benefit of Steven G. Cooperman, a former client of his who served as a plaintiff in several class action lawsuits.
Cooperman, 64, was convicted of insurance fraud and other crimes in 1999 in an unrelated case and has been cooperating with the government's ongoing investigation into the secret kickbacks scheme, the U.S. attorney's office said.
This shit is getting ugly. Details here from the AP via the New York Times.