Final Defendant to Plead Guilty in Milberg Prosecution
The final defendant in the prosecution against the Milberg law firm has agreed to plead guilty to “an improbable tax-related felony,” in the words of the Daily Journal.
California environmental lawyer Paul Selzer had been accused of being an intermediary for a kickback paid by Milberg to Seymour Lazar, a client of Selzer’s who served as a lead plaintiff in Milberg securities cases.
Under the plea agreement, Selzer acknowledges Milberg sent $49,000 to Selzer’s firm in 2000, which he applied to Lazar’s legal bills, the Daily Journal reports. Prosecutors say Selzer should have told the Internal Revenue Service that the true beneficiary of the payment was Lazar.
However, prosecutors admit that the omission resulted in no tax loss to the government and say Selzer believed the payments were legitimate referral fees, the story says. Prosecutors are recommending a fine of $250,000 and a sentence of one year’s probation served as home detention.
As part of a plea deal with Milberg, the government agreed in June to drop charges accusing the firm of paying kickbacks to lead plaintiffs in exchange for a $75 million payment.
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