Investor Pleads Guilty in Milberg Probe
Posted Oct 19, 2007 9:59 AM CDT
By Debra Cassens Weiss
An 80-year-old Palm Springs investor who spent more than 50 years practicing law has pleaded guilty to charges he was paid about $2.6 million to be a lead plaintiff in securities class actions.
Prosecutors are recommending home detention for the defendant, Seymour Lazar, because of his declining health and advancing age, the Associated Press reports. He pleaded guilty as part of the probe into Milberg Weiss, which has been accused of earning $250 million in fees while paying kickbacks to clients to serve as lead plaintiffs.
Lazar pleaded guilty to obstruction of justice, subscribing to a false tax return and making a false declaration. He agreed to forfeit $1.5 million and pay a $600,000 fine.