Criminal Justice

Referral fees from law firms lead to conviction of former New York Assembly speaker

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Sheldon Silver

Photo of Sheldon Silver from the New York State Assembly

Former New York Assembly Speaker Sheldon Silver was convicted on corruption charges on Monday for taking $4 million in referral fees from law firms in exchange for favors.

Silver, 71, was convicted on federal charges of theft of honest services, extortion and money laundering, report the New York Law Journal (sub. req.) and the New York Times. Jurors deliberated for three partial days following a five-week trial.

Silver, a Manhattan Democrat, told reporters after the verdict that he was disappointed, according to the New York Times account. “Ultimately I believe after we file the legal challenges we will have a different result,” he said.

Prosecutors presented evidence that Silver received $3 million in referral fees from Weitz & Luxenberg for asbestos cases referred by a cancer researcher, who received $500,000 in research grants in return. Prosecutors also alleged that Silver received $700,000 in referral fees from Goldberg & Iryami for tax appeal work on behalf of two developers, who benefited when Silver supported rent legislation.

Two jurors had sought to be dismissed, without success. One juror sent a note to the judge saying she was “feeling pressured, stressed out … told that I’m not using my common sense, my heart is pounding and my head feels weird.” A second juror said he had a conflict of interest because he learned that the owner of the cab he drove was a good friend of Silver’s.

Related coverage:

ABAJournal.com: “Jury instructions critical in trial of former top lawmaker over $4M in legal referral fees”

ABAJournal.com: “Trial begins for former NY Assembly leader accused of misusing office to earn legal fees”

ABAJournal.com: “Quid pro quo? Doctor testifies about ‘relationship’ with lawmaker who got millions in referral fees”

Story updated at 7:45 a.m. in response to commenter; Silver is a Democrat.

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