Indicted Lawyer Weiss Seeks Trial in New York
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LOS ANGELES — Melvyn Weiss, the co-founder of a prestigious New York law firm, and two codefendants pleaded not guilty yesterday to federal charges related to a major class-action kickback scheme, and Mr. Weiss’s lawyer said he planned to file a motion to have the trial moved to New York from California.
Mr. Weiss entered his pleas through his lawyer to two counts of conspiracy and one count each of obstruction of justice and making false statements in relation to the documents that were the subject of a grand jury subpoena.
Prosecutors said the firm previously known as Milberg Weiss Bershad & Schulman made an estimated $250 million by filing class-action lawsuits against some of America’s largest corporations. Kickbacks were allegedly paid to people who agreed to be plaintiffs.
The firm also has been charged in the case and has pleaded not guilty yesterday to one count each of conspiracy, mail fraud, money laundering and obstruction of justice in the revised indictment.
The seven-year investigation has resulted in guilty pleas by several former partners and lawyers at the firm.
If convicted of all four counts, Mr. Weiss faces a maximum sentence of 40 years in prison. He remained free after posting a $1.5 million bond on Friday.
Mr. Weiss, 72, said little during yesterday’s hearing before District Magistrate Charles Eick, only confirming his name and declining to have his indictment read to him in court.
During a separate court hearing later yesterday, attorney Benjamin Brafman, who represents Mr. Weiss, said he will file a motion asking a federal judge to move his client’s trial to New York because “there is no connection” between Mr. Weiss and California.
“All the government’s witnesses, from what I know, are based in New York,” Mr. Brafman said. He also intends to ask a judge to grant his client a separate trial from the firm, which is now known as Milberg Weiss.
District Judge John Walter continued the trial from January to August 12.