Bringing to a close another chapter in the Scruggs scandals. [WSJ Law Blog]
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A major development in the still-developing Scruggs judicial influence scandals. Coverage: Patsy Brumfield/Northeast Mississippi Daily Journal, Tom Freeland and more, guestblogger S. Todd Brown (Buffalo lawprof) at Point of Law.
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Ed Peters, the former Hinds County (Jackson) prosecutor who’s been a central figure in the still up-in-the-air Peters-DeLaughter branch of the Scruggs scandals, has turned in his law license (via) amid much Mississippi speculation that he is cooperating with prosecutors and that other developments are imminent. NMC at Folo tries to sort things out. And, just in time to be helpful, Alan Lange of YallPolitics has an article summarizing the scandal as it’s developed thus far.
The WSJ and Mississippi’s WLOX have the news up on Dickie Scruggs’ plea of guilty to conspiracy in the attempted bribe of Judge Henry Lackey. Earlier today, the Journal had an illuminating page-one feature on Dickie Scruggs’s history of fee disputes with other lawyers. YallPolitics‘ server seems to be down at the moment from traffic, but is back up now; in an email alert, YP’s Alan Lange said the surprise plea came three days before the deadline for Scruggs to plead before his approaching trial. Our past coverage is here, or check our Scandals page.
Update 12:18 EST: AP coverage is here (via Rossmiller). Sid Backstrom also pleaded and, per Folo rapid updates, is cooperating with prosecutors. No deal for Zach Scruggs yet. Also per Folo, Scruggs pleaded to conspiracy in the Lackey bribe attempt but did not resolve possible charges in the DeLaughter case, per the government side.
12:44: Now Folo’s server has crashed. Temporary replacement site up here.
1:16: Per Patsy Brumfield at the NEMDJ:
…The government recommended a sentence of five years in prison for Scruggs and 2 1/2 years for Backstrom. They also will pay a maximum fine of $250,000 each and a court fee. …
Before Biggers accepted their pleas, Scruggs and Backstrom admitted in open court that they had done what the government said they had done in Count One – they had conspired to bribe Circuit Judge Henry Lackey of Calhoun City for a favorable order in a Katrina-related legal fees case….
Dickie Scruggs, arguably the most famous plaintiffs’ attorney in the U.S., looked pale and thin but carried himself with a bit more control than his younger colleague at The Scruggs Law Firm, headquartered on the storied Square in Oxford.
The 61-year-old Ole Miss Law School grad and legal giant-killer, as well as Backstrom, likely will voluntarily surrender their law licenses, as has co-defendant Timothy Balducci of New Albany, who pleaded guilty in December although he was wired and cooperating with the government at least a month earlier.
“Do you fully understand what is happening here today,” Biggers asked him.
“Yes, I do,” Scruggs responded.
Questioned about whether he had discussed his decision to plead guilty with his attorney, Scruggs responded, “With my attorney, my wife and my family.”
1:25 p.m.: Rossmiller has an update from a correspondent at the scene. And Folo is up at a temporary site until its server gets back online. Excerpts from Folo’s on-the-scene report:
…* Richard Scruggs is pleading to conspiracy to bribe a state court judge, count 1 of the indictment, with other counts to be dismissed. This was an open plea, that is, no recommended sentence.
* The government expects that he will get the full five year sentence on that count. …
* There was no mention of cooperation by Scruggs. …
* There was an interesting and unusual disagreement with the government’s statement of facts in the plea colloquy. The government stated in its facts for both Backstrom and Scruggs that a conspiracy began in March to corruptly influence the state court judge, and Scruggs spoke to say that he had agreed to earwig the judge but not corruptly influence him in March, and that he later agreed to join a conspiracy to corruptly influence the judge. Sid Backstrom took a similar stance….
[See also WSJ law blog and later NMC post, as well as WikiScruggs on "earwigging" as a Mississippi tradition.]
1:56: Welcome Glenn Reynolds/Instapundit and David Rossmiller/Insurance Coverage Blog readers.
3:18: The Jackson Clarion-Ledger reports: “As part of the plea deal, federal prosecutors agreed to defer prosecution of Scruggs’ son, Zach Scruggs, who agreed to give up his license to practice law.” [N.B.: NMC @ Folo has a very different take, and other sites are also questioning the C-L's reporting on this point.] Folo at its temporary bivouac has PDFs of the Scruggs and Backstrom pleas and underlying facts, as does David Rossmiller. ABA Journal coverage includes the text of a forthcoming article by Terry Carter on the affair, written pre-plea. Other reactions: Above the Law (”has Scruggs employed bribery as a tactic in other matters — e.g., the tobacco cases that made him famous …?”), Beck and Herrmann (”What a week. First Spitzer, and now Scruggs. What goes around, comes around.”), TalkLeft, Michelle Malkin, NAM Shop Floor (”So what are the odds that this was Dickie Scruggs’ first and only crime during his decades-long career as a trial lawyer?”).
6:27: Roger Parloff wonders whether Scruggs will cooperate, and whether the statute of limitations might have run already on tobacco skullduggery. NMC @ Folo wonders what prosecutors will make of a slew of fresh documents from the Scruggs Law Firm, or whether perhaps such documents have already had an effect. Not so surprising a plea, says Jane Genova at Law and More, but rather “widely expected“.
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Some developments of the past ten days or so:
* In major blow to defense, Judge Biggers denies motions to suppress wiretap evidence and evidence of similar bad acts [Rossmiller]
* Balducci says he and Patterson got $500K from Scruggs to influence AG Hood to drop indictment of State Farm, motive being to advance civil settlement [Folo]
* WSJ gets into the act with some highlights of wiretap transcripts [edit page; earlier here]
* Sen. Trent Lott says he’s a witness, not a target, of federal investigation [Anita Lee, Biloxi Sun-Herald]
* Scruggs off the hook on Alabama criminal contempt charge [WSJ law blog, Rossmiller, Folo]
* “Mr. Blake has served for many years as a conduit and a layer of separation, if you will, between Mr. Scruggs and other people on sensitive issues.” (Balducci transcript highlights, Folo; more)
* In effort to get Zack Scruggs indictment dismissed, his lawyers dwell on switch from “y’all” to “you” as implying shift in persons addressed from plural to singular [Folo first, second; Rossmiller first, second; on a "sweet potatoes" point, NMC @ Folo and sequel; also]
* DeLaughter/Peters branch of scandal reaches deep into Jackson legal community [Adam Lynch, Jackson Free Press]
* Article in new American Lawyer notes that Scruggs’s ambitious suits have lately hit a big losing streak, notably those against HMOs, nonprofit hospitals and Lehman Brothers [Susan Beck]. And Lotus catches an interestingly lawyerly wording on John Keker’s part [Folo]
* I’m quoted and this site is discussed in an article on blog coverage of the case; my lack of clarity as an interviewee probably accounts for Scruggs being said to have addressed audiences at the Manhattan Institute “a few” times, when if memory serves the correct reference is “twice”. [Patsy Brumfield, Northeast Mississippi Daily Journal (Tupelo) @ Folo]
* For more background see our Scandals page; also YallPolitics.
Alan Lange and commenters are jumping in to excerpt some of the more damning excerpts (YallPolitics Feb. 19; more). And in the department of curious wordings, from the Jackson Clarion Ledger: “Circuit Judge Bobby DeLaughter has told federal authorities he became aware in 2006 that some people were trying to improperly influence him to rule in favor of lawyer Dickie Scruggs in a Hinds County legal-fees dispute. DeLaughter told authorities he didn’t know whether he was influenced [emphasis added] but says he’s followed the law in all his rulings.” (Jerry Mitchell, “Judge: Efforts to sway made”, Feb. 24).
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Big news day in the Scruggs scandals: a judge has turned down defense motions to throw out the charges and to suppress the evidence, a hearing on those motions has showcased the testimony of government informant Tim Balducci, and the government in responding to the motions has released extensive and often quite damning transcripts of the wiretap conversations among the principals. Folo as usual provides the most in-depth coverage, with posts on the judge’s rulings here and here, on the hearing and Balducci’s testimony here and in numerous preceding posts, and on the wiretap transcripts here and in numerous preceding posts. David Rossmiller is on the judge’s ruling here, and on the hearing and transcripts here. More: Patsy Brumfield, NEMDJ, was at the courthouse.
Picking through the rich contents of the transcripts and Balducci’s testimony is going to keep Scruggsians busy for a good long time. In the meanwhile, some odds and ends:
* Want to review all the major events of the central alleged bribery case, skillfully narrated in chronological sequence? Of course you do. Folo’s NMC has it in six parts beginning here and ending here (follow links to find those in between).
* John Grisham’s “Too Dumb for Dickie” theory encounters some serious strain [Rossmiller and again]
* Mississippi legislature won’t give AG Jim Hood authority to wiretap his enemies suspected white-collar criminals. Gee, wonder why that might be? [WLBT via Lange] Plus: description of Hood as a Pez dispenser coughing out multi-million-dollar cases for his chums [Rossmiller]
* More unpretty details surface on Scruggs’s (and other lawyers) use of informants in Katrina litigation [Rossmiller] and tobacco [Lange]
* More Hood: prosecuting the accused judge-bribers “would be like prosecuting a relative” [Salter, Clarion-Ledger, Rossmiller, Folo]. Give back tainted money? “That’s up to DAGA [Democratic Attorneys General Association]” [Lange]
* Former Louisiana attorney general Richard Ieyoub gets a mention, as does Sen. Trent Lott [Folo, same] Update: feds investigating what Sen. Lott knew [WSJ]
* Small world, Mississippi: member of arbitration panel that awarded Scruggs huge fees was later hired by the tort potentate for legal work [Lange]
* Blogosphere has been a major source for breaking news on the scandal [LegalNewsLine]
* Liberal columnist Bill Minor recalls when a certain Sen. McCain let Dickie Scruggs and Mike Moore run their tobacco lobbying campaign out of his Hill office [NEMDJ via Folo; more at PBS "Frontline" and NY Times]
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* Pertinacious Scruggs effort to evade deposition by State Farm attorneys results in “testosterone fiesta” of swaggering counsel (Folo; sequel; YallPolitics; Rossmiller); (P.S. Yes, Ted and I independently noticed and posted on this just minutes apart.)
* Remember when Mississippi Attorney General Jim Hood declared his political patron Scruggs a “confidential informant”, thus throwing a most useful cloak of protection over him in his battle against contempt charges? It happens that Scruggs was at almost exactly the same moment donating large sums to the Democratic Attorneys General Association which seem to have passed through like a dose of salts to emerge at the other end as donations to Hood (YallPolitics; earlier on DAGA)
* Attorney Ed Peters, tagged with a pivotal role in Langston-DeLaughter branch of scandal, was formerly high-profile local D.A.; his prosecutorial vendetta against an attorney named J. Keith Shelton comes in for scrutiny in a new series by Folo proprietor Lotus [#5 in series; posts tagged Peters; see also YallPolitics]
* Folo co-blogger NMC, looking into Luckey and Wilson fee disputes (earlier here, here, here), is rattled by the prevalence of hearings-without-notice, ex parte judicial contacts, and other Gothic proceduralisms [Folo];
* Implications or non-implications for civil proceedings of Scruggs’s taking the Fifth [White Collar Crime Prof Blog]
* Adam Cohen of the NYT and Scott Horton of Harper’s claim defendants in precursor Minor-Teel-Whitfield scandal were railroaded on vague charges over not-really-illegal stuff; read pp. 6-9 of the indictment and see whether you agree (YallPolitics);
* For Mississippi, it’s already the most far-reaching corruption scandal in a century, aside from the question of how much bigger it might get [Jackson Clarion-Ledger]
Earlier Scruggs coverage on our scandals page.
* “The FBI is expanding its probe into Mississippi’s judicial bribery scandal to examine other cases involving Hinds County Circuit Judge Bobby DeLaughter and his former boss, longtime District Attorney Ed Peters.” The pair surfaced in the Scruggs annals not long ago when Joey Langston pleaded guilty to involvement in a 2006 scheme to get DeLaughter to rule in Scruggs’s favor in a fee lawsuit, which allegedly included the funneling of $1 million of Scruggs’s money to Peters, who was viewed as close to the judge. (Jerry Mitchell, Jackson Clarion Ledger, Jan. 28). Rumors have been rife that Peters, DeLaughter or both may be cooperating with authorities, which might strengthen prosecutors’ hand in securing further evidence of the scheme.
* Perhaps relatedly, to quote Folo’s contributor NMC, “In the case against Dickie Scruggs over allegations of bribing Judge Lackey, the prosecution has filed a Notice of Intent to Introduce ’similar acts evidence pursuant to Rule 404(b), Fed. R. Evid., at the trial’”. See Patsy R. Brumfield, “Prosecutors ready to say bribery attempts aren’t anything new”, Northeast Mississippi Daily Journal, Jan. 28.
* With what might seem like startlingly bad timing, Scruggs chum/novelist (and campaign donation co-bundler, if that’s the right term) John Grisham is just out with a new fiction entitled The Appeal, whose thesis, to judge by Janet Maslin’s oddly favorable review in the Times, is that the real problem with the Mississippi judicial system is that salt-of-the-earth plaintiff’s lawyers are hopelessly outgunned in the task of trying to get friendly figures elected to judgeships to sustain the large jury verdicts they win. One wonders whether any of Maslin’s editors warned her about recent news events — she doesn’t seem aware of them — that suggest that the direst immediate problems of the Mississippi judiciary might not relate to populist plaintiff’s lawyers’ being unfairly shut out of influence. Of course it’s possible she’s not accurately conveying the moral of Grisham’s book, and if so I’m not likely to be the first to find out about it, since I’ve never succeeded in reading more than a few pages of that popular author’s work. By the way, if you’re wondering which character in the novel Grisham presents as the “hothead with a massive ego who hated to lose,” yep, it’s the out-of-state defendant.
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Yesterday’s extensive New York Times piece by Nelson D. Schwartz, the lead story in the paper’s Sunday business section, once again (see Dec. 9) provides strong overall perspective on the scandal, along with tidbits that will be new to all but the most obsessed (or most locally knowledgeable) followers of the affair. It focuses in particular on ever-more-central scandal figure P.L. Blake, sometimes known as the $50 million man, of whom we learn:
In interviews, other Mississippi political figures suggest that Mr. Blake has played a key role for Mr. Scruggs over the years. “P. L. essentially has done all the back-room negotiating for Dickie, but you’ll never see his tracks,” says Pete Johnson, a former state auditor who is now co-chairman of the Delta Regional Authority, a federal agency with headquarters in Clarksdale, Miss. …“He was the nexus of his political network.”
Incidentally, and presumably unrelatedly, former Times insurance-beat reporter Joseph Treaster, whose profiles of Scruggs in years past I’ve had occasion to blast as epically credulous, is departing the paper to teach journalism at the University of Miami, per Romenesko.
Anita Lee of the Biloxi Sun-Herald is also out with another good background piece, including the results of inquiries into a topic of widespread interest, namely the circumstances under which Judge Bobby DeLaughter’s name was not put forward for a federal judgeship even though (according to prosecutors) such a prospect had been dangled by conspirators hoping to improperly influence his rulings on a key Scruggs fee case:
Sen. Thad Cochran’s office told the Sun Herald that DeLaughter’s name was one of those mentioned for the appointment, but would not say which candidates Lott and Cochran privately discussed to recommend to President Bush. The office said Cochran wants to respect the privacy of candidates for the position. … Government evidence indicates DeLaughter e-mailed at least one order to Peters so he could pass it along for pre-approval from Scruggs’ attorneys.
Investigators are presumably taking an interest in confirming the account of Sen. Lott, who is Scruggs’s brother-in-law, that he raised DeLaughter’s name only as a brief and passing “courtesy” as opposed to making a serious effort on the candidate’s behalf (more). And a commenter at Folo points to a passage deep in the now-fabled Luckey transcript which is highly suggestive as to the possible ways in which a large share of P.L. Blake’s millions in tobacco fees might not have remained for long in Mr. Blake’s possession (more).
Earlier coverage can be found on our scandals page.
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Folo has posted (PDF) the information on which Joseph (Joey) Langston entered a guilty plea. A sample:
5. Between on or about July of 2006 and July of 2007, JOSEPH C. LANGSTON, Steven A. Patterson and the close personal friend of Robert “Bobby” DeLaughter split $3,000,000, representing the savings to Scruggs as a result of rulings in favor of Scruggs by Judge DeLaughter resulting in a settlement of the case.
A couple of points:
* The identity of the unnamed “close personal friend” of Judge DeLaughter was not revealed in the information, but it is widely assumed that that friend is a reasonably prominent former prosecutor in the state and that that figure may be cooperating with the feds. Since Patterson is also reported to be cooperating with the feds, and presumably will be asked to tell what he knows about this episode as well as the original Judge Lackey bribery attempt, that would make three principals in the DeLaughter/Wilson affair prepared to cooperate with prosecutors. The splitting of $3 million from Scruggs would also presumably leave the sort of paper trail that could not easily be disguised as lunch expense reimbursements and the like.
* The alleged quid pro quo that was to be offered to Judge DeLaughter — who has at all times firmly denied improper influence — is not money, but consideration for promotion to the federal bench. Judge DeLaughter was in fact considered for a recommendation to such appointment by the office of Scruggs’s brother-in-law, Sen. Trent Lott, but was not in the event appointed. It can be anticipated that the circumstances of that non-appointment — his brush with appointment, as it were — will come under close scrutiny.
Earlier here.
P.S. YallPolitics has a PDF link of the Patterson plea and David Rossmiller has a lengthy array of documents from PACER.
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Now we may have a better idea why prominent Booneville, Miss. lawyer Joseph Langston recently withdrew as counsel for Dickie Scruggs in the widening corruption scandal: per a report by Jerry Mitchell in Sunday’s Jackson Clarion-Ledger, Langston was himself nabbed on corruption charges, has pleaded guilty and is cooperating with federal authorities. According to the article, Langston’s guilty plea arose from his involvement in one of Scruggs’s many fee disputes with fellow lawyers, this one being the Luckey-Wilson asbestos fee matter (in which Scruggs’ adversaries were Alwyn Luckey and William Roberts Wilson Jr.) Langston will apparently testify that he worked with both Dickie Scruggs and son Zach in an attempt to improperly influence Circuit Judge Bobby DeLaughter, who issued rulings favorable to Scruggs in the case. In one memorable detail, the C-L reports that federal authorities have obtained a May 29, 2006, e-mail in which “Zach Scruggs told his father’s attorney in the case, John Jones of Jackson, that ‘you could file briefs on a napkin right now and get it granted.’” Judge DeLaughter has denied any impropriety. (Jerry Mitchell, “Another lawyer pleads guilty”, Jan. 13). Separately, Patsy Brumfield of the Northeast Mississippi Daily Journal, who was first with an unconfirmed report of Langston’s guilty plea, also reports from unnamed sources that federal prosecutors have flipped another of the five indictees in the original scandal, Steven Patterson (partner of informant Tim Balducci), and that documents to be unsealed Monday will clarify other aspects of the status of the case. (”First public clue Patterson has pleaded in Scruggs case”, Jan. 11; “Scruggs updates”, Jan. 12). Discussion: Lotus/folo, Jan. 12, Jan. 13.
The implications are enormous. Among them:
* It looks as if informant Balducci, who formerly practiced law in the Langston law firm, wasn’t kidding when he said he knew where there were “bodies buried“. Information from Balducci likely helped lead the feds to raid the Langston office and seize records documenting the alleged Wilson-Luckey conspiracy.
* Langston is no incidental Scruggs sidekick or henchman; he’s quite a big deal in his own right, with a national reputation in mass tort litigation. He’s been deeply involved in pharmaceutical liability litigation, in tobacco litigation, in litigation against HMOs, and in litigation against non-profit hospitals over alleged violations of their charitable charters, among other areas. Mississippi attorney general Jim Hood, the law enforcement officer who has comically been playing potted plant as one after another of his closest political allies have been getting indicted in recent weeks, has employed Langston as lead counsel for the state in both the controversial Eli Lilly Zyprexa litigation and the even more controversial MCI back-tax-bill litigation. Langston also served Scruggs as go-between in the much-discussed funneling of $50 million in tobacco funds to ex-football player P.L. Blake (to whom now-reportedly-flipped Patterson was also close). If the reports that Langston is now cooperating with the feds are accurate, he will presumably be expected to tell what he knows about other episodes. (Langston has also endeavored to provide intellectual leadership for the plaintiff’s bar, as in this Federalist Society panel discussion presentation (PDF) in which he strongly criticizes the work on federalism and state attorneys general of Ted’s AEI colleague Michael Greve).
* Part of Scruggs’s modus operandi, as we know from tobacco and Katrina (among other) episodes, is to arrange to bring down prosecutions and other public enforcement actions on the heads of his litigation opponents. A particularly brutal instance of this crops up in today’s Clarion-Ledger piece, which reports that Scruggs in 2001 took documents obtained in discovery from Wilson, his fee-dispute opponent, and brought them to Hinds County (Jackson) district attorney Ed Peters hoping to instigate a state tax prosecution of Wilson:
Later, one of Wilson’s lawyers met with Peters, and [Wilson attorney Vicki] Slater said Peters told that lawyer that a “high-ranking public official” asked him to prosecute Wilson.Peters could not be reached for comment.
Wilson did nothing to warrant criminal prosecution, Slater said. “All of this was to help Scruggs in his lawsuit.”
This is the same Dickie Scruggs of whom the New York Times was less than a year ago running moistly admiring profiles quoting common-man admirers of the Oxford, Miss.: lawyer: “good people. … If he tells you something, it’s gospel.”
P.S. It would certainly be interesting to know who that “high-ranking public official” who helped Scruggs in the tax-prosecution matter was, if there was one.
P.P.S. Corrected Monday a.m.: “Langston’s guilty plea was to an information; he waived indictment” (Folo). This post originally described Langston as pleading to an indictment.
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