Posts Tagged ‘fraud’

Update: false accuser liable to school district in Brian Banks case

After Wanetta Gibson falsely accused Brian Banks of rape (earlier), her family won a settlement in a civil suit against the Long Beach, Calif. schools; Banks himself, a former prep football star, served more than five years in prison. Now the school district has obtained a $2.6 million default judgment against Gibson, whose whereabouts are unknown. “According to the school district, the judgment recoups a $750,000 settlement paid to Gibson and also includes attorney’s fees, interest and $1 million in punitive damages.” [Long Beach Press-Telegram] Earlier accounts had erroneously reported that Gibson had been paid $1.5 million.

More tips for disability claimants

If collecting workers’ comp payments premised on disability from knee and other injuries, it is best not to post photos on Facebook of your exploits continuing to race your BMX bike [Kent, Wash.;]

P.S. You might face less scrutiny, per this L.A. Times account, if you’re a Los Angeles firefighter or police officer claiming injury on the job under a remarkably generous compensation scheme “that has cost taxpayers $328 million over the last five years.”

Wins $25M verdict, withdraws from case after seeing sanctions motion

Extraordinary sequence of events: “After winning a verdict of nearly $25 million in a federal trade secrets case earlier this year, Akin Gump Strauss Hauer & Feld has filed a motion to withdraw from its representation of LBDS Holding Company, LLC.” According to the firm’s account, it had been unaware until seeing a sanctions motion from the defendant that not all was as it seemed with the evidence backing up the case. [ABA Journal]

“Stunning”: Patton Boggs to pay Chevron $15 million

The large law firm, which is also Washington, D.C.’s biggest lobbying firm, will pay $15 million, express regret and withdraw from representing Ecuadorian environmental complainants to settle the oil company’s charges that it had participated in a litigation scheme that Chevron has called fraudulent and extortionate. “It also agreed to assist Chevron with discovery against the Ecuadoran plaintiffs and their New York-based lawyer, Steven Donziger,” as well as hand over its five percent share of any moneys the plaintiffs happen to win when the whole thing is over. [Washington Post; Paul Barrett, Bloomberg Business Week; our coverage of the case over years]

N.J.: “No disability pension for ex-officer who staged shooting”

In November 2010 Camden Sgt. Jeffrey Frett radioed for help after receiving a superficial gunshot wound in the leg. Police discovered his wife near the scene and the officer later admitted “that he and his wife had concocted the incident. Officers injured in the line of duty receive a pension that pays 66 percent of their salary tax-free for life.” In the mean time, however, Frett had applied for a disability pension on a separate basis, namely the aftereffects of a 2008 car accident while on duty. Now the state pension board has turned down his request, with one of its members publicly questioning why the officer was permitted to plead to a very minor charge to resolve the staged-shooting episode. [Philadelphia Daily News]

“Ex-Dewey Executives Charged in Fraud That Destroyed Firm”

Extraordinary allegations by the Manhattan District Attorney, as summarized by Bloomberg:

Three former executives at Dewey & LeBoeuf LLP, once the No. 3 legal adviser to banks handling merger deals, were charged with a “blatant” $200 million fraud that spurred the largest law firm bankruptcy in history.

The three, including the chairman, executive director and chief financial officer, were accused of using accounting gimmicks similar to those that sent top executives at WorldCom Inc. and Tyco International Ltd. to prison a decade ago. Authorities cited e-mails in which the men referred to “fake income,” “cooking the books” and “accounting tricks.”

Frontiers of lawyerly fraud

One has to hope this kind of thing doesn’t happen often [press release, Office of the U.S. Attorney, District of New Jersey]:

A former attorney in the Haddonfield, N.J., office of a firm specializing in toxic tort litigation today admitted that he falsified defendants’ names in more than 100 asbestos suits filed in New York State courts in order to increase business and his standing in the firm, U.S. Attorney Paul J. Fishman announced.

Arobert C. Tonogbanua, 44, of Sicklerville, N.J., pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of wire fraud. During the proceeding, Tonogbanua admitted that he fraudulently inserted the names of his former law firm’s clients into legitimately filed asbestos suits and charged the clients more than $1 million in attorney’s fees, costs and settlements to defend them.

[via Legal NewsLine; South Jersey Times] For a retrospective on the Lynn Boyd Stites/”Alliance” scam of years ago, in which a circle of defense lawyers in Los Angeles used manufactured litigation to harvest fees, see clips here, here, here, and here.

Judge: Ecuador verdict against Chevron “obtained by corrupt means”

“U.S. District Judge Lewis Kaplan in New York said he found ‘clear and convincing evidence’ that attorney Steven Donziger’s legal team used bribery, fraud and extortion in pursuit of an $18 billion judgment against the oil company issued in 2011.” [Reuters, Bloomberg, 485-pp., 1842-footnote opinion; SFGate, Kevin Williamson, Quin Hillyer, Ira Stoll (New York politicians including Comptroller Thomas DiNapoli roped in as allies of Donziger)] We’ve been covering the story for years.

“Ceglia Arrested over Claims in Facebook Lawsuit”

“Paul Ceglia, who sued Facebook founder Mark Zuckerberg in 2010, claiming he was promised a 50% share in the social media company, was arrested on Friday. His alleged crime: doctoring, fabricating and destroying evidence to support his claims. The feds described his lawsuit as a multi-billion dollar scheme to defraud Facebook and Mr. Zuckerberg.” [Joe Palazzolo, WSJ Law Blog, Donna Tam, CNet]